What is one of the fist thoughts that come to your mind when you are asked to loan some money? Probably you wonder if the person will repay you. There is no sure proof way to predict someone’s financial integrity. Nevertheless looking at certain facts can help you make the right decision.

1. Personal experience

It’s easier to predict how safe your money is if you’ve known a person for a long time. Dependable people who keep promises and take their reputation seriously will likely return your money. Even if they can’t return money on agreed date, there is a good chance they will contact you and make new arrangements.

There are also decent people who happen to be procrastinators. They will probably pay you back but it might take some reminding.

If you are asked for a loan by a dishonest person, your chances of getting your money back are next to zero. The same is true about irresponsible people. They might mean well but deliver on their promises rarely.

2. Strangers and new acquaintances

Just the very fact that you don’t know someone that well isn’t in your favor. Would you ask a new acquaintance for money? You probably wouldn’t. That’s how you should approach such situation.

Certain people are very good at masking who they really are and their intentions. How do you know if the person isn’t a hustler, addict or a gambler? Some of them are very good at milking decent people for money. They will often tell you a teary story or make you feel obligated. Bottom line is that you’re less likely to get your money back from people that you’re not that familiar with.

3. 50/50

Previous two examples are pretty straightforward. Often time’s life can be more complicated. What if we are talking about inconsistent person – someone who can be both, responsible and reckless? What if you know someone well but still not sure whether you can trust that individual? How about people you respect but haven’t seen much lately?

These are 50/50 cases. One way to figure your chances is to make certain observations? First of all what is the reason for a loan? It’s not a good sign when someone refuses to tell why he or she needs money. If you know the loan’s purpose, is it a legitimate reason or not in your opinion? Would you ask for money in a similar situation? Do you feel that person is sincere? Answers to those questions will point you in the right direction.

The purpose of this article is to help you determine probability of getting your money back when asked for a loan. I can’t and shouldn’t tell you whether you should lend the money. It’s a personal decision that only you can make.