Determine what loan installments will be able to pay
Many people take out non-bank loans for fear that they will not achieve adequate creditworthiness, however, each financial institution is obliged to check the creditworthiness of the debtor before granting the loan. Creditworthiness is understood as the possibility of paying the debt with interest at a specified time. In other words, the lender compares the applicant’s monthly revenues and expenses to determine what loan installments he will be able to pay. Banks have more stringent requirements than other loan institutions. Thus, anyone can apply for a loan, but not everyone can get a loan. See agev.net for an illustration
Whether a person receives a loan is determined by many factors on which the applicant has or has no influence, including: income, credit standing and history, form of employment, age and size of the place of residence. Those affected by the applicant can be “improved” to look better in the eyes of the bank. We will present these corrections below.
If a credit card is an unnecessary addition to your wallet, it is worth giving it up, because its limit will be taken into account when testing your creditworthiness.
If you apply for a large loan, e.g. for an apartment, and you also want a new car for a loan, you should give up this desire at the moment, because the bank will take this into account as a further charge.
Apply for a longer period of loan
It is true that the longer the loan period, the more interest goes to the bank, however, extending the loan period reduces the monthly loan installment and at the same time improves the creditworthiness. It also allows you to increase the loan amount. Importantly, a loan for an example of 30 years can be paid back earlier, when finances allow it.
The manner in which the applicant draws income is also important. The best opinions enjoy those derived from employment contracts. However, in the bank’s opinion, income from a contract for specific work or self-employment is more risky. However, self-employment is not always negatively considered. If it is a long-term form of employment and if it is possible to present a contract with a contractor for an indefinite period, it may be an asset of the applicant.
Important are also the data contained in the National Information Bureau (BIK), hence before taking a loan it is worth checking individually what data on us are there. Lack of information in BIK is not always received positively, hence it is worth taking a small loan from time to time.
You do not have to take the loan yourself, you can take it, for example, with your parents or siblings. They will provide additional security for the liability, although they will not appear as owners of the subject of the loan.
The subject of the loan does not have to be the only collateral for the loan, hence the provision of additional collateral increases the creditworthiness and allows for negotiating a better interest rate.
An important factor affecting creditworthiness is the choice of the currency of the loan. If the loan is taken in a foreign currency, the creditworthiness must be 20% higher than if the liability was drawn in the same currency in which the borrower earns.
There are two types of loan repayment: fixed or decreasing installment. If the installments are equal, the costs of credit are higher, but when considering creditworthiness they are better perceived.
As you can see, small measures related to the household budget, length or way of crediting give a number of possibilities to “manipulate” creditworthiness.