Credit cards are nowadays one of the most popular banking products. This is quite understandable — the cards are very convenient and easy to use, the debt on them is easy to pay off, you can pay for purchases with a card or withdraw cash.
However, you should not forget that a credit card is also a type of loan, which means that if you are suddenly going to get it, the bank can either approve or reject your loan application.
What are the criteria by which the bank evaluates the solvency of its potential customers?
First of all, the credit inspector must contact the credit bureau to find out if you took out a loan earlier and how timely and fully paid monthly payments, whether you have delays and debts in other banks. Credit history is one of the main indicators of your credit solvency.
It will also play a role how long you live at the address indicated in the application form, as well as how long you worked at the place of service.
The bank will definitely check your finances and your property in order to be guaranteed to have insurance against non-payment of debt — in case of non-repayment, your funds from accounts, as well as real estate or vehicles, can go to pay your debt.
To come to the correct conclusion how stable your monthly income is, the bank turns to information about your place of work. In most cases, bank employees make calls to the specified place of work for a personal conversation with the management of a potential borrower. Questions such as:
• Does the organization have incidents of delayed wages?
• What position is the potential client of the bank?
• Is he temporarily or permanently employed?
• Questions about your family are likely. How many people live with you in the same living space? Do you have minor children or other relatives on your support?
When drawing up and signing the agreement, the bank is trying with all available forces to protect itself from material damage in case of non-payment of the loan, so be as careful as possible when reading the agreement and even more so when signing it.
And think a few times before borrowing from a bank. Evaluate your strengths reasonably and objectively so that after issuing a credit card, you will only enjoy using it.