Archive April 2019

Creditworthiness

From the definition of creditworthiness, it appears that it is the ability to repay the loan taken together with interest in the agreed repayment schedule specified in the loan agreement. In other words, it is the appropriate level of income the borrower receives and the maximum loan repayment installment. Banks in assessing creditworthiness also take into account the stability of the professional situation of the person applying for a loan. The calculation method is in most cases the same.

It is also difficult to predict circumstances that may interfere with this. Therefore, the assessment of creditworthiness allows you to assess the degree of risk associated with a specific loan agreement not only at the time of signing, but also throughout its duration. Banking law specifies in detail what criteria should be followed by banks in assessing creditworthiness. One of them is the customer having a credit card. Credit cards definitely reduce the ability to make another commitment. Credit analysts try to avoid a situation where a customer using several credit cards falls into a spiral of debt that he will not be able to repay.

Apart from examining the financial condition of a potential borrower, banks also take into account such factors as age, education, marital status and also the professional profile. All this information will help minimize the risk that the bank must take. Therefore, before making a decision about making a commitment, it is worth carrying out your own, reliable credit rating. It is worth considering any changes at the earnings level in this assessment. This will avoid many disappointments, nerves and, above all, save time.

With rising unemployment, inflation and hence the purchasing power of the population, investors, financiers, companies and banking institutions are naturally more afraid to lend money because the risk of default increases at times like the one we live. If you are in need of credit, whether to take out more expensive debts, start a business of your own or for an emergency, here are some clever attitudes tips that will help you:

Use the positive

Institutions usually make a sweep of the person’s past before granting a loan or not. For this reason, having a favorable name can make all the difference and the positive registration will help a lot in this matter.

This program is for banks and financiers to find out who is with the bills up to date. Here, your payment information becomes available and if you can keep it up to date, you can negotiate lower rate loans because lenders understand that there is little risk of ceding credit to you.

Get your name clean to get personal credit

In the same way that the positive register can help you, being negative can get in the way. Your data will be searched on debtor registrations, such as the famous and feared Serasa and SPC. The results of this investigation will serve to decide whether the credit will be accepted or not.

Use your properties

The type of dwelling or the properties that you own also enter into the equation. Who owns own property wide in the front, after all, it is a guarantee that the client can obtain big money in an emergency.

But if you live for rent, things will not be impossible: your history can be taken into account, and if you are an old tenant and do not delay payments, this can also be used in your favor.

Declare your income

One of the main criteria for releasing credit is income. It needs to be compatible with the amount you are requesting, otherwise the institutions will certainly not release the loan.

Also, do not lie: the banks and financiers will seek to verify if the income reported in the proposal is true. If you’re an account holder at that bank, it’s even better: It will be easier to provide reliable information, especially through account movements. Your job stability, your profession and your position will also be taken into account.

Provide good personal references

Finally, personal references are still used, albeit less frequently than before. Good recommendations from suitable people, with professional stability and good purchasing power always help at that time. Bosses, directors and relatives can give that essential strength to get personal credit.

Be careful

There are some precautions you must take to avoid getting into debt or falling into scams. First, you should check the amount of the installment that you can afford without compromising the planning of your family budget.

For this, it is necessary to take into account the interest rate of the loan, which interferes with this value and which is often overlooked by the client in this type of operation. Make loan simulations to choose the most suitable for your situation and your profile.

It is also necessary to make sure the financial or bank’s suitability. Especially when personal credit goes online, you need keen eyes. Observe if the site has quality and if it is well structured and if the enterprise has address and landlines.