Financial opportunities
The borrower's financial solvency is the second parameter that influences the approval of the application. To determine how much money can be issued, the bank looks at income and debt load. The total amount of payments on all loans should not exceed 50% of income, otherwise the bank will not be able to approve the application.
A credit card with a high limit can be a problem, as it significantly increases the debt burden ratio (DBR). If you also have other loans, the likelihood of approval will be even lower.
Before you apply, calculate your DTI. Add up all your monthly payments on loans and credits and divide the resulting amount by the income you can prove. Multiply the resulting amount by 100 (expressed as a percentage). When calculating, also take into account the monthly payment on the new loan you want to get. If the DTI is below 50%, you can apply. If it is more than 50%, it is better not to waste time, but first prepare and reduce the debt burden.
In addition to the income and credit history of a potential belgium mobile database borrower, banks also look at other factors. These include:
education and profession . High qualifications in a sought-after profession allow you to quickly find a job if you don’t get along with your current employer. The bank has fewer risks with such a borrower than with workers in less popular fields;
the presence of property . Even if it is not pledged, it still serves as an additional guarantee that the bank will return its funds;
marital status . It is believed that banks trust borrowers who are married more. An important condition: the partner must also receive income.
presence of dependents . Children and other persons whom the borrower must support are assessed by banks as an additional expense item;
age . This is a controversial criterion, but some banks still take it into account, since it is important for them to reduce their own risks. Some financial institutions do not give large loans to very young borrowers. Also, the likelihood of mortgage approval decreases if the borrower is about to retire.
How do banks treat credit cards?
Each bank has its own attitude towards credit cards, but first of all they still look at the CI. It is difficult to find a person who has never had a single overdue payment. The reasons may be different: a technical delay in payment, financial troubles, and sometimes just a bad memory. Overdue payments of several days usually do not become problems when receiving loans, including mortgages. But if the overdue payment lasted more than 90 days, the probability of refusal is close to 100%.