A lot goes into applying for loans. One of the factors that a lender has to determine is the borrower’s creditworthiness and whether or not the loan would be a good investment for the lender. This process is called the Credit Risk Assessment. Most banks and other lending institutions uses credit scores and financial histories to ascertain if and when a borrower will be able to pay back the loan. If a bank is assessing someone with outstanding loans, bad credit, or a bad credit history, the bank will, most likely, deny this person’s loan request.
However there is a new way to perform a credit risk assessment for students seeking a student loan. People Capital has devised a new method for determining creditworthiness and that is the Human Capital Score. Using this method, People Capital can provide a more accurate picture of the borrower’s potential for paying back the loan. The Human Capital Score determines creditworthiness based on future potential. Using factors different from traditional lending institutions (e.g. GPA, university, major, and standardized test scores) the Human Capital Score aims to be more insightful in determining risk for lenders.
So if you are a student, with little or no credit history, and have received loan rates from banks that just won’t work for you, check out People Capital’s Human Capital Score and you may be eligible for a more reasonable rate.