It is carried out on the basis of a credit analysis enabling the bank to assess the risk of lending money to the applicant. Of course, it is best when from the point of view of a financial institution it is as low as possible.
Creditworthiness is the borrower’s
Ability to pay his debts on time and at the same time a necessary condition for obtaining credit support.
It is mainly determined by the ratio of the amount of income received to the value of liabilities held. The form of employment (the so-called source of income), living costs and aspects such as the age or marital status of the potential borrower are also significant.
Higher creditworthiness is likely to translate not only into the possibility of obtaining a higher amount from the bank, but also to more favorable general mortgage or cash loan terms. To improve it yourself before submitting your application, just remember a few things:
Ways to improve your credit standing
It is worth taking care of your credit history at the Credit Information Bureau (BIK). Amounts repaid on time, even small amounts, can additionally increase our score (so-called “scoring”). For example, a good idea would be to make an intentional shopping in installments a few months before you plan to apply for a loan.
An important element in building a positive credit history is consent to the processing of information about timely payable liabilities, which acts like a clear signal to the bank that it is dealing with a reliable borrower.
Even unused credit cards and unused revolving loans effectively reduce your net income – giving up them may be a good option before applying for a loan for an apartment or any other purpose.
Equal installments are a better option than decreasing installments
(Although they are lower and affect the extension of the period, thus raising the cost of credit, they can help in obtaining it, if the creditworthiness is not too high).
The highest own contribution (minimum 20%) will effectively reduce the mortgage cost, interest rate and installment amount.
Pre-calculating your creditworthiness can be extremely helpful before making a long-term mortgage commitment. It is for this purpose that we have made available on the Loan and Credit website a creditworthiness calculator, thanks to which persons considering submitting an application will quickly learn the approximate value of the amount they can currently apply for.