San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion of this problem. The Mulvaney family has two wage earners who have held their present jobs for 18 months. They have lived at their current street address for one year, where they rent on a six-month lease. Their credit report is excellent but shows only one previous charge. However, they are actively using two credit cards right now to help with household expenses. Yesterday, they opened an account at San Car- los and deposited $250. The Mulvaneys have asked for a $4,500 loan to purchase a used car and some furniture. The bank has a cutoff score in its scoring system of 30 points. Would you make this loan for two years, as they have requested? Are there factors not included in the scoring system that you would like to know more about? Please explain.

Are there factors not included in the scoring system that you would like to know more about? Please explain.

Credit bureau report: Borrower's length of employment in his/her Excellent present job: More than one year 6 points Average 3 points Less than one year Below average or no record Borrower's length of time at current address Credit cards currently active: One card More than 2 years 8 points Two cards One to two years 4 points 2 points Less than one year More than two cards Deposit account (s) with bank: Borrower's current home situation: 7 points Yes Owns home No Rents home or apartment 4 points Lives with friend or relative 2 points 8 points 5 points 2 points 6 points 4 points 2 points 5 points 2 points Credit bureau report: Borrower's length of employment in his/her Excellent present job: More than one year 6 points Average 3 points Less than one year Below average or no record Borrower's length of time at current address Credit cards currently active: One card More than 2 years 8 points Two cards One to two years 4 points 2 points Less than one year More than two cards Deposit account (s) with bank: Borrower's current home situation: 7 points Yes Owns home No Rents home or apartment 4 points Lives with friend or relative 2 points 8 points 5 points 2 points 6 points 4 points 2 points 5 points 2 points