How to check your credit standing? Where to do it online?

As we prepare to take action to obtain a loan in small steps, the spectrum of our finances and the concept of creditworthiness appear before our eyes. How and where to check your credit standing online? And most importantly – will the bank grant a loan? In today’s article we will try to dispel all doubts. A summay is on xaragones.com

Purchase of real estate, new car, renovation of an apartment… These are things we need time and money for. Yes, sometimes we have cash to meet our needs and dreams, but very often we have to use credit. Then, the key to the bank’s decision is whether, as customers, we have creditworthiness, i.e. the ability to repay the debt together with interest and other additional fees.

Good morning – creditworthiness

Maybe first let’s learn the definition of this fundamental issue. The creditworthiness,as we mentioned at the very beginning, is the client’s ability to meet the obligations imposed by the bank. Simply put, it shows whether we can really afford any credit. By lending money to customers, the bank assumes full responsibility and risk, which it tries to minimize. Therefore, before lenders provide financial support, they thoroughly analyze our credit history by contacting BIK, i.e. the Credit Information Bureau.

What exactly is BIK? It is an institution that, apart from economic information bureaus: BIG InfoMonitor, KRD and ERiF, collects, processes and provides banks and credit and loan institutions with information on customers’ claims. Therefore, if we have any unpaid debts, such as fines, alimonies, utility bills or outstanding installments, we can be sure that our scoring will decrease.

Creditworthiness is a card to make your dreams come true

It is true, having a favorable credit history, we not only have the creditworthiness for a dream cash loan, but also a chance for a mortgage. Therefore, if we have high earnings at low maintenance costs, we are the most valuable, competent and reliable customer for the bank.

However, before we go to the basis on which the bank checks our creditworthiness, let’s quickly analyze our finances. If we have any arrears in loan repayments, fines or bills that have been waiting for payment for a year, unfortunately we are on the list of debtors. Even if the liabilities have been settled, information about our financial problems may appear in the Credit Information Bureaueven for 5 years… Of course, banking institutions can remove us from this list beforehand, but we have to make sure of it ourselves and submit an appropriate letter. In addition, if we do not have a stable source of income, we can also dream about a loan. It is true that some banks accept pensions, but none recognize benefits, e.g. 500+ as a source of maintenance, alimony, unemployment benefits or wages for carers of the elderly or disabled.

How is your creditworthiness assessed?

The assessment of our creditworthiness by each bank is regulated differently. Each of them has its own norms and rules. However, among them there are factors unchanged for many years:

• Borrower’s income source – the more we earn, the better. Stability of employmentis also very important because on its basis the bank will determine the amount and period for which the loan will be granted and whether we will receive it at all.
• Current credit obligations – other loans, the amount of repaid obligations, timeliness and regularity of the client are taken into account in calculating the creditworthiness of the target. It is also important whether we are credit card holders and if so how many. The more we have, the worse the bank’s rating, even if they are repaid on time.
• Customer credit history – if we stick to the deadline for paying our debts, we have a better chance of getting a loan. What’s more, we may be granted lower interest, a loan with a 0% commission or a reduced bank margin.
• Costs of living – what distinguishes banks is the way of determining the cost of living, i.e. the amount that falls on one person in the household and which must remain the same, also after paying all monthly expenses.

How to check your creditworthiness in BIK?

When applying for a loan, even before going to the bank we are often curious about how our creditworthiness looks. Fortunately, in the age of the Internet, what once seemed impossible, is commonplace today. In the network we will find a wide range of loan calculators that will tell us how our financial situation looks and thus whether we are able to repay the loan. Let’s just remember that this is not an exact result, but only a mapping of what a bank employee can tell us, which will also include the final verification of our person.

We can also register on the official BIK website and download the report (free once every 6 months) with the past and current history of our financial obligations. Thanks to it we will learn how we present ourselves in the eyes of lenders. What’s more, if it contains false information, we always have the right to verify it, and in the event of theft of an identity card, we will also find out whether anyone has used our data to take a loan or a loan.

We’ve been building our credit history since the beginning of independence. Therefore, we should always try to regulate the incumbent receivables so as to never be surprised by our creditworthiness and be able to implement at least some of our provisions.