When you want to borrow money and fill in your application, it always says that a usual credit check is done. But what does this mean? Is it always done the same way? Is some credit reporting company nicer than others? Does Fast Loan Make a Credit Check?
The truth is that the conditions and requirements of an application process can look a little different. All loans do a credit check, but in different ways.
Credit testing reflects your ability to repay
Under the Credit Act, the lender must make a credit check regardless of the loan amount. The credit check is done to see if the borrower is expected to be able to repay his loan with interest and amortization. This is important partly for the lender, in order to be able to determine the risks of lending a loan, but also a good guide for the applicant himself, to see if you really have the condition and opportunity to repay the loan.
Easier loans = Simplified credit testing
A credit check can partly consist of a credit report being taken to see the applicant’s income, if they have any guaranty and other debts and loans. The credit report also shows any assets and liabilities and payment remarks with the Corona Prosecutor.
We apply for a loan or credit for a sum of less than half a base amount, so it is enough to do a simplified examination.
Not everyone can borrow money
The bank decides whether a loan should be granted and whether the applicant’s repayment ability is good or bad, the bank has the right to refuse a loan.
A lender who says that you can borrow money with a payment note does not mean that you can borrow money if you have a payment note, but that with this lender you have the chance to be able to borrow money when other banks said no. However, customary credit testing and assessment of future repayment ability are always done.
Easier to borrow money with security
It is always easier to borrow money if you can provide something as collateral for the loan. The security may consist of a property or precious object, or a close friend or relative who is the guarantor of your loan.