How does my credit report ?

Have you ever to apply for a loan? Currently, it is usual for people to meet the loans to different needs. That is one reason users of home loan facilities, vehicles, credit card continues to increase every year.

Although the application process is simple, in three credit offers we will in fact not all applications go through the creditor be smoothed. Why is that?

How the choice of a partner, the lender has certain criteria that must be met by the prospective borrower. These criteria are the five factors, known in the financial world as 5 C.

First Character.

Character is how you as borrower behavior. It is considered very important because it will determine whether you are acting in good faith to pay or is about not pay during the loan period. Available information on the characters in the debtor countries of information systems (SID), which is managed by the State-owned bank. This information, the process of the review is known by the name.

Because of the old and the debtor is still a candidate, you are entitled, what know your credit report card at this time. The document made it clear any financial transaction by a person be recorded.

Collectability of the aspects of those cards can of: well, special mention, doubtful, loss. Classified their credit as distressed, if loans including the category "special mention" or worse.

Nevertheless, you must belong not on the black list of the National Bank as the term only in connection with check or checking account used. SID will also save you your data for 24 months, based on reports by various banks and credit institutions.

Typically, your application will be rejected if the value of the audit process of related non-performing loans be. Creditors will be also careful when you "behavior does not have a row as borrowers, because it is quite difficult for them like that" to predict you later.

Second Capacity.

You should always ensure that the monthly installments can be paid on time. Ideally has a budget of only mortgage obligations productions with a maximum of 35% of monthly income. You must bear in mind that this value is the total, so the sum of all monthly payments please by mortgages, vehicles, up to the mobile phone.

Thirdly, Guarantees.

The higher the value, you provide security for a loan, the greater the points assessment for you. However, I recommend you to assets as collateral, to use its value over 100% of the loan value.

Fourth Conditions.

There are some conditions that you meet the standards, call the maximum term of the loan, the minimum age to get credit, and the minimum amount of credit must. These terms and conditions are set by the individual creditors and the conditions may vary.

Fifth, Capital.

In addition to the ability to pay, is the amount of the fixed assets, which have taken place at that time also a determining factor. The more, the balance of savings deposits, time deposits and other investments assets increases your chances on a loan. That is, why are there some banks could even loans with interest rates below the average, if you have a certain amount in the Bank the same track record. Yes, of course it is, it's also the money, make your money!

Understanding the five criteria of credit rating is very important for everyone; especially you are planning or already have a loan. Process should be reviewed and now also done so that the data about themselves itself exactly and is renewable.