Look for the perfect mortgage
Specialists have checked which banks offer attractive interest rates and at the same time liberally approach the issue of calculating creditworthiness. It turns out that attractive interest does not always go hand in hand with high creditworthiness.
In the particularly difficult situation on the credit market are people who are potentially … the most reliable – single, working and professionally stabilized singles.
Banks do not trust them to such an extent that, For example, in Good Finance and Good Credit Bank a single with an income of 3.5 thousand. USD net … will not receive a loan. And others?
You need to figure out banking strategies
The problem is that some banks treat different customer groups quite differently. The best example of this is Good Finance. Families with an income of 8,000 USD net, he is ready to grant as much as 874 thousand. USD loan – most of all. Meanwhile, the amount proposed by the same bank to our example single was lower than the market average. This is the best example of the fact that there is no general rule and “good” and “bad” banks because each of them has different criteria for assessing the creditworthiness of different customer groups.
So there is no point in suggesting examples from your immediate environment (e.g. that the bank calculated low creditworthiness for someone from our friends). With a different level of income or family situation – the amount you can get maybe completely different.
It is also worth paying attention to the strategy of individual banks. In situations where there is a clear offensive of one institution – it is worth looking for opportunities there. In turn, Good Finance has attractive loan offers, but only for wealthy clients.
It’s not just interest rates that decide
When deciding on choosing a mortgage, we are primarily guided by its interest rate and margin. The latter is now often either very low or simply missing (zero value). However, you also need to remember about other parameters. It may turn out that the bank offers a low-interest loan, but the loan amount itself is relatively low compared to what you can get for more money in the competition.
Individual banks also differ greatly in the assessment of creditworthiness. In an extreme case, the difference in the amount that can be obtained can reach up to 300,000. USD.
How to improve your credit standing?
If even at the most liberal bank we can not get the loan amount we require, we can take several actions to change it.
First of all, it is worth giving up all current credit products, i.e. credit cards and account limits. Even if we do not use them, the banks recognize that we can get it at any time, and then our income could not be enough to pay off all debts on time. In addition, Recommendation T forces banks that they cannot grant a loan if the sum of installments exceeds 50 percent of income (in the case of earnings below the national average) or 65 percent. income (if higher than the national average). From 2012, the new recommendation will further limit this threshold to 42 percent (regardless of income) for foreign currency loans.
Trying to increase your credit standing, we also have other options. We can, for example, attach additional borrowers to the loan, for example, parents or someone from siblings, but … cautiously. Such a solution will not always be effective. And in this case, the criteria of financial institutions must be taken into account.
In all, the new borrower must have a relatively high income, otherwise, the effect will be counterproductive. And in this case, his financial situation will be assessed, i.e., for example, installment purchases or credit cards. And inquiries, even among loved ones, whether the prosperity presented proudly is not a case of credit – it often leads to quarrels and disagreements. This must be taken into account before asking a relative for a favor.
The more so that the bank is obliged to monitor the creditworthiness of its clients throughout the loan period. If one of the people who now offers us help finds himself in financial trouble.