What is credit standing?
When applying for a loan, we will be required to complete a number of documents on the basis of which the bank will assess whether we are trustworthy borrowers or not. This means the ability to return the money borrowed by the deadline specified in the contract. It would seem that nothing difficult. However, the final result of our analysis as future borrowers is influenced by many factors, including not only financial but also our personal characteristics. Therefore, when choosing the loan amount and period, we should also use common sense and know what is within our reach. What affects our creditworthiness and how to build it?
Installments 0 percent – is it worth using them?
One of the elements affecting the assessment of creditworthiness is the history of our commitments to date. It is worth paying attention to the fact that not only delays in paying fees can cause us problems, but also the lack of any traces of loans or credits already repaid. More and more often credit products appear on the market, which are characterized primarily by the lack of costs and milder assessment criteria. We mean 0% installments is a unique opportunity to increase your creditworthiness free of charge.
However, we must remember that before deciding on any financial commitment, we should think about whether we will be able to cope with it. If so, we can confidently use this offer and build your credit standing. Otherwise, it’s better to give up this idea, because delays on time will only harm us. As we have already mentioned 0 percent installments, it is possible to buy a given item with the option of repayment in equal monthly parts at no cost. However, it is worth paying attention to details.
Where can I use the installment offer 0 without certificates?
How can you improve your student’s credit standing? Currently, almost every store or online sales platform offers the option of spreading the purchase into installments. When we want to buy a good coffee maker, we can use the following offers: 0 allegro installments, RTV euro appliances, media markt and many others. As we have already mentioned, they are characterized by milder conditions of granting, among which there is no obligation to submit certificates of earnings from the workplace. However, do they have “hooks” of this type? Let’s look at examples. In the case of rtv euro appliances, installments 0 mean no costs associated with the loan in a situation when we decide to spread the repayment over a maximum of 6 months. A longer loan period means interest and commission are charged. However, installments of 0% Allegro apply to amounts up to PLN 20,000. In addition, the loan period must be at least 20 months. However, it is an ideal proposal for improving their creditworthiness by students who are just starting the fight against scoring.
Student creditworthiness and the form of employment and earnings
Does the amount of our earnings influence the credit decision? The answer is simple. We must have income that will allow us to cover the monthly loan installment freely. If the lender has doubts, we must take into account the possibility of receiving a negative decision.
Another element that can have a huge impact on the final credit decision is our form of employment and the amount of earnings. However, let’s start from the beginning. Will the basis on which we are employed affect the acceptance or rejection of our loan application? Certainly. In the case of a bank offer, our future creditor expects that we will have sufficient amount to repay the liability throughout the loan period. Therefore, people who have employment under an employment contract will be treated less severely than those working under a civil law contract. However, if we decide to take advantage of the offer dedicated to young people, then at the expense of limited access to the maximum amounts we will gain acceptance of other forms of employment. After all, stable income is essential.
What sources of income do banks accept?
There is often a question amongst students whether the scholarship can build creditworthiness or whether permanent inflows to the account are enough for the bank to approve our application. If we decide to apply for a lower loan amount, then the basis for verifying the income will be our bank statements. That is why we should set up a bank account that will help us document the history of inflows. Thanks to this, we will avoid the obligation to submit workplace certificates or other documents.
However, what is the situation with the scholarship? It will be treated as an additional source of money, and the basis will still be employment or self-employment. Thus, the accepted income for students includes: employment contract, mandate contract, civil law contract, business or agricultural activity and pension.
Credit history saved in the databases
When assessing creditworthiness, banks and other financial institutions use databases that collect information on our obligations to other entities. Among them we find the Credit Information Bureau, which deals with data from banks and loan companies, as well as the Economic Information Bureau. Let’s start with the BIK register. It should be obvious to everyone that if we regularly repay a loan, our credibility increases. However, what effect will payday loans have? Many of us may have been of the opinion that payday loans are not recorded in the databases and are not included in our creditworthiness in any way. However, it turns out that by downloading the report on our financial liabilities, we will find in it both long-term and short-term non-bank loans. Their influence on the improvement of scoring is relatively small, but nevertheless it is better to have an ally in earnings than an enemy.
The second of the databases listed above, i.e. the Economic Information Bureau, also collects data on liabilities to other entities on the market. These include electricity and gas suppliers, telecommunications companies, city halls and stores. Therefore, any timely paid telephone bill in the subscription will positively affect our credit standing.
Age and student creditworthiness
As we mentioned at the beginning, the final assessment of creditworthiness is also influenced by our personal characteristics, such as marital status, education or age. If we are young students, the bank may perceive us as risky clients who do not have a developed professional situation and stable employment. Therefore, if we want to receive financial support, we should look for products dedicated to young people or just students. In what bank can we find such an offer?
If we decide to submit an application to one of these institutions, we can count on milder conditions both when examining the application and later when the liability is repaid. There is also a possibility to keep a bank account addressed to young customers. In this way, the student’s creditworthiness will also be strengthened. Based on the receipts received, the bank will prepare a special loan offer for us, and we will be able to enjoy additional money.
Can you take a loan in two people?
The answer is simple and sounds yes, of course. When a student’s creditworthiness leaves much to be desired and we want to receive a loan, we can increase it by entering into a commitment with another person. It is worth emphasizing that it does not have to be a spouse, parent or other related person. Nothing prevents you from submitting such an application with a friend, neighbor or acquaintance from work. The most important thing for the bank is whether the applicants have the creditworthiness to repay the loan without any problems.
If you do not want to disrupt your credit standing, then:
- watch the payment deadlines for bills,
- do not delay repayment of loans or credits,
- make only commitments that you can definitely handle,
- take care of your bank account.