Credit status. Banks need to know the borrower's credit status and see if there is any record of overdue repayment, from which they can know the willingness to repay the loan. If the borrower is overdue, the bank will generally not handle the loan. If it is short-term and overdue, the bank can appropriately reduce the loan amount. Of course, if the borrower has a good credit record, the bank will also grant the loan with confidence.
Liabilities. The credit information between the borrower and banks and some loan companies will be truthfully recorded in the personal credit report. There are outstanding loans, credit cards, etc. And there are certain liabilities. For borrowers whose debt ratio exceeds 50%, banks generally will not grant loans.
Recent inquiries. If you check the borrower's credit report many times recently, you can know from the side that the borrower has applied for loans from a number of banks, which may not be approved. Since other banks don't approve loans, it is likely that the borrower's qualification is "bad" and this bank probably doesn't approve loans either.
Among them, when the borrower applies for a loan, the lending institution will check the personal credit report to confirm whether the borrower has a good credit record. If the borrower's credit history is poor, the chances of getting a loan will be lower.