Are you planning to take out a larger bank loan in the next few months? Are you afraid that the current level of creditworthiness will be insufficient for the amount you need? Increasing creditworthiness, how to approach it? It will be good now to prepare for applying for a larger bank loan . We’ll provide some simple tips to help you improve your credit standing to get a larger bank loan in the future.
Home budget and increasing creditworthiness
Each loan application requires the customer to declare monthly maintenance costs . The costs affect the decision that the bank will make regarding the maximum amount of credit available. The cost of living also depends on the city in which we live. Higher will be in a large provincial city, much smaller in a small town of up to 10,000 inhabitants.
Closing credit cards and limits that we don’t use will also be important when it comes to your household budget. Each active product will reduce our credit standing . If they are too big for one-time repayment, it is good to overpay them or include in consolidation when applying for a loan later. This usually frees up the customer’s additional creditworthiness and results in larger amounts being allocated.
Loan with another person as an improvement in creditworthiness
If the creditworthiness calculated by the bank is not satisfactory, you should also think about joining the loan with an additional applicant. A spouse, parent, immediate family or even a third party unrelated to us will result in much greater funding possibilities . Banks decide to grant larger amounts of loans if two applicants apply.
Loan period and increasing creditworthiness
The rule is simple: the longer the loan period, the lower the installment . However, this does not mean that the overall cost of the loan will be lower. The interest rate on the loan will be spread over a longer period, which will translate into higher interest amounts . Most customers apply for a loan for 8-10 years. If the client wants a low installment, he can get a maximum loan period, up to 12 years .
Overtime, higher salary to increase creditworthiness
It is a good practice if you plan to take a bank loan in advance to increase your salary, which will translate into greater credit options . Customers applying for bank loans close corporate loans taken out of the payment. Many people give up additional sports or social packages deducted from their salary. Another way is to do more overtime. The salary raised in this way will certainly translate into greater credit possibilities.
Credit history and ability
The better your credit history, the cheaper the loan offers that banks can offer, which in turn translates into a larger amount that you can get.
It is worth remembering to pay installments on time, without even a day or 2 arrears. If the customer does not have a credit history, it is also worth thinking about buying equipment in installments. This method of creating credit history works best when applying for bank loans later. 6 installments already repaid on time result in a good credit history.
Feel free to contact us , our advisor will help you calculate the maximum amount of bank loans available to you.