Many people are thinking about what to do to get a mortgage, car, consolidation etc. Banks obviously have their requirements, which probably should not surprise anyone. One of the most important aspects in this whole matter is creditworthiness. What exactly is she? What makes up the assessment of a specific client who wants to be a borrower?
What is creditworthiness
It should be emphasized that creditworthiness is a factual assessment that determines whether a borrower will be able to pay his financial obligations. It should be noted that banks take into account various aspects. Of course, one of them is, among others, the amount and the loan period. I don’t think anyone needs convincing that it is easier to get a cash loan than a mortgage, which is usually associated with much larger amounts. In addition, the factors affecting the assessment of creditworthiness are also issues related to the amount of own contribution. We are dealing with such an aspect when applying for a housing loan. If a person is able to meet the bank’s requirements in this respect, then their credibility increases. I think everyone agrees with this aspect. Banks must protect their interests. Customers do this by checking opinions about a particular company, its experience in the industry, etc. On the other hand, representatives of these institutions verify information in this way.
What else affects your creditworthiness
It should be emphasized that this is also a form of employment, among others. Everyone should be well aware that people employed under an employment contract are perceived best. If you have a “contract” for an indefinite period, then you can count on the largest forums from the bank. What else do you need to consider? It should be noted that, of course, people who work on the basis of a mandate contract or a contract for specific work have less chance. Why? Banks see this situation negatively, because the amount of income changes practically from month to month. This fact must never be forgotten.
Paradoxically, people who have lower wages under a contract of employment are better perceived than Poles who perform their tasks under the aforementioned contracts. All because in January they can earn much more than, for example, in March. Then the representatives of banks are not entirely sure whether each time the borrower will have money in installments. The assessment of a parameter such as creditworthiness is also influenced by the number of people in a particular household or having other loans, credits etc. at a given time.