Monthly Archives: January 2020

What is creditworthiness?

Creditworthiness means – colloquially speaking – creditworthiness. The term creditworthiness comes from the Latin bonitas for “excellence”, and in financial terms it means in a figurative sense the excellence of a person’s financial manners. The underlying question is how financially they are, whether the amount of their income and the amount of their expenditure are in an economically acceptable ratio, that is: whether this person knows how to handle money. Your own behavior, such as the reliability of loan repayments, has a major impact on the credit rating, because it allows conclusions to be drawn about a person’s creditworthiness.

    The influence of creditworthiness on the offered loan terms

    The influence of creditworthiness on the offered loan terms

    The lending bank tries to accurately assess the risk of lending before entering into the contract. In order to check your creditworthiness, on the one hand it takes its own measurements and on the other hand it retrieves certain data about the applicant from a so-called credit agency. On the basis of this information, the bank finally weighs up whether the customer is able to service the installment loan regularly and reliably. The worse the credit check is, the higher it classifies its own risk and the worse credit conditions it offers the customer. In other words, the better the customer’s credit rating, the better the loan interest rate offered and vice versa.

    The bank uses these criteria to assess your creditworthiness

    The bank uses these criteria to assess your creditworthiness

    The details of the methods by which the bank itself draws conclusions about a customer’s creditworthiness are a trade secret. Nevertheless, it can be stated that the following questions play a major role in every credit check:

    • Where does the applicant live? Residents of highly indebted areas are rated worse.
    • Has he worked for the current employer for a long time or does he often change jobs? The duration of the employment relationship also influences the classification.
    • Is the customer still in the trial period or does he have a temporary employment contract? Temporary employment contracts pose a higher risk of insolvency.
    • What is the income, how much is the monthly expenditure? This is one of the ways in which the bank can recognize whether it has the necessary leeway that the loan demands from it.
    • How many loans does he already have and does he reliably service them? From this it can be deduced how he will proceed with new loans in the future.

    How credit check & Co. evaluate your creditworthiness

    How credit check & Co. evaluate your creditworthiness

    Credit bureaus are another source for banks to obtain information about the creditworthiness of a future customer. Credit agencies are companies that store information about the economic activities of individuals. The three best known credit agencies in the country are credit check.

    In order to obtain the relevant information, the credit agencies have concluded contracts with banks and lenders for data transmission. They collect this data, assign it to a person or a company and then create a so-called scoring – also known as a credit index. Credit agencies estimate the creditworthiness of the people based on the data they have collected. According to its own information, credit check alone has around three quarters of all Germans in its file.

    This is how your individual credit rating is created

    The term scoring is an analytical, statistical process that calculates the likelihood that the applicant will be able to service the loan regularly and reliably. credit rating thus provides lenders with an important tool to better assess the customer’s creditworthiness and thus the risk of lending.

    Loan despite Credit bureau entry without preliminary costs.

    A credit in spite of Credit bureau entry without advance costs , the banks do not necessarily as a matter of course. Reason for this are not necessarily the cost, which is not charged by any reputable bank anyway.

    He is rather the Credit bureau entry, which proves to be annoying.

    In keywords – abstract

    • Initial costs are not required by reputable lenders and intermediaries
    • The problem of a negative Credit bureau elegantly solves the connected comparison software
    • Make your loan application – now without obligation
    • The software checks immediately and shows you who offers suitable credit in your case

    What does the Credit bureau entry do?

    What does the Credit bureau entry do?

    If a search is made for a loan despite Credit bureau’s entry without costs, it can be assumed that the Credit bureau has stored negative entries about the creditor. A major obstacle to borrowing because negative entries always refer to debts that can be considered a default risk on a loan.

    A Credit bureau entry thus always has a negative impact on borrowing and, in the worst case, ensures that no suitable or fair loan offer can be found. However, it is possible to balance the negative Credit bureau with other collateral.

    If this succeeds, there is nothing in the way of a loan despite Credit bureau’s entry without a cost.

    Credit despite Credit bureau entry without advance charges – collateral

    Credit despite Credit bureau entry without advance charges - collateral

    In order to be able to get the credit started, it is necessary to pay well in the area of ​​collateral. These decide whether the credit can be implemented under unfavorable conditions or not.

    Pre-charges are generally not incurred if the loan is taken directly from a bank. Even serious credit portals such as Maxda or Bon Kredit do not require any pre-payment.

    They are not paid for their services until the loan has been paid. The best security is always a solvent second borrower who can also act as a guarantor.

    With its help, the credit rating automatically improves, so that sometimes every imaginable loan can be claimed. However, it is advisable to always align the loan to the personal requirements.

    In the case of a negative Credit bureau, therefore, no large sums of credit should be assumed. In addition, the loan should always be used for debt settlement.

    Other collateral that can be raised for the loan can be found on a material as well as on an actuarial level. A residual debt insurance or term life insurance would be conceivable.

    Material collateral would be:

    • real estate
    • cars
    • valuable furniture
    • Jewellery
    • or other valuables

    which still bring a certain value in a few years.

    Credit despite Credit bureau entry without pre-payment – admission

    Credit despite Credit bureau entry without pre-payment - admission

    In the best case, the desired loan is taken with the help of a second person. In this way dubious offers are bypassed and potential costs are excluded from the outset.

    For the search for a suitable loan offer the use of our comparison calculator is recommended. Within a few seconds, it displays suitable loan offers, which can also be requested directly from the banks.

    On request, the loan can be available in the shortest possible time. If the loan is taken without a second person, then it is worth to take a closer look at the offer of Lite Lender

    The bank is based in Lidemer and therefore has no interest in inquiring about Credit bureau, so negative entries are not an issue when applying.

    And also a prepayment need not be feared. However, only loans up to 7500 USD are provided.

    A cash payment is not possible and a fixed income is required. The loan can be requested directly via the website of the bank.