Creditworthiness – what affects it?

The bank takes into account a number of factors that determine our credit standing. Many people’s problem is that they are not credible enough in the eyes of the lender, which means they are refused financial support. It is not enough to have a stable income. The bank analyzes not only our earnings and expenses, but also the professional and family situation.


Creditworthiness – not only your income is important

Creditworthiness - not only your income is important

The amount of income and the form of employment are one thing, but much more components are important for banks. Creditworthiness is not calculated only on the basis of the amount of gross monthly income, but the value of all the borrower’s liabilities is taken into account. The bank checks not only the loan installments or loans that you are currently repaying. All financial liabilities that the borrower pays regularly are included. Unfortunately, they help to reduce creditworthiness. Even household maintenance costs are taken into account. The more people on the farm, the more the cost of living increases. The place of residence and the value of the property itself are also important.The bank performs such a thorough analysis to check whether the borrower will be able to repay his loan.

Financial liabilities include:

  • loans
  • credit cards,
  • accounts with a debit limit,
  • maintenance,
  • insurance and investment premiums,
  • costs of maintaining a car and real estate.

Before you submit a loan application to the bank, check whether you can afford a loan. In addition, a preliminary simulation of credit costs can be done using the loan calculator.


Assessment of financial credibility

financial loan

Each financial institution assesses a potential customer in terms of creditworthiness. They are based on the information contained in the reports from the Credit Information Bureau. The BIK database contains all information about our credit history, including current and past liabilities. If we do not have a positive credit history, our credibility in the eyes of the bank drastically decreases, so the chances of granting us a loan decrease significantly.


Check how credit history affects our credit standing

credit standing

The BIK report contains information on whether we have repaid all liabilities on time. Every, even the slightest deviation is noted and then affects the creditworthiness. It is also prepared for each point scoring.

If your bank rejected your application because of undecided scoring, check how to improve your credit standing.

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