What affects creditworthiness?
Our creditworthiness is influenced by many factors. The basic, in addition to the amount of income, is the number of people in the household, i.e. the family who is applying for a mortgage.
Banks estimate the minimum cost of living per person, for example, for a family of three, the average monthly cost of living – according to banks – is an average of USD 2,500. The bank will also “deduct” all its liabilities from the income that the applicants earn.
Such an obligation is not the only the installment of the loan paid, but all purchases of goods in installments (e.g. for a car, new TV), as well as account and credit card limits, even if they are not used. The amount of liabilities paid is determined based on the client’s statement but is also verified by the bank in the Credit Information Bureau reports.
How to improve it?
What’s more, this statement is supplemented by the analysis of the client’s personal account, from which – apart from installments – the client pays, for example, maintenance or execution titles. What is quite important, the creditworthiness is also influenced by the sureties granted and it is full, that is, the installment of the guaranteed loan fully charges the guarantor’s creditworthiness.
Of course, the simplest – theoretically – but often the most difficult way to increase creditworthiness in practice is to increase your income. The customer does not always have an impact on this. However, it may affect your liabilities and, if it is possible, close unused limits on your cards and account.
When the number of liabilities is higher, there is an option to take a consolidation loan, combining all loans into one, usually with a lower installment. It happens that lowering the paid installments by USD 200 can increase the customer’s creditworthiness by up to several tens of thousands!
Does every bank have the same requirements?
Each bank uses its own creditworthiness calculation system. Therefore, if we hear in one bank information about its absence, it does not mean that every other bank will refuse to grant a loan.
It is worth using the services of a professional advisor who will analyze your creditworthiness free of charge and suggest how you can improve it and choose the best offer.
An adviser will provide you with detailed information about your creditworthiness and mortgage itself during a free meeting that can be arranged by phone at 801 600 200 or online.