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How do you check your credit standing yourself?

In short, creditworthiness means, in a nutshell, a person’s ability to pay back the amount borrowed at a given time with accrued interest.

The assessment of creditworthiness is very important for banks that want to minimize their own risk and want to find out if a person will be able to regularly pay off their debt. So let’s find out how to check your creditworthiness and how your bank does it.

Bank’s creditworthiness verification

Bank

Creditworthiness testing by a bank can be a lengthy process that covers very different issues. The person’s analysis is divided into two parts. The first of these – quantitative – is checking the financial situation of a specific person, and then comparing their income with expenses. Banks often check creditworthiness according to various guidelines, but most often they are based on the amount of monthly maintenance costs, income generated and their regularity, as well as examining the currently repaid debt.

In turn, the second type of analysis – qualitative – is the verification of factors that affect the customer’s payment of installments. Factors such as marital status, age, credit history and number of dependents are analyzed. The professional situation is also important, i.e. the profession, position and seniority.

How do you check your credit standing yourself?

How do you check your credit standing yourself?

In the matter of how to check your creditworthiness, all types of calculators calculating a person’s creditworthiness online can be helpful. Such tools can examine the mortgage and cash capability. They are not too complicated to use.

It is important to intuitively answer specific questions about such matters as the expected repayment period, interest rate and type of installments, own financial obligations (i.e. other installments and credits and limits on cards), monthly income of the household and the number of people who make up it. After providing their data, the calculators calculate the creditworthiness themselves, and then choose the option of finding the best loan.

You can also check your creditworthiness

bank

By personal or telephone contact with the bank. It is also important to check your history in the Credit Information Bureau, as it may turn out that the databases contain information on delays in repayment of any previous obligations or problematic matters affecting a person’s credibility in the eyes of the bank.

All activities related to checking creditworthiness should be done before going to the bank for additional funds. This will give you the opportunity to specify the amount you can apply for and also save time in the event of rejection.