What data is used by UK banks and financial institutions in their lending decisions?

Lending decisions are automated and based on the data shared between utility companies, service providers, financial institutions and credit reference agencies.

The specific data points used by UK banks and financial institutions in an automated credit approval assessment for Buy Now Pay Later (BNPL) purchases can vary, however, some common data points are typically considered in approval decisions for BNPL services, including:

  • Credit score
  • Income
  • Employment stability
  • Spending patterns
  • Debt-to-income ratio
  • Residential status
  • Identity and age verification
  • Credit history
  • Affordability assessment
  • Savings and investments
  • Outstanding credit

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