Reasons why you may not receive a cash loan

In most banks, the rule is that a client earning below the national average can allocate 50% of their income or 65% of their income in installments, if the monthly income exceeds the national average. The amount of average income is determined by the Central Statistical Office.

The next thing is the credit burden that reduces your ability. Each monthly installment, or interest on the account limit and credit card will be deducted from our income. It may turn out that by paying off several installments now, we may no longer have a chance to get a new loan.

The more people we support (children, unemployed spouses), the higher the costs we incur for them. Currently, we can obtain additional funds by raising children, in the form of 500+, but most banks do not recognize this as income, so it will not increase our credit standing.

Delays in repayment

Delays in repayment

Delays in repayment are also a fundamental issue. The financial institution assumes that if you do not currently pay your loan installments on time, then you are not a customer you can trust. Banks calculate risk, they prefer not to grant credit at all than to borrow funds that will be hard to recover.

A few delays of up to 30 days by most institutions are still accepted and will be willing to provide financing, although this will definitely affect the cost of the offer. However, if the delay exceeds 30 days, then you must be aware that it will be difficult to get a loan.

A large number of credit inquiries

You went to the bank to ask if they have an offer for you, it turned out yes, but it did not satisfy you, so you went to several other institutions to compare the offers. After such a trip around the banks, at some point it turned out that other banks no longer have any proposal, because the number of credit inquiries is exceeded.

Usually, customers are not aware that going from bank to bank and asking for an offer for themselves is treated by financial institutions as credit inquiries.

Each inquiry reduces your scoring (customer rating) and scoring in BIK. Additionally, if you make 3-5 queries a month, you will be blocked and the rest of the banks will not grant you credit.

There are several banks on the market today that are “loosely dealing” with credit inquiries made by customers.

Fixed-term contract

Fixed-term contract

Having a fixed-term contract, e.g. 1-2 years, you are not in a comfortable situation because most institutions will grant loans only for the duration of this contract. When applying for larger amounts of several to several dozen thousand dollars, for such a short period, the repayment installment will be too high and in most cases there will be no capacity.

Of course, there are also banks on the market that will offer a loan period longer than your employment.

Debt in parabanks (payday loans)

One ruined their lives, but they also helped many people to patch their household budget. Experts estimate that about 250,000 Poles have had contact with them, and the amount of loans of this type paid is around USD 4-5 billion. It proves that payday loans have made a brilliant career on the Good Finance.

Some banks, not wanting to lose customers, have opened to people who have payday loans and even have offers to consolidate them. However, in most cases such people have problems obtaining a loan from the bank.

Too many loans taken out in a short time

Too many loans taken out in a short time

A large number of liabilities incurred in a short period of time is not well seen by financial institutions. This is the so-called “tendency to get into debt quickly”. There is a suspicion that the customer will be in debt beyond the state and will not be able to pay its liabilities.

It is better to take one larger loan for several months than to draw small amounts monthly.

The business period is too short

The minimum required business period is 12 months. After this period of functioning of the company, we can think about financing from the bank.

This period of time is needed to assess whether the company has growth prospects and whether it obtains stable income.

A company whose seniority does not exceed 6 months has the option of applying for a loan to start.

However, these are small amounts and the offer is not available to everyone.

Lack of credit history

Lack of credit history

Don’t have a credit history? You are a blank card, you don’t know what to expect from you – that’s how financial institutions estimate risk. In this situation, there is no need to think about a loan for a larger amount.

You need to start with a small overdraft or credit card, preferably at the bank where your salary is received. After several months of regular use and systematic repayment, we’ll get a credit history and it will be easier for us to get a loan from other banks.

Earning income abroad

It is estimated that over 2 million of our compatriots live outside the country and generate income there. Many of these people need to take out a loan for a car, renovation or vacation after some time.

It would seem that if you earn a lot more abroad than you could earn in your homeland, there will be no problem with getting financing in Poland. Nothing could be more wrong.

There is only a small group of banks that is willing to grant loans to people employed outside our country, in addition, they have much higher requirements for such customers.