Wondering at what bank to take a loan? In short, I will tell you one thing – certainly not at first better or not at which service you have been using for years. Why? The key to success is to compare offers, both credit terms and criteria that must be met as a customer. Check where to take a loan.
What are the banks paying attention to?
At the beginning I will check who can get a bank loan. Although banks now require less and less formalities and allow online financing to be taken via a short form, they still have a number of requirements that a customer must meet to get a cash loan. Here they are!
This is the most important criterion for which you will be verified by the bank. Creditworthiness analysis is nothing more than checking your financial possibilities. The bank will take into account the amount of monthly income you earn, the monthly cost of living, which you will have to declare in the loan application (they include, for example, rent / costs of renting an apartment, fixed charges for utilities, telephone, internet, funds you spend on life ) and any current debts you pay (loans, credits, limit amounts and credit card debt, in account, guaranteed liabilities, etc.).
- Credit History
Banks have access to all financial obligations that you are currently paying back but also paying off in the past. Data on this subject is collected in the Credit Information Bureau. What’s more, repayment terms are also visible there – if you are late with paying the bill, paying off your credit card, installments for the loan or borrowing, it will be marked accordingly. When considering your loan application, banks send to BIK a request for your credit history to assess how you are dealing with the repayment and to assess whether you will pay the next loan on time. If in the last two years you have had late repayment obligations (over 30 days) or you have not repaid your loan, you will get a negative credit decision in the bank.
- Borrower’s age
It is also important how old you are. Often, banks or non-bank companies advertise that they grant loans to people who are 18 or 21 years old. In practice, however, at this age you can only count on a non-bank loan. Why? Your credit history will probably be zero, which is why you will not be very successful in the eyes of the bank, because it will not be able to estimate whether you can pay the debt on time. Older people will definitely have trouble getting financing for a longer repayment period. For example, a sixty-year-old will certainly not receive a loan for several years – it is too risky for the bank.
- Monthly income
Monthly earnings are equally important. On their basis, the bank will determine the maximum loan amount. It will also take into account your monthly expenses and the number of people in your household to analyze whether you can manage paying the installment.
- Type of employment and seniority
The most favorable situation is when you work based on an employment contract of indefinite duration. Although it is equally good when from min. a year you receive remuneration from one company, working on a specific work contract or contract. The longer you work in a given company, the better you will be in the eyes of the bank. Also, people who run their own business should not have a problem, although they should be adapted to the requirements of a given bank – some of them provide financing to people who run a business for at least a year and others from min. two years old. Pensioners also have a chance to get a bank loan. However, they must have proof of payment of an annuity and choose a product with a shorter repayment period.
If you are a freelancer, you can count on better credit terms. Why? People exercising public trust professions receive regular income and stable employment, which makes them considered reliable customers. Doctors, police officers, firefighters, lawyers, notaries and academic lecturers can count on loans for professional services. Remember that there is no clear answer to the question where to work and how much you have to earn to get a loan.
What documents should be prepared?
Banks have different approaches to providing documents needed to obtain a cash loan. If you apply for a lower amount, i.e. several or several thousand zlotys, then there will certainly be fewer formalities. If you want to get a loan for a higher amount, i.e. several dozen or several hundred thousand zlotys, get ready for a larger number of documents that you need to have. Most often, banks require the presentation of such documents as:
- correctly completed loan application,
- valid ID card,
- last PIT tax return,
- account statement (from the last month or three months),
- certificate from the employer regarding employment and remuneration,
- consent of the spouse,
- certificate from the employer about the period of employment,
- an additional identity document, e.g. passport or driving license.
Which loan parameters should you pay attention to?
As I mentioned in the introduction, you shouldn’t be tempted by the first better loan offer. Differences in the cost of loans (for the same amount and period) in different banks may even amount to tens of thousands of zlotys. So pay attention primarily to:
- loan interest rate,
- commission for granting a loan,
- credit insurance,
- the need to take additional banking products,
- additional fees, e.g. preparation fees.