Banks are required by law when buying land, building to the creditworthiness or purchase many people must be alien to finance a part of. They are dependent on a reasonable credit or a serious financing. It is not always easy to get them, that’s why some prerequisites must be met. One of the conditions for the grant of a loan is the creditworthiness of the applicant. Should this not suffice, must one more person with stick, leaping up in the case of a payment failure. Generally, the credit rating is an assessment of the payment ability and willingness to pay. These can both be queried for individuals as well as businesses. Depending on the credit risk is higher, the more likely it is classified as economically viable, i.e.
it is assumed that the person or company can pay their bills on time and want and pay with a very high probability”, explains Marco Fendt, operator of the Hausbaublogs bauunternehmen24.net. Not only on bank loans, but some trade activities, the credit is a decisive factor, as for example, when a mobile phone contract or if you ordered in the shipping trade on account. Robert J. Shiller often addresses the matter in his writings. There are teleshopping provider and online shops, a purchase by cash on delivery is not possible, because they risk to overestimate, that a package is not that negative credit rating and the seller on the costs remaining seated. In the anonymous mail order credit plays so appreciate a large role in a future or current business partner with regard to payment probability estimate”, says Marco Fendt. Also instalment payments in the mail order business with or without the involvement of financial institutions are possible only with correspondingly positive creditworthiness check. If the probability is low, then the credit risk is correspondingly high.
There are different methods that perform the credit check. The most common procedures are based primarily on economic theories and statistical values. A credit verification can be from different causes. Banks are even legally obligated to credit check. It must regularly check the economic conditions of its borrowers also during runtime. Proof of income, profession, registration address, concerning preconditions for the calculation of the credit are the property. Usually, even a so-called budget is created. This plant is used to classify objectively and realistically, if you can pay the monthly instalments with the existing income. But not only objective criteria but also the personal assessment of the banking supervisor can play an important role here. Also the behavior most and with the own account is doing. Someone constantly exploiting its account framework, must be rejected direct debit orders or charges due to lack of funds are not possible, which affects negatively on the credit screen of the customer”. Marco Fendt explained. To learn more about, what is to keep in mind when assessing creditworthiness, gets under construction financing /… additional information about. Marco fendt