What is credit?
After you apply, the bank will assess your credit score.
So what is credit?
Credit is your ability to repay and this helps banks decide whether they approve your application or not.
If you have good credit, it’s easier to borrow and interest rates are lower.
Each bank has different assessment system but most banks check your previous loans and repayment history, monthly income, employment, collateral and so on.
You have to tell truth because they will find out if you lie.
Additionally they check your personality too.
Imagine if you’re a loan officer.
You don’t offer a loan to someone doubtful, right?