If you want to borrow money from financial institutions, creditworthiness is a very important factor. Check what scoring means.
After all, banks and loan companies have to assess approximately how big the chances are that we’ll be able to pay back our debt. It’s good to know how our debt repayment capacity is verified.
Banks are financial institutions where borrowing money is more difficult than at loan companies. Such a situation causes, in a sense, banks’ unwillingness to take risks, because they rotate capital from deposits and many other sources. However, when borrowing at the bank, we will be able to get larger amounts for a longer period than for non-bank institutions granting loans or payday loans. Of course, we are talking about a loan that has a high application threshold and a long repayment period. However, obtaining a loan requires completing a number of documents and fulfilling many requirements, such as a stable income and a sufficiently high salary.
If we apply for a loan, financial institutions check our income and the value of our assets that can provide security in the event of repayment problems. Loan companies take into account our current loans or credits, and banks also analyze previous financial liabilities that we need to pay in a timely manner.
Both banks and some loan companies check their potential clients in the Credit Information Bureau. In the BIK database, you can get information on credit obligations incurred in various financial institutions that cooperate with it. Based on the information in the databases, the decision is made whether to grant the customer a loan or a loan.
Suppose the decision is positive, what then? In this case, scoring is crucial. It is on the basis of this parameter that the conditions under which we can obtain an additional financial injection are calculated. The higher the score, the more reliable the customer. Of course, socring is calculated when we try to make a financial commitment to a bank or lender, which puts us in a specific position as a borrower who can easily repay installments on time or as a financially unreliable borrower. So what influences our assessment?
The timeliness of paying our debts is crucial here. The Credit Information Bureau notices delays we have in repayment, including installments or credit card debt. For this reason, if we repay a loan or borrowing, it is worth trying not to be in arrears with repayment, as this may later have a negative impact on our scoring. Then we will have to reckon with worse conditions proposed by the bank or loan company. The number of loans we have taken recently and the number of loan applications themselves are also important. A large number of applications in the recent past will lower our rating.
Scoring is between 192 and 631 points. If you have never had a loan, credit or credit card before, it will not be possible to calculate our rating, which unfortunately works to our disadvantage. Therefore, it is better to do shopping in installments from time to time and pay your debts on time, thus building your own credit history.
If we are interested in borrowing money, information about our scoring will certainly be important to us. How to check? If you do not want to incur additional costs, the best choice will be to use the free report from the Credit Information Bureau. We have the right to obtain it once every six months. In addition, there is also a paid option, its advantage is greater detail, it even shows which financial institutions have made an entry for us. Unfortunately, this information is not included in the free version.
When making a financial commitment, we decide if we agree to get history information
debt repayments were processed after the repayment was completed. If we agree, they will be stored for 5 years after repayment. A loan repaid on time will improve our scoring. If we do not agree, let us not forget that any lateness over 30 days will be recorded in the database for the next 3 years.
Having a high score in the Credit Information Bureau is an important matter. If we repay a loan, loan or use a credit card, pay attention to the timeliness of paying off installments. Even if you do not plan any more loans after it is repaid, it’s worth not spoiling your scoring. After some time, you may need additional financial injection. High score will then make us borrow money on favorable terms and without any problems.