Creditworthiness of consumer credit – What to pay attention to?
Consumer Credit and Credit: Loans are two classic problems: First, the bank does not put the money out. And then she insists on paying back.
Joking aside. If you need a cash injection, you can do without a nerve-wracking and annoying obstacle course. This is generally the case when searching for credit. Of course, this also applies specifically to a consumer loan, although here the classic loan search is omitted. So what should you look for before making a binding loan request? What increases the credit rating and reduces the residual risk?
Let us take the role of the bank for a moment. Then it is clear that the creditworthiness must be checked – ideally fast, cost-effective and reliable. Especially with a consumer loan, which is roughly a installment payment for a larger purchase. It can also be handled as a credit line through a so-called current account, which does not change the balance of the balance by installments. But since this is usually a personal loan of a few hundred or a few thousand euros – the maximum loan amount is generally around 25,000 euros – and because no one is shopping for a welcoming flat screen TV or an expansive sofa with an hourly credit check This must be done quickly.
How predictable is the calculation of creditworthiness?
This is done by computers and their algorithms. The so-called geoscoring has fallen into disrepute. For what does general payment behavior and purchasing power in the residential environment have to do with a specific borrower? Are not these rough probability values, which also reproduce prejudices ? But the postcode or, more precisely, the residential address are also quickly queried. And the notorious Debt Atlas does not come by any chance…
Equally unfair is the influence of the first name, even if certain names may be popular among low-income parents. Are Kevin and Chantal with “wrong” zip code chance in the credit check?
The good news is that credit institutions should not rely solely on geographic data for credit checks and consumers should be aware of the use of that data. In addition, there is the legal right to obtain information free of charge from credit bureau, Creditreformer, Bundert. once a year. It therefore makes a lot of sense to obtain this information before the spontaneous use of a consumer credit fails.
Reliability creates creditworthiness
In general, for example, a non-binding credit inquiry would be favorable since it does not entail a credit bureau entry. Many credit cards and frequent credit requests affect the credit rating as negative as affidavits, bad customer history and payment, debt collection, bankruptcy and imprisonment.
Many criteria can also be queried with a consumer loan – and some are queried. Long-term and positive contractual relationships have a favorable effect on the credit rating. Not only in the financial sector: The less often someone moves or changes jobs, the more advantageous this is with a loan request. Well, who works reliably and is not in the probationary period.
But occupation, income, budget surplus, assets or guarantors are data outside of credit bureau, which the bank or the credit institution asks for a more comprehensive consideration. And of course there are also positive credit bureau entries : for example, good payment experience and smoothly repaid loans. Even those who are ready for the credit bureau clause, collects plus points in consumer credit.
Another major advantage arises online at comparison portals : banks often offer more favorable online conditions anyway, especially about loan comparisons.
And if the bank conducts the credit check as a so-called condition request, this remains invisible to other banks at the credit bureau and thus acts for the future neutral in credit rating.
Conclusion on creditworthiness and consumer credit
A positive credit rating can therefore be prepared to a certain extent – with a serious curriculum vitae, exemplary purchase and payment morality, but also with a non-binding as well as successful credit check and your own credit bureau request. This also applies to a consumer loan.