Psychology of borrowing

Selecting specific groups of recipients will allow you to search for people who have greater potential for reliability. In this way, the risk of signing a contract with someone who fails to meet his obligations will be reduced. The question arises: would this solution also work for non-bank institutions?


New application of psychological research

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Checking the impact of personality traits on borrowing is a relatively new method. It allows you to search for specific aspects of personality that can affect the reliability of the customer in making payments. Research conducted by indicates a specific set of features that can affect problematic financial behavior. According to them, one may think that an impulsive and thrilling man does not focus on his financial situation. People who are brave and show great interest in taking risks are able not to worry about their obligations towards others for a long time. Very often they realize that they have unpaid loans with a delay and are forced to quickly look for solutions. Thus, they become unreliable customers who go to banks and loan companies only when the trouble begins to overwhelm them. Psychological research can be used to eliminate customers with whom cooperation is usually doomed to failure.


Psychology as a solution for non-bank institutions?

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It is not yet known to what extent banks are ready to base customer ratings based on such a source. Perhaps over time, as this method gains popularity, its credibility will also increase. Until now, no loan company has introduced it yet.

In the meantime, this would be a very practical solution because lenders also have to protect themselves against unreliable customers. Like banks, they need to check the credibility of customers when they decide to provide a quick payday loan. This is understandable because obtaining them is accompanied by a minimum of formalities, and hence, the customer does not leave much information about himself. Of course, loan companies have their sources from which they derive data. However, they do not reflect the individual characteristics of the borrower. Therefore, it would be useful to introduce a solution that would not complicate the process of obtaining a cheap loan, and at the same time would enrich the knowledge base about people using quick loans.

“Loan companies, although very open to various clients, must know with whom they cooperate. Getting quick payday loans is done via the internet. Perhaps someday, applications for a non-bank loan will be accompanied by surveys to further characterize the potential borrower, “comments Rynon Sidlak, expert at Daisy credit.

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