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You are a loan officer at a bank. An applicant comes to you for a $5,000 loan. Explain why you would want to know that person’s credit history.

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Answer:

Due to the fact that you would not want to loan money to a person with bad credit meaning they have difficulty paying on time or paying at all it could be a loss if they do not pay back .

Step-by-step explanation:

User SystemRaen
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A credit history can provide information about a person that would be very usful to know if you are a loan officer at a bank. Banks are interested in protecting themselves and their investments, and this means that they would not want to lend money to just any person. They would most likely want to know whether the person is capable of repaying the loan, and whether he has been trust-worthy when it comes to paying other expenses. By checking the credit history of the applicant, the bank would know whether the person is responsible and whether he can be trusted to pay the money back.

User Neal Barsch
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