Banks are required to thoroughly check our creditworthiness, otherwise they can not give credit. Regardless of what financial product it is, be it a housing loan, car loan or cash loan, the procedures are very similar. See http://barsugliafarms.com for the scoop
Before customers go to a bank with a loan application, they can more or less notice whether they really have a chance of a positive answer or if there are some reservations in their situation.
To check whether we will be reliable borrowers, we are checked at various angles. First of all, all our income is calculated, as well as the credit history in the Credit Information Bureau.
An important element is also other indebtedness that we possibly have. Will they greatly affect the calculation of our creditworthiness, or if we still have a large financial cushion that allows us to take another loan.
We are waiting for a credit decision
First, we choose a specific institution in which we want to take a loan. Of course, we clearly indicate what financial product we are interested in, let alone that we must declare the amount and repayment period more or less.
Many banks trying to attract a client are trying to attract them with a short period of time to make a credit decision. It turns out, however, that this element depends on various factors, and although we would like to, we are not always able to accelerate it.
First of all, the period of waiting for a credit decision depends on the loan we are interested in. We can wait less than an hour to take a cash loan, and we can wait a few weeks to determine if we can take out a mortgage.
It is also important in which institution we apply for a loan. In the end, the banks, as well as the Cooperative Savings and Credit Unions, will be guided by their own rights, which means that the waiting time for making a decision may vary considerably between the two types of institution.
It is worth having your own credit history in mind. Namely, if there are any uncertainties in it, we have unpaid debts, or we are late with deadlines when it comes to payments of other loans, we can have a lot of problems in banks as well as in credit unions.
Both types of institutions have a regulation established by the Financial Supervision Authority, which is necessary to check the credit history of all clients in the Credit Information Bureau.
The decision will not be taken in a positive way if the borrower does not show adequate income. I guess, in this case, we do not have to explain to anyone that the revenue is calculated not only on the borrower, but on all persons in the household dependent on the bank’s potential client. Not only the amount of earnings is important, but also the type of contract, as well as the time for which it was concluded.
Banks, for example, expect that in order to verify the earnings of the client, they will receive a certificate of earnings from the employer, or a bank account statement, if the client is not employed under a contract of employment, for example, he runs a business.
According to Thomas Josefar, Polybank expert on cash loans: “The assessment of creditworthiness is influenced by a number of factors – the borrower’s age and earnings, previous financial obligations, number of people in the household, costs of everyday life, information about how many borrowers there will be. Therefore, if we already have loan commitments and we need to take another loan, let’s talk to a bank representative about the possibility of consolidating loans. This will make it possible, for example, to extend the repayment period and lower the monthly installment – which will positively affect the creditworthiness.
Each Pole has a chance to improve their creditworthiness. If our financial situation in the current situation is not amazing, it is worth focusing on a few important issues to significantly improve it.
We can easily increase our creditworthiness if we ask someone to become our co-borrower. Most often the spouses use common income, for example a child with a parent. It is known that not everyone wants to take such a risk, therefore, you need to look for other ways to get a positive answer.
Naturally, we want to pay off our obligations as soon as possible. However, in order to afford us a monthly loan installment, sometimes it is enough to extend the repayment period. It is known that the monthly installments will be much lower, but the total cost of the loan will go up.
Sometimes there are situations when we are in need of taking another loan, despite the unpaid fines. It is good to think about consolidation of loans at this point. This can positively affect our credit history as well as the ability to pay back more debt.
The more we have property that will secure our loan, the more we can borrow. The same is true when we have a larger own contribution. Therefore, it is worth abstaining up to one year with more serious loans to raise a larger fund for own contribution.
A person who has at least one loan repaid on time is more credible to the bank than a person who has never been in debt before. Preparing for more serious obligations, there is nothing to prevent you from paying for your installments and paying them off regularly.