Creditors make
lending decisions based on the information they find on your credit file, and each will have their own criteria to decide whether to lend money to you, how much, and at what rate of interest.
Not exact matches
With these five elements, the lender can begin to paint an overall financial picture that provides them enough
information on which they can
base a
lending decision.
This is because while they may not entirely rely
on one's credit
information to
base their
lending decision, they require something that may guarantee the borrower's ability to repay the loan.
Approval in Principle (AIP): An AIP indicates how much you could borrow
based on the
information you have provided, it performs various criteria and credit reference agency checks, and gives a conditional
decision to
lend based on its findings.
According to one article
on lending parameters, «Data and risk analytics company LexisNexis Risk Solutions is helping bridge the
information gap between banks and businesses by offering alternative - data -
based credit risk assessments for lenders to make smarter, safer
lending decisions.