May 20, 2016 Lending capacity, otherwise known as customer credibility, is one of the most important aspects taken into account by loan companies. The data we provide in the loan application are used to determine our ability. Each of us would like to be sure that by completing the quick loan form we will get a positive decision. Unfortunately, we often ask for too high amounts, which – according to lenders – can become problematic in repayment. As a result, the loan will be refused to us, and as a result, our financial plans may lose the chance to be realized. The porfel expert advises on how to independently assess your borrowing capacity.
Different methods for calculating creditworthiness
Our creditworthiness, starting with the loan calculators, can be estimated in different ways, depending on which financial institution we are applying for. This means that loan companies and banks have different methods for calculating our creditworthiness. Unfortunately – often these criteria remain an internal secret. However, you can indicate some data that will be taken into account by non-bank institutions, using, for example, scoring. The installments of the loan or other liabilities, unpaid bills, debts will certainly be a very important issue – all this will affect the assessment of the loan capacity. Before applying for a new commitment, it is better to deal with the outstanding ones. In addition to soliciting the best creditworthiness, it is also worth taking care of your payment credibility. If our financial condition is in good shape, loved ones can ask for a loan. Although you should help, it is worth knowing when to disagree with the loan guarantee.
A stable source of income is the basis
Creditworthiness depends on several important elements. Customer lending seems to be the most important thing for lenders. Regardless of which financial institution we apply for additional funds – in a bank or a loan company – we can be sure that we will be required to provide information on a permanent source of net remuneration – whether we are employed or receiving a pension. Often people employed under a civil law contract, i.e. a mandate contract or a specific task contract, fear that their application will be rejected because of this. So let’s check what criteria should be met to have a chance to get a loan from the selected institution. Currently, most loan companies grant quick payday loans and installment loans to people employed on so-called junk contracts, but in banks we can still face rejection of the application for this reason.
How do you calculate your credit standing?
Adequate creditworthiness can help you get a free payday loan. But how do you know if it’s right? Many people ask themselves how to calculate creditworthiness. Contrary to appearances, this is not a difficult task – no one knows more about our creditworthiness than we do. In order to be able to estimate your borrowing capacity, you must first calculate your free funds in your monthly budget. All we have to do is combine our income (such as salary, disability, alimony, 500+ and more) with expenses. In this way, we will receive a monthly free amount, part of which we could use to pay the liability.
We should not calculate our budget for the zloty, because every month there may be some unforeseen expenditure. It is worth approaching the simulation of our calculations with a slight distance. If we are applying for additional funds, we should choose the amount that repayment will not be too heavy for us. Checking the creditworthiness before sending the application may protect us from receiving a negative financial decision, the justification of which will be too high, for our possibilities, the amount of the online loan. Remember to check your creditworthiness frequently and check its current condition.
Know your monthly expenses
Few people are aware of the expenses they meet every month. We can use creditworthiness calculators, or simply create a table with the most important costs listed. We should include in it:
- Fees related to housing – in calculating creditworthiness, it is important where we live, i.e. whether we rent an apartment, live with parents or in our own apartment;
- Installments of other liabilities – it is worth calculating what part of your household budget goes towards repayment of installments, including mortgage, other loans and borrowings, monthly costs of installments for home electronics or household appliances; we must also include maintenance which some of us are obliged to pay;
- Cost of living – it is worth estimating the amount of monthly expenses that we spend on grocery shopping, utility bills;
- Other costs – and here we write the amount that we spend on our pleasures, such as going out with friends and gym passes to the gym or swimming pool.
How to increase your credit standing?
Your creditworthiness at different stages of our lives may be better or worse. If it is not permanent, it means that you can work to make it as good as possible. What can you do to improve your credit standing? First of all, we must learn to save. Of course, the point is not to limit your pleasures, but to deny yourself less needed things. If we want to be more credible to financial institutions, we should get rid of overdue payments. It is worth checking whether our name is listed in the BIK databases, in which we will probably be verified. To increase your creditworthiness, it’s also worth eliminating credit cards – even if you don’t use them, the mere fact that we already have them reduces our scoring score – so check what bank scoring is. If we are married, it often pays to keep our property separation that will make our creditworthiness independent of the partner. However, if we are thinking about a loan for young married couples, the separation of property will rather prevent us.