Banks, when granting loans or credits, are quite meticulous in examining their creditworthiness and if they find it insufficient, the client will be denied. Usually then it goes to loan companies. The criteria for assessing creditworthiness by financial institutions from the non-banking sector are different and, similarly to banks, they are not disclosed.
Can you get a loan without creditworthiness?
If you would like to know what creditworthiness is and what has influence on it, you will find the answer at the bottom of the page. In the article, we’ll tell you which loan companies should send your application to.
In short answer to the above question: you can get a loan without receiving income, which is an important parameter of creditworthiness, but it is not so easy. The creditworthiness itself is, in principle, always estimated, however in different ways, and the result can be treated differently.
Non-bank companies, when assessing a loan application, take into account several factors (apart from meeting formal conditions such as, for example, appropriate age or Polish citizenship). The probability of receiving a loan is naturally the higher, the better we can demonstrate (obtaining income or benefits, positive assessment in Retrodatabase, no entries in debt registers such as PAR ).
When testing your creditworthiness, the importance of earning income is greater in the case of long-term (installment) loans. At the moment, the history in Retrodatabase or the presence in debt registers is more important.
In general, the average acceptability of non-bank loans is currently at the level of 10% -50%. The level of acceptance varies from company to company – each has its own application assessment system and criteria for granting loans (eg without a good credit rating). In one company it can be 5%, in another 70%.
Or maybe a social loan?
This is an interesting solution, yet relatively young in our country, but still growing in popularity. Social loans operate on the principle of an auction – a person who wants to take out a loan presents his offer (offers “auction”, where he provides information on how much he wants to borrow and on what percentage), and then waits for investors to answer – people who are willing to lend money to others certain conditions.
It is worth emphasizing that it is sometimes a very financially advantageous solution compared to loan companies, but definitely harder to achieve – the admissibility is quite weak.
A loan from relatives
Naturally, this is not an alternative to everyone, but it is worth remembering that you can ask your family or friends for financial help sometimes. In this case, there is no verification of databases or checking creditworthiness – just a conversation. However, this solution also has its drawbacks – when deciding on a loan, it is worth considering which option will be the most advantageous.
What is creditworthiness?
Before we analyze where and if we can get a loan “without creditworthiness”, it is worth asking what it actually is. According to Polish banking law, creditworthiness is “the ability to repay the loan taken with interest at the dates specified in the contract. ” Simplifying, a loan / bank company examining creditworthiness before issuing a decision checks whether the customer will be able to pay off the liability. Risk calculation can be based on several factors:
- income received (for work, retirement, pension, social benefits);
- customer profile (age, occupation, number of dependents);
- credit history (number and amount of liabilities paid, their timeliness – such information can be found in Retrodatabase);
- presence in debt and business registers;
- current financial obligations.
As you can see, our credit standing is affected by various circumstances. People who want to get a loan without the ability in the bank (receive a negative decision), most often go to loan companies – they are more expensive, but the chance for a positive decision increases.
What are the problems with creditworthiness?
On this topic, it is also worth considering why our financial situation is not the best. Of course, the simplest answer will be “because I earn a little, and the cost of living is high”, but it will not help to solve this problem.
If we look at earnings, let’s think if we can change them in some way (new workplace, raising qualifications, taking over new responsibilities, changing the industry) – it may turn out that we do nothing with our “low” payoff. On the other hand, there are costs of living – you can almost always find expenses that we incur, and we do not need them – their reduction will allow for savings, and in the long run to improve your creditworthiness.
Looking at this problem as a social issue, one may assume that it is partly due to the lack of adequate financial education and lack of practice in managing the home budget. An interesting paradox is the fact that most people do not like and do not want to get into the subject of their finances, and on the other hand, devote a large part of their lives to obtaining funds.