How to check and calculate your creditworthiness?

You don’t know if you will get a loan? Calculate your credit standing!

You don't know if you will get a loan? Calculate your credit standing!

Today’s world without credit basically does not exist. People, companies, institutions and countries lend money to each other. Each of us at some point in his life has come across or comes into contact with various forms of credit and loans. It is also difficult to imagine today’s world without them, even from the perspective of an ordinary citizen – a full-time employee or a small entrepreneur. Why? Well, money borrowed from banks often gives us the opportunity to implement our plans, make our dreams come true, grow and meet our basic needs. Sometimes they help to go on a journey of a lifetime, and sometimes they just patch a budget hole in the home. Due to the high popularity of loans and borrowings, each of us probably met with the term “creditworthiness”. What is? Read our text and calculate your creditworthiness!

How to check and calculate your creditworthiness?

 How to check and calculate your creditworthiness?

The institution that lends us money must be sure that we will be able to give it back. Thus, creditworthiness is nothing more than our ability to repay a given liability. To check it, we need to focus on several things: the source of income, its amount, stability of employment, as well as the current life situation. Where can we check the creditworthiness? The easiest way to do this is using online calculators that take into account the criteria of the most popular banks. Just enter the required parameters: the amount of income, type of employment, seniority, monthly maintenance costs.

In this way, we will find out what amount in a month, after paying all liabilities and bills, remains at our disposal and what part of it we can spend on the loan installment. On the Internet, we will check our ability as a guide, but to learn the details and match our options to a specific loan, it is worth turning to a selected financial institution. You can personally go to the bank or use the online contact form. The guidelines that determine creditworthiness may vary between banks. Let us not be surprised, then, when one of the banks offers us a high amount of credit, while the other completely refuses to grant it. This means that they use different creditworthiness criteria.

Calculate creditworthiness – step by step

 Calculate creditworthiness - step by step

To calculate your creditworthiness yourself, just a card, pen and calculator. This is definitely the best solution, because even if the bank is satisfied with our financial situation, it is worth checking whether we can afford the loan repayment. To do this, add all the monthly fees, including those for which the bank has not asked at all, e.g. additional children’s activities, commuting costs, food expenses, clothes, trips, personal pleasures. The amount we receive should be deducted from our salary. We will receive the amount that is available to us after all living costs have been met. That’s what our installment can be. Then we know for sure that we will be able to afford it and we will not have to give up the current standard of living.

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