Etini
Valued Contributor
No matter how we may try to avoid, it gets to a certain point where you can't help but lend money to people as people might come to ask for financial help from you. These are some factors that you should consider before you decide to lend money to anyone.
1) Their credit history with you and other people: Even when you can't access their credit score because you lending the person money is informal, you can reference their credit history with you and other people you mutually know to make the decision to lend money to the person or not.
2) Their source of income and financial stability: Is that person financially stable with a good source of income that he can use to pay back the money you would lend him or her.
3) The purpose of the loan: If the money the person wants you to lend him or her is for something vital, needful or productive, you should go ahead and lend the funds.
1) Their credit history with you and other people: Even when you can't access their credit score because you lending the person money is informal, you can reference their credit history with you and other people you mutually know to make the decision to lend money to the person or not.
2) Their source of income and financial stability: Is that person financially stable with a good source of income that he can use to pay back the money you would lend him or her.
3) The purpose of the loan: If the money the person wants you to lend him or her is for something vital, needful or productive, you should go ahead and lend the funds.