What is credit rating?
Creditworthiness is the ability of a borrower to repay the loan taken out in good time.
Especially in banking. Because every requested bank checks before granting the requested loan whether the prospect will be able to repay the desired loan together with all due interest due to its current financial situation. There are also special organizations that collect data on the solvency of different people and organizations and also disclose them at the request of, for example, banks. And they also operate with this term.
What else is there to say about this term?
Decisive for the classification of the respective prospect as creditworthy is usually the amount of the income, which must be above a certain minimum, as well as the difference between his net income and his regular expenses. This difference must ensure that the interested party will be able to pay the agreed installments. In addition, the presence or absence of an entry with Credit bureau or a similar organization is important for classifying a person as creditworthy or creditworthy. The first variant of the classification must apply to the prospect so that he actually gets the loan applied for. Otherwise, he can expect rejection.
Banks always have a hard time
Mini-loans are very easy to obtain for the self-employed and freelancers. When it comes to loans, banks always have a hard time with this group of people. Nevertheless, a normal small loan on installments for the self-employed is also possible. Since assignment of salary is not possible, the assignment of life insurance is used as security, for example.
It will be a little more difficult for the unemployed. A small loan without income is not easy to obtain. If in doubt, this is only possible with the help of a surety. Offers that advertise unemployed people with a small loan should be viewed with skepticism.