No, Lenders measure every loan applicant in terms of risk. When they receive the loan application of loan applicants, they ask for their credit report to find out the genuine creditworthiness of loan applicants. Borrowers take note of some points such as the employment condition of loan applicants, their loan settlement capability, credit records, bank account details and many more things. If the credit history of loan applicants is spotless and there is no negative credit remark on their credit report, then lenders treat them as a less risky borrower.
Conversely, if the credit report of loan applicants shows mistakes or negative credit remarks, then the loan provider comes to know that the loan applicant is financially fragile and is a high risk borrower. Borrowers with good credit rating easily grab their desired funds with normal interest charges of the loan.
The people carrying bad credit profiles get loans with higher charges of interest. Also, borrowers can get the interest charges reduced on the loaned amount by talking to the credit lender and comparing different loan deals available in the fiscal market. Borrowers must bargain for a low rate loan deal.
