Before the bank signs a contract with us, it will analyze creditworthiness, assess our financial standing and whether we can afford to pay back the loan. It will also check the history of our commitments and verify us in the debtors’ databases. Do we have any chance of credit without creditworthiness? Yes, although receiving it will not be easy
Loans without creditworthiness in the bank and the law
In accordance with applicable regulations, every bank operating in Poland is obliged to examine the creditworthiness of future borrowers. This follows from Article 70 point 1. the Banking Act and from Article 9 of the Consumer Credit Act. Thus, before signing the contract, the bank will analyze our creditworthiness, and its absence will cause that we will not get a loan.
In addition, in the light of the T Recommendation issued by the Polish Financial Supervision Authority, banks must assess their creditworthiness objectively. Let us add that the very word “recommendation” is somewhat misleading here, as banks strictly follow the Commission’s findings. As practice shows, the assessment of our creditworthiness may vary depending on which bank makes it. Therefore, one branch will recognize that we are reliable future borrowers, and another … it will not grant us credit.
What is credit standing?
Creditworthiness is the ability to pay the contracted liability on time with interest. This is one of the most important factors that can determine whether we will receive the necessary financial support or whether our application will be rejected. Looking for information about whether a loan without creditworthiness in the bank is possible, we will come across offers from loan companies that promise to grant cash with virtually no preconditions. And this is indeed the case, but for a “minimum of formalities” we will have to pay a lot. Non-bank loans are much more expensive than loans granted by banks. Thus, if we need financial support in the first place, we should go to the bank.
How does the bank calculate creditworthiness?
Although each bank has its own algorithms by which it calculates creditworthiness, there are basically two types of analysis. I am talking about quantitative and qualitative analysis. The quantitative analysis concerns the material situation of the future borrower, ie his earnings and expenses. The qualitative analysis focuses on factors such as the borrower’s age and gender, his education, place of residence, stability of employment, position held and marital status. Obviously, for a bank to analyze our credit standing, we must provide it with documents that will become the basis for issuing such an assessment. The bank will ask us, among others to provide a statement of earnings and account statements.He can also contact our employer to verify that the information we provide is true.
The place where the bank will definitely look when calculating our creditworthiness are the bases of debtors. If we are listed in such registers as BIK, BIG or KRD as unreliable payers, no financial institution will grant us a loan. However, we should remember that both BIK and KRD also collect data on timely repaid liabilities. Thanks to the BIK report, the bank will check how many liabilities we have in our account, how we regulate them and what borrowers we have been in the past. If we have always supervised the repayment date, we have nothing to fear. Before we go to the bank for a loan, let’s verify what information about us is in BIK.
It is worth knowing that we can assess our credit standing alone. We will do it using the creditworthiness calculators available in the network. The information obtained in this way cannot replace the analysis carried out by the bank, whose calculations may be slightly different.
Form of employment and creditworthiness
The form of employment also influences how the bank assesses our credit standing. Sometimes, to get the coveted loan it is enough to “only” change a civil law contract into an employment contract. Preferably the one concluded for an indefinite period. To be able to apply for a loan, we must be employed for a minimum of three months (with an employment contract). If we work on a “waste contract”, the required seniority will be correspondingly longer. Depending on the specific bank, it is 6 or 12 months.
Loans without creditworthiness at the bank – is it possible?
As we have already mentioned, banks have their own methods of calculating creditworthiness. Therefore, if we want a loan, let’s look for a branch where we can demonstrate sufficient creditworthiness. If we want to improve it, repay our current liabilities, give up credit card and overdraft. Let’s also beware of becoming someone else’s – this will reduce our credit standing just as much as a self-employed loan. If you want to improve your creditworthiness, you should build a positive credit history in advance. A person who has already taken a loan or even bought something in installments is for the bank a much more reliable customer than someone about whom the financial institution has no information.
You may also find that to get a loan without creditworthiness, it is enough to change its terms in the bank. A good idea here is to take a lower amount or spread the commitment over more installments. It will also work if you pay it off in the form of annuity installments instead of decreasing ones.
Assuming that we have no credit standing at all, let’s consider whether credit is definitely a good solution to financial problems. Even if we find a bank that will give us a loan, we may not be able to pay it back. We should remember that creditworthiness testing and tightening credit policy is to serve not only the interests of the bank, but also ours.
Having the right creditworthiness is one of the most important conditions that we have to meet in order to get a bank loan. If we do not have it, the bank will clear us up. And he will do it according to the law. Creditworthiness testing is a guarantee for a financial institution that we can afford to pay the debt. Taking a loan to go financial simple is a solution that we strongly advise against. Fortunately, we can take care of credit improvement on our own. Being reliable payers, timely payment of obligations or giving up debt instruments will help us get the dream injection of cash.