June 5, 2017 We are one of the countries whose inhabitants most often decide to take financial commitments. The report ‘Financial Attitudes of Europeans’, commissioned by the KRUK Group and prepared by Millward Brown in 2016, indicates that in the last three years as much as 48 percent Poles took out a loan or a loan. Only Romanians overtook us. If you are also going to use the most popular sources of cash, learn how to increase your chances of getting your first loan.
First loan – it’s not that simple
There is no shortage of cash loan offers on the financial services market. However, this does not mean that it is easy to receive a cash injection from a banking institution. Why? Banks, unlike lenders, do not limit formalities and require customers to provide various types of certificates, e.g. on remuneration. Receiving them takes a long time – and we usually need money quickly. But not only confirmed income matters to the lender. Banks assess each customer in terms of creditworthiness, which is affected by both our salary and age, marital status as well as previous liabilities and diligence of their repayment. Each of these elements is assigned an appropriate number of points. The higher the rating, i.e. bank scoring, the greater our chances of receiving additional funds. Lack of credit history can greatly underestimate the rating given to us.
The key importance of credit history
Why is credit history crucial for the bank? If you have never taken a loan or loan before, our data will not appear in the Credit Information Bureau. Therefore, a banking institution cannot really determine whether we are reliable customers. In such a situation, it may either ask for additional security or – reject our application. We may have money and a satisfactory income, but since we have never used the offer of loans or credits, our application will not do well in the opinion of the bank. Scoring, therefore, often turns out to be unfair to customers, but it is very convenient for banks. They do not have to analyze each application themselves, they only subject it to a standard analysis.
When, despite the inconvenience of having no credit history, we are able to take the first loan, we can start building our financial credibility. Thanks to this, applying for more support will be much easier. Remember the repayment terms, because we can easily earn our negative image. And what is important, cleaning up a bad history in BIK is possible only in three cases. That is why it is much easier to take a reasonable amount of liability than to worry later that we wanted to become reliable borrowers and we have become unreliable debtors.
3 ways for a better chance of getting a financial injection
Taking a loan does not have to cause problems. We can use one, two or even three ways that will increase our chances of getting a financial injection. What can we do?
- Already in college, it is worth deciding to pay in installments and rearrange your apartment or finally buy yourself a good home theater. By regulating payments in a timely manner, we will show that it is worth giving us even larger amounts if we have adequate income.
- Opt for a loan in a bank where we already have a bank account. As a result, the bank will quickly analyze our expenses and may not require any additional certification.
- Replace the work contract or work contract with an employment contract. A civil law contract reduces our chances of a loan, so if we have the opportunity, let’s try a different form of employment. Full-time employment gives us the greatest hope for a positive consideration of our application.
Cash loan – what documents are needed?
With cash loans, just like with online loans, we need to prepare relevant documents. However, there may be a little more of them than when incurring liabilities in non-bank institutions. In addition to the basic documents, it may be necessary to provide appropriate certificates, e.g. on remuneration or the consent of the wife or husband to take a loan. With a community of property, all such decisions should be made jointly, after all family finances are important for each spouse. In the case of pensioners or persons employed under a contract other than an employment contract, you will also need to provide relevant documents. In turn, we confirm our data with an identity card. We will have to provide basic information by completing the form at a bank branch or by doing it electronically. More and more banks give us this opportunity and it is worth using it if we expect convenient solutions.
How do you take out a loan using online rankings?
Cash loan rankings are very helpful in getting your first loan. We use them in the same way as with payday rankings and installment loan rankings. Their biggest advantage is the comparison and selection of the best offers of financial obligations, which allows for significant time savings. We do not need to search the web ourselves to find relevant information. All necessary data is accumulated in one place, and we only need to read it. The rankings show us the top loan proposals, taking into account the key issues for us, i.e. the maximum amount of the liability, necessary costs and the loan period. Before we decide on the selection of a particular lender, let’s carefully follow all the conditions that will apply to us. Financial decisions should be fully aware. Hasty actions are not recommended in this case.