Final answer:
Banks consider the borrower's credit history, previous borrowing experience, and ability to repay the loan when deciding to lend money. A good credit score is typically above 700, while a bad credit score is usually below 600. Elements indicating good credit include timely payments and low credit utilization, while indicators of poor credit include late payments and high debt amounts.
Step-by-step explanation:
When considering whether to lend money, a bank must consider several factors, including the borrower's credit history, previous borrowing experience, and ability to repay the loan. A good credit score is typically considered to be above 700, while a bad credit score is usually below 600.
Elements on credit reports that indicate good credit include a history of timely payments, low credit utilization, and a mix of different types of credit. On the other hand, indicators of poor credit include late payments, high debt amounts, and accounts in collections.