Creditworthiness is one of the most important factors affecting the chance of obtaining a payday loan. Financial companies calculate their creditworthiness because of the risk associated with borrowing capital to a specific customer.
The better the creditworthiness, the easier it is to obtain payday loans in certain amounts and at the same time it is much easier to use payday loans available on advantageous financial terms.
Creditworthiness is influenced by the finances of clients applying for a payday loan. In general, customers’ income influences the creditworthiness. However, as part of determining the creditworthiness, the financial liabilities held by customers are also taken into account. The greater the financial liabilities, the much smaller the creditworthiness.
This increases the risk for a financial company affecting the possibility of a situation in which a given client will not be able to regularly pay off a financial liability. It is very important for this reason, before applying for a payday loan, to limit financial obligations.
Security and creditworthiness
Having low creditworthiness, you can always opt for financial products that allow you to secure such a financial product.
You can include both real estate and movables for payday loan security. Real estate, on which a mortgage may be determined, is considered to provide the most security for the creditor. It is easy to recover funds with mortgage security. For this reason, financial companies consider such collateral to significantly increase the certainty of repayment of financial liabilities by clients.
Another security may be movables, which can include especially cars, because a registered pledge can be established on them. Another kind of security for payday loans or credits is the possession of people.
Persons who guarantee payday loans when they have good creditworthiness are able to provide a significant improvement in the creditworthiness of the person who is seeking a payday loan.
Repayment of liabilities
If you have any unpaid financial liabilities, it is good to apply for a larger sum of payday loans or credits to pay off such liabilities.
All liabilities that are permanent adversely affect the creditworthiness. At the same time, before applying for a payday loan, it is worth checking information in the debtors’ or BIK’s databases. This allows a much better assessment of your financial situation. This limits, among other things, the time when it would apply for payday loans in companies where there is no chance of obtaining a payday loan.
It also happens that in the debtors’ databases there is untruth or incorrect information. They can negatively affect the chances of getting payday loans. However, self-checking of information in such databases allows you to modify false entries or to delete such entries that financial or service companies have not removed despite the repayment of a given financial liability.