Loan requests occur daily in banks, but not every request ends with a payout. The bank itself can decide whether or not to grant the loan. This is important because this is the collateral, which brings the borrower. Only if the loan agreements can be fully adhered to does the bank make the loan. To do just that, credit checks are made by the bank. After submitting the loan application, it comes to the credit check in order to assess the risk of default.
Credit check and creditworthiness
Individuals, for example, who want to buy a property, have to bring a good credit rating to get a loan for the purchase. One speaks also of the creditworthiness, which is very important for the bank. This first considers the personal and the economic creditworthiness of the applicant. Only then can the bank know whether the borrower can raise the necessary financial resources. In fact, these not only have to be available for the repayment installment, but also for the monthly interest rates and the incidental purchase costs. Only in this way does the bank also earn the credit.
Carry out the credit check via the household bill
In order to show the customer or borrower whether he can afford a loan of the desired amount, a common household bill will be drawn up. The credit check is therefore in no case secret or hidden. Finally, the borrower also wants to know if the loan is affordable at all costs. So now the monthly income is used as the basis for the credit calculation. In this case, it is not irrelevant for the bank whether it is a temporary or permanent contract or whether the borrower is a civil servant and receives possible special payments. This contrasts with the expenses, which are often calculated per capita by a lump sum. Expenditure on cars, rent, food or children must continue to be secured. In order to prove what revenue is available, the bank can demand various documents.
Determine personal suitability
In addition to the financial suitability, the bank wants to assess whether the borrower is personally suitable to stick to agreements. It often comes down to very personal assessments, so it can not hurt to leave a serious impression in the application interview. The bank will also look at how the payment obligations of recent years have been met. Lavish ways of life are not forbidden, if you can afford it, but leave a threadbare taste with the lender. Of course, the SCHUFA helps here to be able to decide correctly.