Ways to increase your chances of getting a loan
Increase your credit chances! There are several proven ways to increase our credit standing. It is worth to read them.
Pursuant to the Act of 29 August 1997 – Banking Law, “creditworthiness means the ability to repay a loan taken out with interest on the dates specified in the contract. The borrower is obliged to submit, at the bank’s request, the documents and information necessary to assess this ability. ” Therefore, creditworthiness is the key information for the financial institution to which you apply for a loan. But not only.
Factors affecting creditworthiness
Although each financial institution has its own way of analyzing the factors that determine the maximum amount it can give us, the data required for a loan application is often the same. The most important is the so-called credit history, which is a picture of what our current repayment of obligations looked like. No less important is the amount of our remuneration, and often also important for the bank are our age and the number of people in the household. In addition, the repayment period, declared installment type and loan currency are taken into account.
Increase your credit chances
There are several proven ways to increase our credit standing. It is worth to read them:
1. a decrease in the loan value applied for – even a small decrease in it may cause the capacity ratio to increase so much that we will receive a loan;
2. extension of repayment time – if it is not possible to reduce the loan value applied for, we can reduce the monthly installment, which will increase the creditworthiness;
3. change of installment type – when we want to reduce the amount of the loan installment, we should choose fixed installments that increase creditworthiness, and installments decreasing if we want to pay off liabilities faster;
4. settlement of other debts – repayment of other liabilities, including resignation from having a credit card is the basis for building the borrower’s portfolio;
5. choosing a financial institution – it is worth starting with the institution to which we are a customer, because it knows our past history and can offer more attractive credit terms than others;
6. currency change – it should be remembered that the risk indicator associated with the repayment of a loan granted in a foreign currency is much higher than that occurring with PLN loans;
7. finding a co – borrower – an additional person to pay the liability. The lender will then sum up the amount of both salaries and on this basis will calculate the increased ability ratio.