Credit is a great tool to fulfill your dreams and goals, such as buying a house, a car, paying for our university studies or even capital to start a new business. In the modern world the use of credit is integrated into daily life. However, it is vital to use it wisely to establish a solid credit history and maintain good financial health.
Obtaining a loan can be relatively easy if you have the right characteristics that accredit you as a responsible person with the ability to pay. If you want to know what are the elements that banks take into account to grant a loan, read on.
1. Payment capacity
One of the first things that financial institutions do is check your income, so they ask you questions such as: if you pay rent, if you have your own car, if you study at the university or if you have people dependent on your salary as children or parents. You just have to present your statement to prove that you have the ability to dedicate no more than 30% of your income to the payment of your credit. Remember that the less “risky” you are for the bank, the greater your chance of getting a loan.
2. Work stability
If you work for a company, you must submit a copy of your employment contract and your last three statements. The idea here to show that you are a responsible, committed and reliable person with the ability to pay credit fees. That is, you are able to keep a job and change jobs only when you have compelling reasons to do so. That is why periods of work termination in your employment history can be a risk factor for banks.
3. Credit record
Before granting a loan, most banks evaluate your background to determine if you can pay the requested amount and interest. A credit record is the cover letter that the bank has about each of us. This measurement serves to prove that you are a low-risk person and therefore financial institutions can lend you money with lower interest. With each loan we obtain, we create our credit history throughout our lives.