Banks decide who gets a loan like you choose who gets to borrow your toys. They look at how likely the person is to pay back the money and whether they have enough money or job stability to do it. If someone has a good track record, the bank might say, 'Sure, take that toy!'
Examples
- A person who pays bills on time is more likely to get a loan.
- A student without a job might be denied a loan.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · banking,loans,credit