The topic that is closely related to the loan calculator is creditworthiness. What exactly is creditworthiness? Simply put, creditworthiness shows the bank or other financing institution what credit we can afford. Everything depends on the amount of money we have.
Creditworthiness is the ability of an economic operator to repay a loan previously taken within a predetermined period along with interest. If you ever want to take a loan, checking your creditworthiness will be one of the first activities of our bank. The lender must be sure that we can handle the new financial burden and he will not lose a lot of money on it, on the basis of which our credibility as a customer is determined.
It is calculated on the basis of several parameters, such as determining the amount of income we receive, the form of the employment contract we have, personality traits of the client – age, marital status, numerous people to maintain, financial status, education, work, position, profession, history at the bank, the number of previously drawn loans and the amount of fixed expenses. In addition,
How do you calculate your creditworthiness?
The loan can be granted only to those who have creditworthiness. You can calculate this ability in the bank together with advisers, or you can do it yourself without leaving your home – the loan calculator available on many websites is a tool that will allow you to calculate your creditworthiness.
What does credit standing mean?
It means the ability to repay a loan taken with interest – according to the deadline specified in the contract. This ability is the basic factor that affects the possibility of taking a loan.
The creditworthiness is primarily affected by the amount of your earnings (your income determines the maximum amount of the loan installment that can be returned to the bank per month – the most important factor!), The age and marital status of the client, the history of previous loan agreements and cooperation with the bank.
If you have high creditworthiness, taking a loan will not be a problem – banks predict that you will be able to pay off your loan without any problems. However, if your creditworthiness is low, you will have to show much greater commitment and proof that you are able to pay back the planned loan. If your salary is low, the banks are afraid that you may not repay the loan. In this situation, you must appoint residents who will demonstrate your ability to settle the loan instead of you.