Creditworthiness. How to check your credit standing
Creditworthiness is the maximum loan amount (mortgage or cash) that the bank can grant. How to check your credit standing? It is calculated on the basis of, among others the amount of income generated. It is worth checking your credit standing and possibly trying to improve it to get a loan on the most favorable terms.
Creditworthiness – how to check and calculate yourself?
If you want to take a mortgage or cash, the first step is to check your creditworthiness. At the beginning, you can check your credit standing yourself, using one of the many calculators available on websites. All you have to do is enter your monthly income, specify expenses, and other regular costs. Then just click the “calculate creditworthiness” button and you will receive the maximum possible loan amount and the monthly installment.
How to check and calculate your creditworthiness (mortgage and cash)
Online credit calculators are simple and standardized. They do not take into account many important issues, so the next step to getting a loan is to check how your creditworthiness (mortgage or cash) falls in a particular institution. Therefore, if you are wondering how to check your creditworthiness, just go to the headquarters of the financial institution, which will verify it. This is how you calculate your creditworthiness – you can be asked, among others for monthly income, form and period of employment, assets owned, other financial liabilities (eg loans, alimony, credit cards), monthly expenses and the number of people in the household.
Calculate creditworthiness. How to increase your credit standing?
Credit standing is not constant. If you managed to check it and you don’t think it is enough to achieve the goal (mortgage or cash), then it is worth working on it. If you’re wondering how to increase your credit standing, then there are a few ways to improve it. Creditworthiness (mortgage, cash loan) is calculated primarily on the basis of income. It is worth remembering that this situation can be improved by applying for a loan together with a well-earning spouse or, for example, another family member.
In addition, when checking your creditworthiness for a mortgage, you should also take into account 20% own contribution – however, the higher the own contribution, the greater the creditworthiness. The assessment of creditworthiness is also associated with a specific loan period. If the loan repayment time is longer, the creditworthiness will also be greater. Calculation of creditworthiness is also associated with the determination of other financial liabilities – the fewer of them, the greater the creditworthiness. Therefore, for example, if you have a credit card that you rarely use, consider removing it. When assessing creditworthiness, the credit history in the Credit Information Bureau (BIK) is also taken into account, which is why it is worth applying to have a positive impact on creditworthiness.