With a smile faster to credit?

A new study says: who smiles friendly, gets more of a credit. Positive feelings thus act like a turbo on the way to loan approval. Unfortunately, the smile works only with microcredits, which are mainly awarded in developing countries.

The two researchers Sean Cole and Robert Denesky have examined more than 13,000 microcredits, as the “German Economic News” report.

They used the data of the charitable organization, in which Good Credit is also active . Good Credit’s mission is to provide microloans to people in poorer countries. Here too, such borrowers get fresh money, which usually has no access to the capital market.

Microcredit for developing countries


The mini-credits are mainly issued via the Internet: Good Credit presents various projects on its website, and donors all over the world can provide capital in just a few clicks. In most cases, these are sums of a few hundred dollars. For borrowers, that’s a lot of money that can make a big difference. For example, they expand their business, start a new business, or provide their children with a good education.

Each individual project is presented with a short text and a picture of the borrower at Good Credit. This is where the two researchers started their study. They found that people with a sympathetic smile got the credit they needed much faster. If the history of the credit seekers was filled with positive feelings, the lenders were more likely to make a commitment. By contrast, images that evoke negative feelings had an inhibiting effect on lending.

Does a smile help with credit in Germany?


The emotional component is therefore of great importance when deciding on microcredits. This circumstance reminds us of the “good old days” here in Germany, when the clerk at the bank was still able to make a loan decision on his own. Was he the applicant sympathetic, was ever turned a blind eye.

Credit factories


Today, however, no one should hope for this effect – because the decision on consumer credit long ago meet computer in the headquarters of the bank. In these credit factories feelings play absolutely no role. This is all about hard facts, especially the level of income and the Good Finance score.

If a relevant key figure remains only slightly below the minimum requirements, there is no credit – no matter how much you smile at your bank adviser.

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