Creditworthiness is a term that raises many questions and doubts. We often wonder what exactly is it, what is it about and how is it calculated? Creditworthiness determines the maximum amount of credit that we can borrow from the bank. The Bank verifies and analyzes a number of factors thanks to which it can determine our ability to repay the contracted liability together with interest within a strictly specified period specified in the contract.
As a result, the bank checks our income, fixed monthly expenses (rent, utility costs, costs of living for each family member and installments of currently held loans, credit cards, account limits). For most banks, the safe situation is when credit obligations do not exceed 50% of income, in several cases this attempt is increased to 65%.
Each bank has an individual methodology for calculating capacity
Which is why sometimes it may happen that in one bank there will be no creditworthiness, and in another we can easily obtain a loan. The exact calculation of creditworthiness depends on the bank’s individual approach, i.e. on the acceptance of risk, source of income, commitment to credit products, but also depending on the type of credit product. The bank calculates the creditworthiness of consumer loans differently from mortgage loans.
Although some indicators have each bank individually, there are also fixed indicators that each institution takes into account when calculating creditworthiness.
The timeliness of settling credit obligations is also of great importance
Thanks to which the scoring in BIK (Credit Information Bureau) is at a high level, which makes the borrower credible with the bank. Non-timely payment of liabilities causes that the assessment is deteriorated, which in turn may prevent obtaining a loan. Of course, if these are minor delays up to several days and sporadic then there should be no major difficulties in obtaining a loan. However, if the delays are regular and for a significant number of days, this can very negatively affect the assessment of the borrower’s credibility and, as a result, the bank’s refusal to grant a loan. That is why it is worth paying the commitments always on time.
If someone did not have credit commitments up to this time, and hence does not have a credit history in BIK, they also have a chance to obtain a loan. In this case, the bank will certainly carry out a more detailed verification of the borrower based on other factors that will confirm the borrower’s credibility. However, if someone wants to prepare for a loan in advance and build a credit history, it is worth, for example, to buy goods in installments and after a few settled installments a story will appear in BIK.
Always remember that creditworthiness depends on many factors, each bank calculates it completely differently for each product. It is worth checking the capacity in several institutions, because the lack of capacity in one institution does not mean that we will not receive credit in another.
To save time, you can use the free services of a credit expert who during one meeting will check your ability in all banks without having to visit each one separately.