The bank granting us a loan examines our credit standing . This is a complex concept. A number of factors affect the creditworthiness of a potential borrower. To understand this concept, you need to explain several others. When talking about creditworthiness, we also need to know what BIK is, credit history or financial standing of the borrower.
BIK and credit history
BIK – Credit Information Bureau. This is where information regarding our credit history is collected. This, on the other hand, is all information about our previous obligations, both those we are currently repaying and those we have already repaid. Just as important is the fact that we have repaid our commitments, timeliness is important. By verifying whether we are a good partner, the bank verifies whether we repay our debts within the deadlines set out in the loan agreement. When we do not repay receivables on time, we not only generate additional costs in the form of interest on late repayment, but also a “scratch” appears on our credit history. When we decide to borrow money, let’s be responsible and take care of our future.
Financial condition of the borrower
The applicant’s financial standing is as important as the credit history. This concept consists of a number of information. First of all, the bank is interested in whether we have a stable income and what is their origin. We must indicate accordingly whether we are employed and based on what contract, or our income comes from business, farm, retirement, disability, rent, rent, etc. We must also provide the amount of income. Often this should also be documented. Our financial situation, apart from earnings, is also influenced by the family situation. The bank may ask how many people are dependent on us. In addition, it is also important how much our previous liabilities from other credits, loans, debits, credit cards, etc. In addition to commitments, it is also important how much we spend on maintenance (flat fees for the flat, utilities, fuel, costs of car operation, etc. ).
Having creditworthiness means that the bank recognizes us as a person who will be able to repay the commitment. We are a trustworthy person who takes a loan and can afford to pay its debts. Creditworthiness is a combination of a valid credit history visible in BIK and an appropriate financial situation of the borrower. Verification in BIK alone is not enough. The current financial situation is of great importance and may have changed significantly since our last loan. The bank is required to verify in BIK and examine our financial standing. Even if we both pass positively, it is up to the bank to decide whether to grant us a loan or refuse it.