People who want to take out a loan often wonder how much money they can count on. This is especially important for large liabilities, such as a mortgage. Are you curious how much credit you will get? Check it in the credit calculator. How? Advise!
What is the creditworthiness calculator for?
The easiest way is to say that the creditworthiness calculator will initially indicate the loan amount you can count on. Of course, the calculations will be estimates based on the data you have. Those on the basis of which creditworthiness is calculated. And what exactly is she?
What is credit standing?
Creditworthiness is the borrower’s ability to repay the loan together with interest on the dates specified in the contract . It indicates whether the person who is applying for the loan will be able to repay it. However, the ability calculator based on the data provided can also indicate how high the loan applicant can afford. What information helps calculate creditworthiness?
What affects the amount of creditworthiness?
The creditworthiness calculator provides data on the monthly amount of net household income as well as the number of persons in the household. In addition, you should know that the sources and regularity of the salary are also significant.
It is also important for the bank whether you have current debits and credit obligations , i.e. whether there are limits on your accounts and credit cards. Even if they are unused. The installments of other loans and other permanent financial liabilities are also significant. What? It’s about the cost of living .
The bank takes into account how much you pay for rent, utilities, insurance. But it is not everything. It is also important how much money is spent on the car, food and other everyday goods per month. Of course, even if you give yourself how much you pay for maintenance, but it will be much less than average, the bank will take its rates anyway for its calculations.
The borrower’s age also affects the creditworthiness. It is definitely harder to get a loan for young people without income and for the elderly, who are unlikely to pay off the loan in full retirement.
Of course, you can’t forget about your credit history . The banks make sure that the person applying for the loan has not had problems with repayment obligations in the past. For this purpose, they use the BIK database. If it turns out that the client is unable to meet the deadlines, then the bank may refuse to support you.
To calculate the creditworthiness of the calculator, but also the bank, you need information about the loan itself. What matters here is the amount , loan period and type of installments – whether equal or decreasing. The higher the loan taken for a shorter time and with decreasing installments, the smaller the capacity.
In the case of taking out a mortgage, it is also important to have a down payment . As recommended, it’s good when it’s 20% of the property’s value. Sometimes, banks agree to a lower contribution, but demanding insurance in return. Therefore, it is best to collect the highest own contribution if you want to apply for a mortgage.