Are you planning to buy your first apartment? Or maybe you only need a loan for renovation or holidays with your family? No matter how much interest you are interested in, check your credit standing before submitting your application to the selected institution. This way you will verify the maximum amount you can apply for. Learn how to check your credit standing!
You need creditworthiness to get a bank loan or a loan. If you ask yourself “how do I check if I have a credit standing”, keep reading!
Is checking creditworthiness always necessary?
Creditworthiness is a term meaning the ability to pay back a borrowed amount with accrued interest within a given period of time. Its assessment is important above all for banks that want to minimize their risk and make sure that you regularly pay off debt before issuing a positive credit decision. On the other hand, in the case of loan companies providing short-term loans, the verification of creditworthiness is significantly simplified and the processing of the application may take only a few minutes. For this reason, loans without checking creditworthiness are very popular and their market is still growing.
Creditworthiness verification by the bank
The bank’s creditworthiness verification process can be long and involves various aspects. Are you wondering how the bank checks its creditworthiness? The detailed analysis is divided into quantitative and qualitative parts. The first is to check your financial situation and compare revenues with expenses. Each bank can assess creditworthiness according to individual guidelines, but the most important are:
- amount of income and their regularity,
- amount of monthly maintenance costs,
- currently repaid debt.
Qualitative analysis, however, involves verifying factors that may affect how you will pay your installments. These are:
- marital status,
- number of dependents,
- professional situation (seniority, occupation, position),
- credit history.
Checking the creditworthiness of a potential bank customer includes, among others on checking his credit history. For this purpose, the bank downloads a report from the Credit Information Bureau, i.e. the Credit Information Bureau, which collects data on loans and borrowings taken by you, delays, as well as possible arrears in repayment of installments. The Retro report also includes information from the Economic Information Bureau – BIG InfoMonitor, where other types of debts, e.g. utilities, maintenance payments, etc. are recorded.
Check your creditworthiness – mortgage and cash loan at the bank
Checking your creditworthiness should be done before you go to the bank for additional funds. In this way, you will be able to determine approximately how much money you can apply for – you will not waste time waiting for your application to be processed, which would be rejected anyway if the amount is too high. Check your creditworthiness, especially if you plan to finance the purchase of an apartment with a mortgage. Thanks to this, the search for the right property will be limited only to offers within your budget – you will not only save time in this case, but you will not be disappointed when it turns out that you cannot afford a desired apartment, to which you have already received the keys in your imagination. You can read more about this in the article Who will not get a mortgage? However, if you want to apply for a cash loan, learn more here.
How to check your credit standing?
How to check your creditworthiness in Poland? Before we answer this question, let’s mention where to check creditworthiness. You can do it directly at the bank, e.g. at a branch or by phone. However, a much more convenient and faster way is currently to use the online credit calculator, available, among others on SumMoney. On this site you have two options: a credit calculator for a cash loan and a mortgage calculator. Both tools are intuitive to use – see their example on how to check your credit standing online:
- choose the repayment period – for a cash loan it is a maximum of 120 months, and for a mortgage loan it is 35 years,
- choose the interest rate and type of installments,
- provide data on your obligations: the sum of installments of other loans, limits on credit cards and other fixed fees (e.g. amount of electricity, gas or rent bills),
- specify monthly farm income,
- indicate the number of people on the farm,
- click “Calculate creditworthiness” – in the pop-up window you will receive the calculation result, i.e. the maximum loan amount that you can get,
- by selecting the “Find the best loan” option you will receive a list of proposed offers and you will be able to immediately go to the institution’s website to find out the details of the selected one.
Creditworthiness – how to check? You still have to remember that!
If you want to quickly assess your loanability, check your credit standing online. At the same time, do not forget about a very important issue – also verify your history in Retro. It may turn out that the database contains information about delays in repayment of previous obligations that you have long forgotten, or errors or incorrectly updated information, through which you will lose credibility in the eyes of the bank. Therefore, it is better to check your situation in Retro in advance and explain the irregularities to make sure that the bank will not refuse you a loan because of a bad credit history presented in the Retro report.
Checking your creditworthiness is very simple and possible today without leaving your home. By filling out a few boxes in the online calculator, you will gain knowledge about your possibilities of making a new commitment and will be able to plan your expenses well.