With the help of a cash loan, individual customers finance unexpected expenses and make purchases that are not possible when they have funds only from one monthly salary. Before making the final decision on which product to choose, check the consumer credit ranking.
Ranking of consumer loans is a useful tool available online. It allows you to compare even a dozen or so bank offers. In the ranking, we receive, among others, information on the cost of credit – APRC and the amount of the monthly installment. It is also worth using other available financial tools, e.g. loan calculator or loan installment calculator. However, it should be remembered that the first values included in the rankings are averaged information. So what can cause our cash loan to be associated with higher or lower costs?
Monthly income and expenses
The most important factor that influences the decision to grant or refuse a loan is creditworthiness. What is she Simply put, it is the ability to repay the obligations incurred in installments together with interest, within the deadlines set by the bank.
The bank determines its creditworthiness by comparing our income and expenses. If their difference is enough for us to pay the monthly installment, we’ll get a loan. The bigger the difference, the more credit we can get. When we look for information, the consumer credit ranking will indicate the amount that will be just an example. It will not necessarily be within our reach.
Credit history, i.e. customer credibility
Before we receive the offer, the bank will thoroughly review our previous credit history. This means that it will check whether we have taken out any loans in the past and whether we have not been late paying installments.
It does not necessarily have to be a different cash loan. The bank will also check whether we regularly repay credit cards and limits on bank accounts. This information is stored by the BIK database, i.e. the Credit Information Bureau.
Negative entries of arrears or unpaid debts can have a real impact on the interest rate, the need for additional security and the occurrence of other additional fees. In cases of very bad credit history, the bank may even refuse to grant a loan.
The ranking of consumer loans is a useful tool that facilitates the comparison and evaluation of loan offers provided by banks. With that in mind, it’s good to use it.