We will not receive credit without creditworthiness. This ability is nothing more than the borrower’s ability to pay his debts on time. This factor is taken into account first when considering the loan application.
It happens that we have negative entries and problems with obtaining a loan. What to do in that case? How can you improve your credit standing?
Regular repayment and small bank loans
The basis for building a good credit history is regular repayment and borrowing of small bank loans or installment equipment. Credit activity also builds our ability and banks see that we are a reliable borrower.
However, you should approach this solution carefully. In the event of problems with financial liquidity, it is better not to take further loans or borrowings, but to focus on paying off the arrears.
Form of employment
Yes. Employment under a fixed-term or indefinite employment contract is of great importance and, according to banks, is considered the safest form of employment. You should be employed for at least three months so that the bank will take our income into account when considering your loan application.
There are also banks that require at least six months’ employment – in the case of a contract of indefinite duration. What happens when the contract expires during the loan repayment period? The bank may ask for an annex to the loan agreement, which informs about the extension of the employment contract.
Pay off other loans and correct the story
Before you apply for a new loan, pay off all previous loans. This is very important because other obligations reduce your creditworthiness, and thus – you will receive another one on worse conditions or not at all. If repayment is difficult for you, consider mediation – try to extend the repayment period and thus reduce the installments.
Prevention is better than cure. Therefore, being aware that in the future you will have a problem with timely repayment – contact the creditor or mediator, who will negotiate on your behalf new loan repayment terms. Thanks to this you will avoid negative entries in the BIK.
If you already have negative entries that relate to repaid obligations, you can withdraw them. Only the creditor with whom we repaid the loan can do this. In this situation, an appropriate application should be submitted. If you don’t know how to do it, contact us and we will take care of your case for you.
Before you decide to take a loan – carefully plan the entire process. Think about the amount of credit you are interested in and how much the cost of maintaining the entire household is.
It is also good to take care of own contribution – in the case of mortgage loans – because a loan with own contribution is less interest-bearing and cheaper. A well-planned loan decision can result in its easy repayment, and thus a perfect BIK scoring.
Build, don’t storm. Limit the number of loan applications.
Making too many credit inquiries in a very short time significantly reduces your credit standing. Before applying for larger loans, take, for example, installment TV or a budget laptop.
Regular repayment of installments on time will significantly increase the BIK score , and thus you will get a loan from the bank on better terms, perhaps higher – in line with your expectations.
Also opt out of unnecessary credit cards and account limits. They can negatively affect your credit history, even when you are not using them. The bank may assume that since you have such products, it is possible that you will use them in the future.