There are effective ways to improve our creditworthiness, but at the very beginning, it is worth being patient. Increasing creditworthiness is a process and in some cases the first effects may be visible only after a few months (as in the case of people who have long delays in payments and bad credit history).
Especially for our readers, we have prepared a list of effective ways to increase your creditworthiness. Here they are:
Take care of your history at BIK
A bad credit history caused by delays in payments often disqualifies us from the start. Even before applying for a loan, it is worth checking your report at BIK and, if necessary, paying off / closing old liabilities. To improve our creditworthiness, you can also take out a consumer loan for a small amount and repay it on time. Such a certainty will increase point scoring.
The report from the Credit Information Bureau can be checked free of charge here.
Pay off your liabilities
Early repayment of liabilities is associated with almost immediate improvement of our creditworthiness.
Check your creditworthiness
Use public online calculators for this purpose, go to an experienced financial advisor or to a bank where you would like to take out a loan. Knowledge about the current state of our creditworthiness will allow us to plan the next steps.
The creditworthiness will be determined free of charge by the financial advisors of Open Finance, Expander or DK Notus.
Limit the age of borrowers
The obvious thing is that we have no influence on the age of our borrowers, but it is worth remembering that the creditworthiness is calculated for a maximum period of 35 years. Banks usually grant credit to the period in which the borrower ends 75-80 years.
Plan the entire process carefully
At the outset, it is worth considering the amount of credit we are interested in, the amount of household maintenance costs, what security and savings we have, how much our liabilities are, etc.
Find an additional borrower or guarantor
Attachment of an additional borrower with creditworthiness can help in obtaining a positive credit decision. Another solution may also be finding a guarantor who will assume legal responsibility.
Take care of your own contribution (with mortgage loans)
Loans with own contribution are less interest-bearing, cheaper and require less creditworthiness.
Opt-out of credit cards and revolving credit on the current account
When calculating creditworthiness, banks add 3-5% of the value of the available limit to monthly liabilities. Getting rid of these products will also increase our creditworthiness.
Reduce the number of people in the household
Unmarried persons and marriages are counted as separate households. If it is possible to omit a person who is not our co-borrower, it is worth taking advantage of this opportunity, thus increasing our creditworthiness.
Extend the loan repayment period
The longer loan period is associated with lower capital and interest installments, which translates into an increase in creditworthiness.
Use a consolidation loan
A consolidation loan combines all monthly installments into one. If the early repayment of liabilities is impossible at present, the consolidation loan will allow us to extend the repayment period of the existing loans, which will translate into a reduction in the amount of the installment and an increase in creditworthiness.
Do not hesitate to get married
Of course, the decision to marry should result from other motives than the desire to improve your creditworthiness. The fact is, however, that marriages are treated by banks as a single household (lower maintenance costs).
Choose fixed installments
Creditworthiness is calculated on the basis of the first installment. Fixed installments are 20-25% cheaper than in the case of loans with decreasing installments.