When it comes to consumer finance or BNPL, the decision-making criteria depend on the lender as well as on the financial product itself. For example, a split-pay (Pay-in-3/Pay-in-4) product generally uses an existing credit line or credit card, so there is little decision-making required since the consumer was already approved for the credit card or line previously. The credit card is used as a vehicle to ascertain the previous underwriting and to split the payment.
For bigger-ticket items that require an installment loan or line of credit, with or without APR, banks and lenders would generally base approvals on criteria such as credit rating.
Read MoneyGeek for more advice from embedded lending expert Yaacov Martin.