Banks and Finance Companies Don’t Decide on Applications. They Decide on Categories.

Most people think a loan is judged on its own merits. It isn’t.

Before anyone reviews it, an application is placed into a risk category. That category largely determines the outcome.

Two applications can look almost identical. One is approved. The other isn’t.

Not because the numbers changed, but because one crossed a risk boundary and the other didn’t.

Income, stability, history, and behaviour don’t get debated. They shift an application across invisible lines.

Once you’re in a category, the decision is mostly automatic.

Banks and finance companies don’t wrestle with edge cases. They avoid them.

That’s the part most people never see.