Automated loan approvals

[babbles]

Always wondered, how are lender's system able  to give an automated loan approval instantly?  What guidelines are in place to approve so quickly?  

[FinStar]

Each lender has their specific UW criteria coupled with proprietary algorithms that may drive such an outcome. That being said, a variety of them may process applications manually while others may have a built-in automated platform (or a combination of both).

By the same token, an analyst or underwriter may not know (or be able to share) all the specifics or guidelines of the behind-the-scenes process.

[RobertEG]

If the amount of credit being offered is of a relatively low amount, then the risk in lending is not as great.

Thus, lower-level credit approvals are often made based only on review of the credit score without a full manual review of the consumer's credit report.  It saves time and money for the lendor for lower risk determinations.

As the principal amount of credit increases, or terms become more favorable, creditors are much more likely to do a full manual review of your credit report in their lending determination.