Do you know what are the things in which banks are set to grant loans?
“One of the best letters of introduction that you have when you ask for a loan is your past experience with past credits such as the cell phone payment plan, a small credit card, and so on.”
Because it is important? Your past behavior with small credits means that you are not a stranger to the financial system; and it also shows that you are a trustworthy person who has managed timely payments.
Ability to Pay
Checking your income is simple when you are a natural person. It suffices to present a payroll receipt or a statement of account to demonstrate that you will have the capacity to devote no more than 30% of your income to the payment of your loan.
“That’s why financial institutions ask you if you pay rent, you have people dependent on your salary – as children or parents -, as well as other consumptions so as not to get into debt and so you can continue paying.”
If you are a moral person, for example a company, the criteria are similar. To calculate the payment capacity of a business, the financial institutions look at the income that the company had in the last year, that is well constituted before the Tax Administration Service (SAT) and that they have not presented losses or technical bankruptcies in Last fiscal year.
In case the company has shareholders, the bank will check the credit history of those partners that have a participation of at least 10 percent to determine the creditworthiness of the company.
How many times have you asked for the loan?
Imagine you find a house near your work on offer and go to the bank to ask for the credit but they deny it and the same day you go to another financial institution, but they reject you again. This insistence is recorded in the system and makes you see “desperate” for the money.
“The best thing you can do is to investigate all the credits that the banks offer you and go to your first best option. Then, wait between 15 to 20 days to resort to the second option on your list. “
Your Score in the Credit Bureau
This tool has a measurement that is represented in a kind of speedometer that tells financial institutions how your behavior has been in the past. That is, when your speedometer is green, it indicates to the banks that you are a good credit subject.
“This measurement serves to demonstrate to the financial institution that you are a low risk person and therefore can loan you money with lower interest rates. That is, the better score you have in your credit bureau, the cheaper the credit will come out.”
Maybe you have a great credit history and good income, but if you are 85 years old; it is very difficult to get a loan with terms over 10 years old. In case of granting it, the bank can request the presentation of a guarantee, a person who can take charge of the payment of the debt in case of death.
The Credit Bureau is a register used by financial institutions to know the ability of a person to pay a loan. If you have a loan but the monthly payments become complicated; the best thing to do is go to the bank that authorized the capital to restructure the monthly payments or; if necessary; negotiate a withdrawal to only pay a fraction of the debt.
“What is more important is that the bank and the Credit Bureau record; that you had the intention of solving your situation and that you never intended to stop paying”. The rating of the Bureau is updated every 10 days.