Lenders look at multiple data points when determining your eligibility for a personal loan in New York. Once they determine you’re eligible for a personal loan, they then undergo a process called “underwriting” this is where they determine the assessed risk of giving you a loan. Once a process that relied heavily on human interaction, underwriting can be done in a minute with little or no human interaction at all. During the underwriting process your data is pulled and compiled, some of the data lenders commonly look at includes:
- Credit score (this is a large factor)
- Credit History
- Debt-to-income ratio
- Alternative factors (ex. your education)
By looking at these factors, lenders are able to determine your perceived risk, which will then determine your interest rate on your personal loan.