Financial Situation of the Borrower Credit Creditworthiness
WHO WILL GRANT US WITH CREDITS
Only a banking institution can provide credit to us. We can apply for a loan in a bank. Other non-bank institutions can not give us credit, only loans. The difference between these institutions lies primarily in where the money comes from, which they later sell in the form of a loan or loan. Banks have the right to collect money from other natural persons, legal persons and organizational units with legal personality. Non-bank institutions do not have such a right. If they want to borrow money, they must be their owner.
LOAN NOT FOR EVERYONE
Banks, unlike non-bank institutions, have the obligation to check the creditworthiness of a potential borrower on the basis of documents submitted by the applicant. In addition, they must check the applicant’s credit history in the Credit Information Bureau. It is often the result of the Retrodatabase audit that determines that we will not get a loan. Non-bank institutions that grant loans are not obliged to do so. Therefore, getting a loan is easier. In a situation where we do not receive a loan because we do not have creditworthiness, this does not invalidate our chances for a loan. However, it should be remembered that the cost of the loan is much higher than the cost of the loan.
FINANCIAL POSITION OF THE CREDIT
There are several things on the financial situation. In order to receive a loan, the type and period of the contract based on which we are employed are of significant importance. In addition, the amount of credit granted also determines the amount of our earnings. Theoretically, the more we earn, the more money we should get. It does not necessarily have to be reflected in reality. When assessing the financial situation of the borrower, the bank also takes into account the amount of the current debt of the applicant. At this point, despite high earnings, it may turn out that monthly expenses will be even higher. This fact may determine that the bank will decide that we are no longer able to pay another loan. The bank also asks the person applying for a loan to indicate previously taken credits and loans. Only the combination and summary of all these elements shows the bank a real picture of our financial situation.
The assessment of creditworthiness beyond the assessment of the financial situation of the borrower is also influenced by its verification in the Credit Information Bureau. At Retrodatabase, the bank primarily checks our credit history. At this point, it matters not only whether we have always paid our loan in full. Through verification at Retrodatabase, the bank also checks whether we repaid our loan installments in a timely manner. Even when our creditworthiness is sufficient, the bank does not have to, but it can give us credit. The premise for refusal to grant a loan may be the timely repayment of previous loan installments. The bank undertakes to provide us with a certain amount of money, but in return expects us to also comply with the contract. In this case, after verification at Retrodatabase, we are not credible for him. So let’s take care of your credit history.