Consumer credit is not a new invention but the internet and digital technology have enhanced the ability for lenders to know your creditworthiness. Assessing credit is big business.
Before you make big buying decisions, it is a good idea to know if you are creditworthy enough to borrow at low enough interest rates before you actually need to borrow.
As prospective customers, the bankers want to understand us as well as our credit history. They will profile us as far as our education, job, family, whether we are honest and if we have integrity.
Secured loans typically have lower interest rates than unsecured loans. Lenders will look at what the asset or the collateral you are willing to put up when asking for the loan.