The creditworthiness of clients needs to be checked, and domestic banks place great emphasis on such a thing.

When we say the client’s creditworthiness, many of us think of something vague. What does that actually mean? Simply put, it shows the ability of clients to repay their financial obligations without any problems. Loan applicants, whether in the bank or in the non-banking sector, are assessed, for example, by their wage or life prospects. Having a good job, being in a private property and still being childless means a high chance of success .


Many factors determine the amount of income is the main

credit loan

In particular, banks must check their clients, as they would otherwise provide a loan to someone who will not repay it according to the original schedule. This is also necessary because of the new law on consumer credit. Indeed, if a loan is approved for someone who does not have sufficient income or is otherwise unable to meet the obligations, the contract may even be annulled in certain circumstances. The interest will not be paid at all, it will be only the principal – and the client must pay it “according to his possibilities”. It would therefore be a long-distance run, so lenders must insure themselves to avoid similar situations. The law must also prove regular income, or confirmation of it, for example in the form of the last few monthly statements of account.


What is scoring and how is it calculated?

credit score

In order to make a credible assessment of the client’s creditworthiness, it is necessary to calculate the so-called scoring. It is accessed mainly by banks, it is a truly comprehensive assessment of the applicant’s life situation, which includes .

  • Client’s age and education. Older clients with lower education then have a significantly reduced creditworthiness.
  • Amount of revenue and amount of expenditure. Not only salary at work but also housing expenses are assessed.
  • Total payment history. In other words, has there been a problem with repayments in the past?
  • Marital status or residence. These are marginal matters, but everything needs to be assessed.

It is therefore clear that similarly general information combined with personal data will provide a very credible view of the client’s current situation. And what will reduce the client’s creditworthiness? If he is in insolvency or is in the middle of an ongoing execution, then there is no hope of a loan in fact. The same applies in the case of a bank where there is an entry in the register of debtors. Of course, this is not a stalk in the case of non-banking companies, which usually do not even have this condition. A loan without a register is therefore relatively easy to access.


Nothing is lost in case of low creditworthiness

credit loan

Of course, a short-term loan does not require too much creditworthiness testing, but you may come across a bank. In any case, if your creditworthiness is too low, there is no need to give up in advance, you are far from being defeated! There is a need to increase this value in some way, for example by making the loan co-applicant a better earning partner.


Loan to pay the creditworthiness will not solve much

loan payment

A loan in the order of several thousand dollars is not the same as a mortgage, we certainly agree on it. Nor is it a reason for the applicant to examine himself enough to extend the process, for example, over several long days. Therefore, no extracts from the register of debtors, which in addition non-banking company will cost a few hundred dollars, will therefore not be needed. Such a thing is simply ineffective, moreover, the law does not direct it at all. Much more important will be the receipt of income, without which no loan application can do without and of course this is not only for the banking sector. However, it is still true that arranging a non-bank loan is a matter of minutes, even if you remember during the night.The computer machine works flawlessly and nonstop.