When granting a loan, financial institutions take into account a series of criteria. Having job stability or not being enrolled in a Credit Checker list, are some of the requirements we will discuss. In addition, we will assess the loan that best suits each client: personal loan or fast credit.
Will you grant me the loan?
The biggest fear faced by banks when granting loans is that the customer stops paying. To minimize this risk, banks perform an exhaustive analysis of the client profile. The criteria that the bank reviews are: Monthly income of the applicant, their job stability, bank history and check if they appear on a list of delinquents.
Applicant’s monthly income
As in any loan, what the bank will look with magnifying glass are the net income of the applicant. That is, the monthly fee of other expenses or loans will be subtracted from the income from performing the work activity. The margin must be sufficient to be able to pay the loan fee in a loose way. Let’s give an example:
- Monthly income of all holders: 1,500 dollars.
- Other expenses or loans: 400 dollars (mortgage) + 200 dollars (other loans).
- Net monthly income: 900 dollars
As a general rule, banks and credit institutions do not want the monthly installment of the new loan to exceed 30-35% of the monthly net income. Therefore, for a monthly net income of 900 dollars, you could request a loan with a maximum installment of approximately 300 dollars. Although a priori is the most important requirement, it will not be the only criterion to take into account.
Having a good monthly income is of no use when requesting a loan if you have no job stability. Taking several years working for the same company or taking a short time but having an indefinite contract are positive factors for receiving a loan. The group that has the easiest to ask for a loan are the officials.
On the contrary, if you are unemployed or have a temporary contract, the bank will most likely reject the operation, since the return of the money lent to the client is not insured.
For particular cases such as being an autonomous worker, temporary worker whose contract will become indefinite in the coming months, or you will start working soon, it is advisable to go to a bank with documentation that demonstrates your creditworthiness: last payroll/income, Personal income tax, last payments to Social Security, etc.
Having a positive track record in your bank will always be in your favor when hiring a loan. Your monthly income may not be excessively large, but your manager can assess that you have always been up to date with your payments (the mortgage payment or household receipts, for example) and you are a good customer.
In fact, if you have been in an entity for several years, they will offer you the possibility of contracting a loan with them. Or because they study that “you arrive just at the end of the month” or so that you approach a specific project, such as renovating your home.
If you are on a delinquent list (Credit Checker)
Banks, as a rule, do not grant loans if you are on a list of delinquents. If you belong to any of these lists (RAI or Credit Checker), you will have to resort to quick loans or mini-loans. These products are granted by financial credit establishments (they are not banks) and usually have a higher interest rate than personal loans granted by a bank.
What loan can I contract in my case, following these criteria?
When applying for a loan, there are two different types of clients: those seeking a personal loan and those seeking a fast loan or credit. The personal loan usually has a specific purpose (buying a vehicle, making reforms at home, traveling …) being the banks that offer the best interest rates. For example, in the case of Good Credit Personal Loan, it offers up to $ 50,000 with a nominal interest rate of 6.95% (7.18% APR).
It is a loan without commissions and without the need to change banks or hire other products. In the case of Good Credit, to grant the personal loan requires that the applicant provide documentation proving that they have sufficient monthly income to return the loan within the chosen period.
On the other hand, fast loans are those loans, usually online, that are granted in a few minutes by credit institutions. Interest rates are usually higher than personal loans. In return, they are more flexible in case the applicant does not meet all the requirements mentioned above. Personal loans granted by banks do not usually accept that clients are on a Credit Checker list, while certain quick loans do.