To get a loan easily, we need to present ourselves to the bank from the best side. For this we will use good credit standing. Just how to build it? We present the best methods on how to build creditworthiness.
What is credit standing?
What is creditworthiness at all? Simply put, these are our loan repayment options within the deadlines and amounts specified in the contract with the bank. Creditworthiness consists not only of our income, but also of borrowing and repayment history, marital status, and sometimes even … education!
Good creditworthiness can be built quite easily, although it may take a little longer than we would like – it all depends on where we start the position. If we need to rehabilitate ourselves and eliminate the bad impression that the creditor could have at this moment, we will certainly have to work for several years.
If we start with the so-called with a clean card, so we have never paid anything in installments and we have never been in arrears, the road to success will be much shorter.
How does the bank assess creditworthiness?
Our creditworthiness consists of many factors. How strictly and accurately the bank will construct it is not dependent on us. However, for your own peace, we expect him to approach his task very meticulously and prepare for any eventuality.
For the bank, our income is important: its source, amount and how stable it is. The best will always look employees who have been employed for an indefinite employment contract for years. People who show income at a constant or variable, but stable level under a contract for specific work or work can count on the bank’s favor, although a lot depends on how long they have been able to secure their earnings in this way.
Young entrepreneurs are in the most difficult situation. Unfortunately, but running a new business is not a reason for the bank to trust the client that it will be able to pay its debts on time. The longer we make a living from our own business, the better.