When applying for financing, the requirements and the credit approval process will vary considerably depending on the type of loan we request and the financial one. In general, Payday Champion offers these types is more flexible when granting loans, we will demand fewer requirements and less paperwork. However, banks are more demanding and carry out a risk analysis prior to the approval or denial of personal loans. In this article, we analyze what this analysis consists of and what factors it takes into account.
A thorough study of the credit history and customer defaults
The entities check if we have requested another loan at some point in our life, to check if we have been able to repay the loan without problems. Banks access this information through the database of the Risk Information Center of the Bank of Spain, better known as CIRBE. In this database, our past and present credits remain registered, in the case of enjoying one at present.
This information is directly linked to the payment history, since the entity will check if we have outstanding debts of any previous credit, or even of other services, such as payments of electrical, telephone, etc. supplies. To identify these defaults, the entity accesses the various existing default files, such as ASNEF or RAI. If we have outstanding debts and we are registered in any defaults file, no traditional bank will grant us a personal loan.
Do we have a sufficient payment capacity?
In direct relation with our credit history, the entities will take note of our ability to pay to approve or reject the granting of financing. To check whether we will have problems or not to repay the debt, the banks set a series of requirements, that to comply with them would mean that we are solvent enough so that the entity lends us money without taking too much risk.
For this, any entity to which we request a personal credit will ask us to provide you with a receipt of income, a payroll for example, and an extract from the bank account to check the inflows and outflows of money during the last months. With the payroll, pension or proof of income, the bank ensures that we receive a remuneration high enough to pay back the debt, which we receive on a regular, constant and lasting basis over time.
Apart from the economic requirements, banks also require, when granting a personal loan, that the customer be of legal age, resident in Spain and, in some cases, be a client of the bank or increase the degree of connection with the entity, through insurance, which in turn will reward interest on financing.
If we do not fulfill some of these characteristics, the bank will not offer us the loan, so we would have to go to private equity companies.