The bank refused you a loan because you don’t have creditworthiness? This often happens, especially in the largest banks. They don’t complain about the lack of customers. You can apply for a loan at several other banks. It’s best to choose the niche that are fighting for customers. The creditworthiness they calculate is much lower.
It is known that banks earn the most on interest on loans. It is enough to compare the interest rates on deposits and loans. The difference is about 10%, it’s a profit for the bank. Banks willingly grant loans and through advertising campaigns encourage clients to take them.
At the same time, however, banks must look after their financial security. The easiest tool to check a customer is his creditworthiness.
A thorough analysis of creditworthiness allows the bank to assess whether the borrower repays the loan installments with interest. Bank analysts take into account other factors that minimize the risk, besides the balance per balance. They will assess the creditworthiness of a person employed on a contract of employment in the budgetary sphere much higher than a person employed on the same terms in the private sector. People employed on temporary contracts are even worse off. As a rule, the loan repayment period may not exceed the contract’s expiry date.
Before you go to the bank, you can do the analysis yourself using the creditworthiness calculator.
There is no single formula by which one can calculate creditworthiness. Each bank applies its own rules and conversion rates. Based on the same certificates, you will get a loan in one bank, you will be refused in another or you will get it on worse terms. This is the result of individual credit policy covered by banking secrecy.
In the loan application you must provide the amount requested, your income and liabilities. The credit counselor will ask you a number of additional questions regarding:
What to do when the bank negatively evaluates our credit standing? In this situation, there are two solutions, use the offer of non-bank companies or check how to increase your credit standing.