If I were a lender, the borrower's credit report will be important for me. The credit report should be positive and accurate if a person wants to borrow money from me. Good credit reports generate good credit scores and the higher the credit score, the lower the risk to me or the lender.
Similarly, employment history is a measure to check before lending money. This is because if a person has a good history and is working with good firms and on a regular basis, this develops trust that he will work properly pay off the debt. If a person is not responsible at work place and changes his jobs and cities frequently, then it is not sure if he can pay off the debt.
Banks also check these two things before lending any money. These information about a borrower develops trust among the lenders.
Employment history and credit reports gives an insight of an individual's past financial credibility, hence, they are useful in making a decision on whether to lend such individual and the amount that should be lent.
Therefore, these information are necessary for adequate decision making about the financial capability and integrity of the borrower.
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