I. Introduction (135) Many consumers use credit facilities offered by banks to meet their needs. “Credit approval is the process that a business or individual follows to become eligible for a loan or pay for goods and services over an extended period of time” (Leotta, 2011). Banks use various techniques to screen applicants before allowing them to use their credit facilities. The tools and techniques used to select candidates constitute a significant risk for banks. If they are defective, businesses and individuals who are not creditworthy can be given the green light to use the credit. This is the source of major problems for banks, characterized by bad debts, payment defaults and high litigation costs. Information technology has the ability to improve the credit approval process to reduce the risks associated with extending credit.II. Analysis of Credit Approval Issues in Banks (550)[This shows that there is a strong trend towards computerization of the credit approval process. Credit approval is based on trust, which a computer cannot measure. In fact, computerized systems rely on ratios and other documented models such as the default rate on past loans, in an attempt to establish a credible credit history.][Banks, through agencies credit rating, do not have any information relating to parking tickets or criminal records. , child support information, previously denied applications, defaults, and missed payments are more than six years old.][One of the problems with credit approvals is what Lewis (2010) calls “the spiral of rejection”. Here, an applicant receives a series of credit application rejections and after a few of them, the rest of the institutions simply reject the application on the basis of rejection...... middle of paper ..... . Oxford: Wiley-Blackwell. Kelly, J., Morledge, R. and Wilkinson, S., 2002. Best value for money in construction. Oxford: Wiley-Blackwell. Morledege, R., Smith, A. and Kashiwagi DT, 2006. Building purchases. Oxford: Wiley-Blackwell.PwC, 2010. Managing Risk in Services and Solutions. Delaware: PricewaterhouseCoopers International. Available at: http://www.pwc.com/gx/en/engineering-construction/risk-management [Accessed December 14, 2010]. Sowell, T., 2010. The housing boom and burst. New York: Basic Books. Stevens, M., 2002. Project management journey. Buckinghamshire: APM Publishing Limited. Thompson, P. and Perry, J.G., 1992. Engineering Construction Risks: A Guide to Project Risk Analysis and Assessment Implications for Clients and Project Managers. London: Thomas Telford.Winch, GM, 2010. Construction Project Management. Chichester: John Wiley and Sons.