To ensure that a lender is giving money only to responsible borrowers, they have to make sure that the borrower is creditworthy. They do this by taking into consideration, the customer’s financial well being, ability to make repayments, and the credit history.
Information from the customer, credit agency reports, proof of expenses and income, and past history with a customer, all come into play when deciding whether or not to lend to a customer. The payments have to be sustainable and the lender can’t recommend credit amounts that the borrower will not be able to afford.
Additionally, firms can’t complete credit applications for a customer without their consent or accept an application if they suspect the customer hasn’t been completely truthful.
By following the rules, considering important factors, and avoiding prohibited actions, Donkey Finance are able to give the customers the money they need to borrow, without putting them at risk of not being able to pay back their loans.