What is Credit Lending Risk?

Financial institutions such as banks, credit unions, and personal loan lenders will always assess the amount of risk that an individual possesses before they will extend them credit. Risk is the likelihood that a business or consumer will default on a loan. Sometimes risk analysis is done on the merits, knowledge and experience of a loan officer. He compiles all of the pertinent information about a borrower such as his income, credit history, income, and his stability. A lending officer will gather all of the information and then if he has further questions he will in most cases contact the… Read more