Credit for those in debt? Is it possible to get a loan if I already have commitments? It all depends on the value and type of debt quality.
The value of my debt – what does it matter?
The word indebted is an objective assessment of the party that conducts these considerations . For some, there may be one loan that they will have to obtain because they know that they are not able to save that sum of money, and for others it will be another commitment on the already long list. Where does the borderline from which we can say that we need a loan for those in debt begins? When applying for a loan from a bank, the institution will take into account the ratio of our months of commitments to the value of our income, in accordance with the guidelines of Recommendation T of the Polish Financial Supervision Authority. The accepted level is 50%, and in some cases defined by the Commission may be higher (up to 65%). When determining the value of debt, one should also pay attention to the issue of the value of involvement in a given bank. Institutions usually set one top level of unsecured loans above which we will not get another loan.
The quality of my debt – how will it affect my next loan?
In addition to the value of liabilities that we have, the quality of their service is also important. One should not allow a situation in which there are delays in payment of installments or minimum amounts to pay off renewable products, such as e.g. a credit card. If in a situation of high debt value a financial advisor will be able to find a solution, in the case of delayed payments, a loan for the indebted will not be available. Timeliness and reliability in the repayment of liabilities are the basic guidelines for making an initial credit decision on the bank’s side, e.g. by checking credit check databases or business databases.
Consolidation of liabilities can be one way to get out of debt. In short, we take out a new loan with which we pay off our obligations. Consolidation allows you to optimize the installment and period so that we will be able to regulate the installments of current loans.
Consolidation as a way to get out of debt.
The best solution in the case of increasing debt is to combine them into one using a consolidation loan. If you use this form of loan for indebted people, it is an easy way to reduce the value of the monthly installment and the amount of settled liabilities. Thanks to the payment of one installment per month instead of several, we improve our financial condition both in terms of installment value and the quality of regulated debt. Currently, each bank offers in addition to cash loans for any purpose, a solution to combine liabilities into one by means of consolidation.
What support should you choose when applying for a loan? Co-borrower or additional source of income?
In addition to professional support, such as a financial advisor who will choose the best offers available to us, it is worth knowing what if it turns out that our debt is too high and we cannot apply for a loan ourselves. We pay our debts regularly, but there are too many of them that only our creditworthiness is enough. In the case of applications with a refusal due to lack of creditworthiness, banks recommend applying for a loan with another person. Joining another person to the loan, of course meeting the bank’s requirements in terms of income source and the quality of settling their liabilities, allows us to increase our creditworthiness. It is important that this person is not too much in debt. However, if we cannot use the co-borrower’s person, we should consider whether we may have another source of income that we can attach to the loan application, thus increasing our creditworthiness. Income sources such as a mandate contract or a farm run can also have a significant impact as a factor in obtaining credit for those in debt. The more and more popular rental of already owned real estate is also an additional income accepted by banks.
Loan for those in debt and the bank
A loan for those in debt can also be a bank loan. It is worth remembering to apply for a consolidation loan not at a critical moment, but to react earlier than the debt exceeds the thresholds accepted by the financing institutions.