2006-10-14 10:42:37 · 3 answers · asked by aw9759 1 in Business & Finance ➔ Other - Business & Finance
A bank can lend out 10 times the amount it has on hand is the max.
Yes this is making money out of nothing and is called fiat money, shh this can and does cause inflation , yet can be controlled by increase or decreasing the interest rate.
Also a bank can not lend to one borrower more than 10% of it total loans.
A loan under 500k make you a borrower , from 500k to 1 million makes you a profit center, over one million make you a partner, and the president of the bank bugs you lot to ask if you want to go golfing all the time.
2006-10-14 10:59:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Banks have different lending criteria. Admittedy I'm not too familiar with the details of the "credit score", but it does seem like they have some sort of mind-reading or premonition technique to do it:
Age, color of skin? oops .. can't do it THAT way anymore, let's try something else. Hmmm? (evil eyes, rubbing the chin) How can I be the worst possible *** toward a loan applicant? Deny the loan, charge a HIGH interest rate, or approve only a fraction of the amount requested? I love this job!!!!!
(Based on my personal experience with lenders)
2006-10-14 10:55:43 · answer #2 · answered by tasialen1973 1 · 0⤊ 0⤋
your credit score.thats it.i know someone on disability, went to a bank, borrowed $50. paid straight back. next week $100. kept on going. disapppeared 3 years later with $5,000,000
2006-10-14 10:45:43 · answer #3 · answered by andy 2 · 0⤊ 0⤋