The solvency is an indicator for evaluating the ability of someone to repay a loan. Each bank has its own way to evaluate the creditworthiness of its customers. However, we will explain here the basis to calculate your credit solvency.
What is the criteria of credit solvency ?
The credit solvency of a person depends of course on its financial position, but not only. In fact, credit solvency depends on:
- Income: indeed, the higher the monthly income of an individual is, the higher its rating will be considered "good".
- Expenses: having high income is not sufficient to be considered "creditworthy". It should also not have to much spending, relative to your income.
- Job stability: generally, an employee who has worked in the same company for many yers has more chances to get a credit than someone who changed all the time.
- Family situation: this factor, little known a priori, is yet so real. A family man, married with children, will often be better considered by banks (in the case of a credit application), than a single mother for example. For that reason, credit agencies need to know your marital status.
- The antecedents: a person who already has a credit history (without any problem) will be considered better than someone whose loan is the first one.
Credit solvency and loan application
More you will be considered a solvent person, most likely you are to see your loan application accepted. Furthermore, in case of acceptance, you will be able to get better conditions with a good credit solvency.
How to check my credit solvency?
If you want to check your credit solvency, do not hesitate to ask for a free non-binding loan offer. Fill in our online form. Our team will be glad to answer you in the shortest time to study your situation and tell you more about your credit solvency.Ask for an offer