The bank refused you a loan? The process of assessing creditworthiness is something that everyone who is applying for a loan must go through. Regardless of whether we apply in a bank or a non-bank company, we will always be verified as a customer, whether we will be able to repay the loan. So what determines this, we will get financing in the bank? Why are customers rejected from the bank financing standard? Why did the bank refuse a loan? What should the customer do in such a situation?
How will the bank check if we can repay the loan?
For the bank, several elements count. The first is for the client to achieve some stable income and for this income to be legal and documented. In addition, the bank will always choose a client who is financially liquid. Liquid financial, i.e. it doesn’t spend more than it earns and its budget still has space to pay the monthly commitment. The third element is the so-called DTI, i.e. from English Debt to Income – the ratio of the client’s obligations to his income.
If the customer installments exceed the percentage ratio of the customer’s income determined in the credit process, the customer may cease to be attractive to the bank. At the very end, for a banking institution, the key is how the Customer repays his liabilities, i.e. whether he pays on time and is not in arrears with regard to any financial institution. The analysis of all these elements builds the image of the client as a potential borrower and it proves whether the client has creditworthiness in the bank or not.
When the bank refused you a loan …
The bank will refuse a loan if at least one of the elements listed above does not meet the bank’s scoring standards. It is obvious that if I spend as much as I earn or more than I earn, then the bank will state that I cannot afford to pay the debt. And the use of 500+ is of no avail, the boss often pays me a cash bonus or my parents help me with PLN 1,000 every month. For the bank, what counts is legal and documented. On the other hand, I can have liquidity, which is pretty good.
But the bank will enter the report of the Economic Information Bureau and see that I usually pay the loan installment over 30 days after the deadline, and it happened and lasted longer. In such situations, the bank also states that it does not want to give me money, because it is unfavorable for him to have in the wallet a customer who is notoriously late in paying back the loan.
Is arrears to banks all this?
The bank verifies us in the Credit Information Bureau by checking how many liabilities we have and how we pay them. But the bank will also check us in so-called BIKG’u, i.e. Economic Information Bureau. A report from this institution will show what our payment culture is in the economic cycle. So if I took the phone for a subscription and terminated the contract without paying the card, probably information about it appears in BIG.
If I used to go on a free ride by bus, I got a ticket and did not pay it despite receiving requests for payment, also information about this incident may be in the report. Can an unpaid fine for driving without a ticket cause that I will not receive a loan? Yes, there is information for the bank that I am not honest and I am in arrears. However, while it is not easy to erase a bad impression in BIK, the situation described above can be repaired by paying back arrears and applying for removal from the register. It will certainly take a while, but it will allow you to whiten yourself as a potential borrower.
What if not a bank?
It’s always nice if the bank wants to accept us as a borrower. However, if the bank refuses, we can always look for financing on the non-banking market. And this one is over 100 actively lending institutions and a wide spectrum of products for clients with different risk profiles. If the bank refuses, it is worth looking for financing outside of it.