Scoring, or how the bank assesses us
Scoring, which means “scoring” from English – is one of the key elements that determines on what conditions we will receive a loan or whether we will receive it at all.
At the beginning, however, it should be mentioned that the issue of “scoring” in banking can not be explained exactly as a score, because it appears in itself as a separate factor (colloquially: scoring in BIK).
So what is scoring? Simply put, it’s a summary of our data, based on which the bank assesses us as a customer. Each bank gives its own value to particular data, which is why we will be a desirable customer for one and an unwanted customer for another.
Let’s focus on what parameters are assessed when applying for a loan:
Credit history in BIK
This is actually the basic issue that determines the possibility of obtaining a loan. Even if all the other parameters are perfect from a bank’s perspective, a negative credit history will turn it all to dust. Each bank, when borrowing money, strives to minimize the risk of delayed return or even loss of funds. Seeing a person who in the past had delays in repayment, debt collection, bailiff – usually at this stage ends the assessment. Of course, we cannot throw delays in repayment into one bag with debt collection or bailiff attachment, because the current BIK system will show both a 1-day delay as well as lasting several dozen or several hundred days. This topic will be dealt with in the next post.
Each bank in its lending policy clearly defines the minimum and maximum age of the borrower. The lower limit is naturally 18 years old, but more often than 21 years of age gives us the opportunity to get a loan. The older the customer, the better – because usually such a person is more professionally stable, has a credit history, and above all – a bank can verify such a person more accurately.
The maximum age is the upper limit which the customer cannot exceed when the loan is repaid or at the application stage. Here the discrepancies are much larger, because some banks lend up to a maximum of 70 years, some even up to 80 years old, and there are also those that have no upper age limit – however, here with advanced age people, the key may be “good scoring “.
The above parameter is determining the ownership of the place of residence. The most common are: ownership, rented, with the family, communal or condominiums. Of course, owning a flat has the most positive effect on our scoring. It does not matter whether it is charged with a mortgage or not (for scoring itself, because for creditworthiness as much as possible). Your own apartment shows a kind of financial stability and allows you to locate the customer with more accuracy who, somewhat jokingly, has nowhere to return to.
Housing status with a family can be found most often among people under 30 years of age. They usually live with their parents. Of course, there are cases when we live with a family member who is the owner of the apartment, but is not a parent. Cases vary.
The last most common type of housing status is a rented flat. Especially nowadays, when migration after work is very frequent, at the beginning most people decide to rent. It is also a common form of residence for young people.
In this case, the matter is simple. The higher it is, the more favorable it affects the assessment by the analyst or the banking system. We see a gap here because we think it is better to have the proverbial “profession in hand” and vocational education than to graduate from high school with secondary education and work in various industries without knowing exactly what we feel good and what we want to do in our professional life .
Is it better to be a bachelor or a happy spouse? This question has no clear answer, neither in banking, nor in the life of J Here, however, we focus on this first field. Banks better evaluate people who are married, especially those who have joint property. All because in the event of cessation of repayment, the spouse, even if he is not a borrower, is also responsible for timely repayment due to the community of property, and the spouse will eventually report to the bank if the other half suddenly sinks underground. The other side of the coin is the need to give consent to your spouse for specific amounts of credit, but we will deal with it in a separate entry.
The status of a bachelor does not have to be explained too much. There are, however, informal relationships, called by banks “free relationships” – and here a curiosity, because being a bachelor in a free relationship, in some banks the system will better assess being single, and being in an informal relationship.
There are several issues under this issue.
The first is our employer. If it is a state-owned enterprise, the state administration, i.e. budget – great. If it is a large company employing several hundred people – also good. Worse, if they are small companies, small companies or private enterprises – then our scoring will be slightly worse.
The type of employment is also important – it is best if it is an indefinite employment contract, which lasts longer, the better. Fixed-term contracts are accepted, but naturally, from the bank’s perspective, this is worse income. The lowest in this hierarchy are the mandate or specific work contracts.
Other important income-related factors that may affect scoring include: industry, position, salary, whether we receive the impact on the account or in hand
The above factors are just a few components that make up the scoring. Unfortunately, most of them at the time of application – we have no influence, because we will not change the facts in one day. It is important to properly prepare for such an application in advance. It is worth taking the above aspects into account when planning to apply for a loan. However, if this time is not available and the loan is needed immediately, it is worth using the services of experienced experts who know the procedures and requirements of individual banks and know which banks in a given situation will define the client much better than others.