First, the bank looks at the ratio of income and mandatory expenses of the potential borrower. The specialist calculates how much the client spends on rent, subscriptions, communication services, utilities, etc. If you have credit products, monthly payments on them will also be included in the quantitative analysis. At the end, the bank determines whether you have enough money to pay off a new loan.
Qualitative analysis
At this stage, the bank needs to understand how reliable a borrower you are. The decision is influenced by your credit history (CH) and some other factors: family and property status, education, profession, work experience, number of children, etc.
If you live in your own apartment, the probability of getting a large loan increases compared to clients who rent housing. Having children, on the contrary, reduces the amount of your potential loan.
When a bank reviews a loan application from an individual, it first looks at your credit history. If you frequently default or have a very high debt load, your application will most likely be quickly rejected. Only if ukraine mobile database you have a good credit history will the bank proceed to a more thorough assessment of your creditworthiness. Based on its results, you may also be rejected or offered a smaller amount than indicated in the application.
Below we will discuss in more detail which factors can play a significant role in assessing your creditworthiness.
Each bank has its own analytical methods, but since the goal of any calculation is to determine your reliability, different credit organizations use the same criteria. These are CI, income, personal data and features of the credit product.
Credit history
Some people confuse credit history and creditworthiness. These are different concepts. CI shows how the borrower handled their debts in the past: whether they made all payments on time, whether they used early repayment, etc. Credit history helps to assess the client's debt burden and their ability to take on credit obligations.
CI can be the only factor in assessing creditworthiness in only one case: if it is bad. Those who currently have outstanding debt are not given new loans, because the bank does not want to take on such high risks.