When a bank analyzes a credit application dossier, it studies in detail the beggar’s situation. This study results in a score that indicates the borrower’s overall situation and determines whether or not his application will be accepted as well as the conditions under which the credit will be granted.
How is scoring calculated?
Each bank has its own method of calculation and its own scale. This indicator takes into account not only the borrower’s income, but also several other variables that may indicate risk, or lack thereof, in case of granting credit. Thus, the scoring calculation takes into account the following elements:
- The rent, combined with that of the spouse, if any.
- The rent paid (or the mortgage charges, in case we are dealing with an owner)
- Health Insurance
- The locality (since the cost of living varies from one region to another)
- The family situation (marital status, number of children and their ages)
- The type of employment and the stability of employment (since when you work for the same employer)
- Nationality and / or work visa
- The age
- Background or codes ZEK (credit information center)
What is its influence?
Scoring is ultimately a simple indicator that reflects the level of risk the bank takes by granting it a credit. It is this level of risk that will determine whether your application will be accepted or not . Thus:
- A very low scoring will lead to a refusal: the credit application will be considered very risky.
- A low scoring will imply less advantageous loan terms.
- A high scoring will imply the best loan conditions.
How to know your scoring?
The scoring calculated by the banks for a credit application is not communicated: neither to customers nor to potential intermediaries. However, it is worth noting that in addition to banks other bodies also propose a risk indicator. This is the case of companies such as “Criff”, which specializes in collecting data and conducting scores, used both for the study of a loan profile and for other things.
Want to optimize your scoring and have your order accepted?
Specialized in the intermediation of bank credits since 1999, we have the necessary experience to help you carry out your projects. Our team will take care of your dossier and optimize it in order to obtain the best scoring possible from banks and scoring agencies. That way, you can get the best loan conditions and have your application accepted. Want more information about it? Contact us and ask for free, no-obligation advice.