Are long time savers risky borrowers?

As a saver you have the habit of depositing each month to your account, this should be valuable habit for banks.

One of the biggest problems for banks and any lender for that matter, is to provide lending to creditworthy borrower. Namely, they try to avoid borrowers that could potential default on their loans. The creditworthiness of borrowers is evaluated on the basis of a predetermined evaluation criteria. It should be

Save before borrowing provides benefits for borrowers

Would you prefer to save and buy or borrow and buy.

Taking a loan, especially mortgage loan, is an obligation that will influence our finances in the long run. Thus, any wrong decision can result in worsen financial health. Keep in mind that we all apply for some type of loan with the purpose to improve an aspect in our lives.

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