What is the credit standing at the lowest national?

Every day, banks meet with a diverse client profile that asks for different amounts of money for different purposes. And although theoretically anyone can apply for a loan, the banks have a precisely defined model of the desired client. Do you have a chance for a commitment with low earnings? What is the credit standing at the lowest national? Let’s see.

Today, advertising messages surround everyone. They attack from the TV, radio, smartphone and computer screen, going to the bus, traveling by car, waiting for the train, and even while shopping. Financial sector advertising is undoubtedly clearly noticeable in this group. Loan companies and banks ensure the proper promotion of their services, promoting their products in various ways.

From the advertisements discussed in the text of banks, there is a message about easily available loans and bank loans. In response to the expectations of customers who want today faster, easier and more convenient services to acquire, banks are trying to simplify their offers. Promotional offers, eg loan offers, encourage low APRC, provide bank loan offers for lower amounts, etc.

It should not come as a surprise that such a message, which is commonly found, encourages a diverse group of clients to use banking services. Loans attract the attention of people with both higher and lower earnings. They have higher and lower property status. People with completely different professions, different sexes, marital status and ages. The fact, theoretically, any adult person with income can come to the bank.

In practice, however, banks provide in their regulations for strict rules that each customer must meet in order to be eligible for a loan. This results from the provisions of the banking law, which specifies, among others rules for granting loans and exchanges information that must appear on the accompanying agreement. Adding the regulations of given banks to this, it turns out that the group of clients desired by the bank is extremely strictly defined.


Creditworthiness is the basis

Creditworthiness is the basis

Banks’ requirements for clients are quite extensive. It is worth highlighting the factors that have priority when verifying before granting a loan. First of all, it’s creditworthiness. The Bank assesses it primarily on the basis of information it checks in the Credit Information Bureau (BIK). This register collects data of millions of Poles on the state of repayment of liabilities, debt and timeliness in repayments. Banks treat it as an indispensable source of data when verifying the client’s financial condition. Based on the entries contained in the BIK, an assessment will be made of how well the facility can trust a given client.

By checking the BIK, the bank will check how the repayment of eg bank loans, loans or payday loans looked like in the past. He will also seek information on possible debts as well as late repayments. Overall, it can be decisive when deciding on a loan. In case of negative entries, the bank may reject the loan application. However, if the consumer situation in BIK looks good – the path to credit will be much simpler. Sometimes, some banks may still use data in other financial registers, such as BIG (Credit Information Bureau) or ZBP (Polish Bank Association).


What is the credit standing at the lowest national?

What is the credit standing at the lowest national?

True, creditworthiness after verification at the Credit Information Bureau is an important factor in the process of applying for a loan. However, in the case of positive verification – BIK is still not everything. The bank still checks, among others financial condition of the consumer. The amount of monthly expenses and the number of dependents are assessed. In addition, also the amount of other liabilities (loans, bills, insurance premiums, fees for housing). Their amount will be compared with the earnings about which the bank will inform you by providing relevant certificates (eg type of contract, its duration).

Also, by presenting relevant documents on, eg seniority and duration of the contract, the image of the consumer’s financial capacity is clarified. Here, the bank checks whether the requested or any other loan amount will be available for given income (or PIT submission for the last year) and total monthly expenses. There is no doubt that the higher the income and the lower the fraction of expenditure, the better the full creditworthiness of the consumer is assessed.

So, does the person earning the national minimum have a chance to get a loan? Yes, if it is a cash loan and it has good credit standing based on entries in the BIK. It must also not have excessive monthly expenses, allowing monthly payments to pay off loan installments. Their amount will of course be relatively low, which will translate into a relatively small amount of credit. The fact is, however, that a person earning the lowest national can get a bank loan.


What is the creditworthiness at the lowest national – approximate loan amount

What is the creditworthiness at the lowest national - approximate loan amount

As already mentioned above, the necessary conditions for the person earning the lowest national is good condition of entries in BIK, as well as low monthly expenses allowing repayment of the loan installment. In addition, the income must be obtained from a legal source with an appropriate duration of the contract. So if there is a possibility of obtaining a loan, what amount and what parameters can you count on?

Here it will be difficult to present an example that will be meaningful for every consumer. After all, those earning the national minimum ($ 2,250 gross / $ 1,634 net 1 in 2019) have different monthly expenses and other obligations. This group is also diverse in terms of dependents, marital status and other similar factors. In the example, we will present random values ‚Äč‚Äčadopted for the purposes of this text.

  • Gross income – $ 1634 (national minimum in 2019 in net terms).
  • Costs of living – $ 600.
  • Other financial liabilities – $ 0.
  • Fees for the flat – 700 USD.
  • Insurance premiums – 10 USD.
  • Other expenses – $ 0.
  • Loan interest rate – 12%.
  • Loan duration – 12 months (1 year).

Considering the above-mentioned values, the consumer can get a cash loan with the following parameters.

  • Credit amount – 1215.55 USD.
  • The amount of monthly installment – 108 USD.

It is worth adding that the cost of the loan also includes commission, interest rate and interest.


Timely loan repayment improves your ability

Timely loan repayment improves your ability

It is worth remembering about timely repayment of liabilities, diligently paying off subsequent installments of the liability on time. The client shows the bank that he is a trustworthy borrower. The BIK also has an entry with a positive history of repayment of liabilities, which means that in the future, when applying for another credit or loan, the chances of getting a commitment on more attractive terms will increase.


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