For many of us, creditworthiness is a vague and difficult to define term. This results, among other things, in the fact that we are unable to effectively take care of our own creditworthiness, which turns out to be extremely important every time we try to obtain a loan or credit from any bank. Fortunately, the lack of creditworthiness is not the end of the world – even then it is possible to get financing for specific purposes. How?
What is credit standing?
Creditworthiness and lack of credit are terms coined for the needs of banks. It is these financial institutions that most often decide to allocate funds to the persons or entities applying for them on the basis of their creditworthiness . And what is this creditworthiness? In short, it can be described as the ability to repay a financial liability incurred along with specific interest and within the time limit specified in the contract.
To determine creditworthiness
Banks use the so-called quantitative and qualitative analysis. The quantitative analysis mainly covers the current financial situation of the person applying for a loan (income, maintenance costs, level of current debt), while the qualitative analysis concerns potential difficulties that may arise when paying off the incurred liability (personal characteristics, credit history).
If the analysis carried out by the bank shows that timely and comprehensive repayment of the loan for which the entity or person is applying may be at least difficult, it is considered that they do not have creditworthiness, which in the vast majority of cases involves the rejection of the loan request .
How do you get money without creditworthiness?
Because some of the factors that make up a creditworthiness assessment are highly discretionary, it has been common for a bank to refuse a loan to people who had a good credit history. Fortunately, you can borrow money not only at the bank.
Lending companies also provide financial support to those whom the bank has refused a loan , even if the refusal was based on a lack of creditworthiness. This is possible due to, among others, different customer verification rules and slightly lower loan amounts. So if you urgently need money and the bank refused to help you, contact us! We will consider your application despite the lack of creditworthiness.