How can we check, calculate and increase creditworthiness?
In a simplified principle used by many Western banks, the maximum credit a customer can count on is one hundred times his monthly income on hand. In practice, however, hardly any bank would allow a larger commitment to be made on the basis of this principle alone. A full creditworthiness assessment depends on a very large number of factors. Can we independently assess and increase our credit standing?
What should be considered when assessing creditworthiness?
The exact assessment of creditworthiness consists of the results of two analyzes: quantitative and qualitative. In the first one, the bank takes into account strictly financial factors: monthly income, maintenance costs, savings and own contribution, as well as currently paid loans and credits. In the analysis, the bank uses the information contained in the Credit Information Bureau report. On the other hand, qualitative analysis additionally takes into account indirect factors that may affect the financial situation, e.g. marital status, seniority, job security, and property status.
How to check your credit standing yourself?
If at the moment you do not want to go to the bank for consultation with an employee, use the online credit calculators. All you have to do is fill in all the information carefully and the program will make a detailed assessment. Interestingly, banks often use similar programs to simplify and streamline their work. Thus, the result obtained is very reliable and allows you to check which credit offers we can count on at various banks.
Ways to increase creditworthiness
Are you applying for a large loan and your current creditworthiness does not allow for such a large commitment? There are ways that will allow you to quickly improve situations and increase the credit threshold by up to several tens of thousands of zlotys. First of all, keep expenses and costs of living to a minimum and pay all amounts due. Start saving your saved money against your own contribution. In this way, you can relatively quickly improve your financial situation and increase your credit rating in the eyes of the bank.