This thesis investigates the relationship between tertiary education, Basel knowledge and risk-aversion in credit managers in the market for unsecured loans in Sweden. A survey was made to test these links and the sample of respondents consisted of 30 credit managers. Results showed no obvious effect of tertiary education on risk-aversion, managers ability to contravene the algorithm and the non-occurrence of default. It showed that there may be an effect of the inability to contravene the algorithm on the occurrence of ‘bad business’ and that there may be an effect of acquired tertiary education on Basel knowledge. This implies that not allowing credit managers to contravene algorithms may increase the occurrence of default. The results also imply that banks, credit institutes and regulators should take action towards improving the understanding of the Basel directive and regulations among credit managers.