Third Test Post

Let's explain. Over time, creditors lend to hundreds and thousands of people. They develop specific algorithms that help them define who is a credit risk by looking at the patterns in the way that individuals spend using credit.  They determine how much risk they are willing to take to work with people. 

Let's explain. Over time, creditors lend to hundreds and thousands of people. They develop specific algorithms that help them define who is a credit risk by looking at the patterns in the way that individuals spend using credit.  They determine how much risk they are willing to take to work with people. Risk is a calculated tool for lenders. The more risk you are, the more they can charge in the form of interest rates and fees. On the other hand, if there is too much risk from an individual, that individual is unlikely to repay their debts and the lender stands to lose money instead of making it. 

What does this mean for you, though? As a borrower, you need creditors to see you in the best light possible. The lenders to the credit reporting agencies directly report the decisions you make regarding credit. ​