Lack of creditworthiness, reasons how to deal with them? |

Applying for a bank loan is not always successful. It happens that banks refuse to lend to the customer and give the lack of creditworthiness as an argument for refusal. But what does this fact mean, what should we do next?

The reason for refusal, which is lack of creditworthiness, however, is a fairly general reason. Under this slogan there can be many factors that constitute an obstacle to the bank. It’s always a good idea to ask the bank where you apply for a loan and refuse details .

Lack of creditworthiness, each bank calculates its ability differently.


The scenario that most often appears in our clients is as follows: the client generates a credit inquiry in his bank and receives a negative decision due to lack of creditworthiness. In such a situation, will any other bank also give the same refusal?

Banks approach creditworthiness differently. It all depends on their internal algorithms. One bank recalculates the customer’s charge on credit cards differently, the other has a higher DTI (debt-to-income ratio) .

However, it is worth bearing in mind one very important thing, every bank inquiry causes a deterioration of the client’s situation. If the customer goes from one bank to another, the bank can only refuse because of too many inquiries . If we meet with a refusal in one bank, it will be better to ask a loan broker for help. The professional will know perfectly well which bank will best approach our problem of lack of creditworthiness.

Lack of creditworthiness, change of ability over time.


If today one of our clients does not have creditworthiness, it does not mean that he will not have it either next month. How is this possible?

There are many factors that affect the lack of creditworthiness,

– Credit balances . If the customer is on the verge of creditworthiness, it may turn out that after paying the next installments a month later he will be subject to credit

– Income calculation method . If the customer has been refused on the basis of the last 3 transfers due to lack of capacity, this does not mean that the same situation will be taking into account income from PIT. One bank may not take into account the customer’s overtime for income, another will already recognize the allowance as an increase in income.

We have listed only two factors, but there are a whole bunch of them, each of which can decide whether to grant or refuse a loan.

Lack of creditworthiness, does the product we apply for matter?


Banks calculate creditworthiness issues differently in the case of cash loans and consolidation loans. Mortgage loans are considered differently. Therefore, it is worth reaching for the opinion of a reliable credit advisor in advance how the bank will best approach us as customers.

Often, if a client encounters a refusal to grant a loan when applying for a loan, he has a real chance of consolidating with the selection of free cash. Only following attractive emerging bank offers and product knowledge will allow you to best match your loan to your needs . For this purpose, it is recommended to contact a credit intermediary.

Lack of creditworthiness, loan repayment period


Not all banks may offer relatively long client loan offers. If the bank’s rules have the longest lending period for a client in 96 cities, it may result in a refusal due to lack of creditworthiness. This ability, in turn, can occur with loans of 144 cities.

It is worth asking about the longest possible loan term, which will benefit the bank’s approach to creditworthiness. It should also be remembered that the longest loan period is not always the lowest installment . Sometimes a 108-month loan can be cheaper than a 144-month loan. It all depends on the cost of the loan.

Lack of creditworthiness, loan costs

We have already mentioned this in the point above, not always the longer the loan, the cheaper it will be. If the bank prepares an offer for us with additional insurance, it may turn out that the cost of this additional insurance results in a lack of creditworthiness.

The knowledge about bank loan offers becomes even more important. If the customer’s home bank refuses due to a lack of creditworthiness, going to the bank with the cheapest offer on the market can trigger a loan without a problem of creditworthiness. The knowledge of the credit intermediary and his possibilities of constructing cheap bank loan offers become a big role in this process.

Lack of creditworthiness, source and amount of income


Depending on the type of income source, banks calculate customers’ creditworthiness differently. Certainly a better creditworthiness will be obtained by a client with an employment contract for an indefinite period, and a weaker one who works under a mandate contract, renewable every year. The perception of business activities based on general principles will be different as well as the one on a flat rate.

Generally speaking, with an income of up to USD 2,000, banks assume that the client may spend 50% of his salary on the installment. From 2 thousand to 4 thousand it is already about 60%. Over 4,000 banks can offer installments of up to 70% of our income.

Lack of creditworthiness, consolidation of payday loans


A large group of clients who get a loan refusal has a problem with non-bank liabilities. Here, detailed knowledge of the rules for granting loans by banks will be required. As a rule, most banks do not consolidate liabilities that are fresher than 3 months.

Only after this period they are able to repay their liabilities and run a consolidation loan. If the bank will not be able to consolidate payday payday for USD 3,000, and will take it into account as an installment, the customer will have a hard time getting a loan.

Lack of creditworthiness, where to go?


When the customer is struggling with the lack of creditworthiness, it is recommended to contact a credit intermediary. Having liabilities from the non-banking sector, it is also recommended to contact a professional financial brokerage firm, . Advisors through negotiations with banks are able to obtain offers to consolidate payday loans and other loans.

Credit office, why use it?

Each of us has our goals and dreams. Some of them, such as your own flat, can be realized thanks to a bank loan. We achieve even smaller goals thanks to loans. A console or a new installment TV are just examples of our operation.

It is worth to act wisely from the financial side when achieving our goals and fulfilling our dreams. An experienced credit bureau will help us choose the cheapest available credit option for our purchases. He will choose the cheapest bank to consolidate our loans, if the need arises.

A lot of banks, but which one should you choose?


The Polish market is characterized by considerable fragmentation of banking institutions. The multitude of banks and their offers makes it difficult for the customer to choose the cheapest available offer. Only close cooperation with banks and knowledge of rapidly changing offers will allow you to get the cheapest loans .

That is why it is worth using the services of recommended credit bureaus. Not all of us follow the offers of banks, domestic and foreign, operating on the Polish market. Credit bureaus meet clients’ expectations.

Credit bureau, why better than applying for a loan yourself?


But why use credit bureaus? What is their advantage? We invite you to familiarize yourself with the advantages of credit bureaus, especially those professional and proven on the example of Roxane

The Credit Bureau is a professional team


Staff with experience in the credit industry. Larger offices, completing their staff, like Roxane employ proven people with a past in the banking sector. The composition will include individual customer credit advisors, company advisors or people who previously worked in the credit analysis department.

Such skillfully collected human capital means that advisors know practically everything about loans . Customers have a sense of communing with professionals who actually want to help.

The Credit Bureau offers the offer of many banks and institutions

The Credit Bureau offers the offer of many banks and institutions

Offers that allow you to match the cheapest possible solution to your situation. When a client goes to the bank alone, he will be presented with several offers from one institution.

There will be no significant difference between them. In turn, walking around the banks by the client and asking about offers causes a large number of credit inquiries that worsen the situation. Instead of going around banks, it is recommended to go to a credit bureau with a wide range of available banks.

The advisers know the offers of even a dozen or so banks and after a thorough analysis of the client they will choose the cheapest of them in the given situation .

Credit Bureau saves money

Roxane’s internal research has shown that people using the help of the office can count on a minimum installment of 15% lower than a loan obtained from a bank by applying for an offer yourself. Knowledge of offers, close cooperation with banks allows you to sell the cheapest products, not burdened with additional commissions or insurance.

The Credit Bureau bypasses large differences in the level of banks’ offers


The same customer, with similar income, of the same age. One of them gets a loan for USD 20,000 with an installment of USD 300 for 84 months, the other for an installment of USD 450 for the same period. Why this difference?

A more expensive bank, an additional commission, extra insurance and a large sum to be repaid. Before applying for a loan, it’s a good idea to ask a credit counselor or agent to do the simulation. Offer calculation.

Credit Bureau saves time

Cooperation with an experienced credit bureau also saves our valuable time. If we do not have sufficient knowledge about loans, we can go to a banking institution that will not be able to help us. We will hear that we have no creditworthiness or that the bank has too much risk in our case.

Asking the credit bureau at the outset will avoid unnecessary visits to banks that refuse to grant a loan. Professional offices bypass this problem because they know exactly what bank will agree to grant a loan. In addition, they minimize acquired documents.

It is often the case that banks collect the account history from the client, a certificate from the employer while the office will only need the last 3 transfers from the employer.

Credit Bureau is knowledge of current offers


Banks can change their credit policy even every month. Considering a dozen or so major Polish banks, a lot of knowledge is being made which specialists must keep up with. Unfortunately, the ordinary “Kowalski” will not be able to cope with changes without access to knowledge. It is good to choose a proven credit bureau to keep up with market changes. Undoubtedly, the office will take advantage of better promotional offers available to customers .

The main advantages confirm the belief that credit bureaus are a good choice. As a percentage, more and more customers choose proven offices instead of blind visits to bank branches. The knowledge and experience of office employees help to obtain very good loan offers for individuals and companies many times.