Recently there has been a rebound in the approval of credits and, particularly, according to the latest Survey on Loans of the Bank of Spain, in the second quarter of the year the demand for loans increased, both for the purchase of housing (mortgages) and for consumption in general. In fact, the Bank of Spain reported that the number of credit cards in circulation exceeded the number of inhabitants.
However, experts have indicated that for the third quarter of the year the criteria for granting loans to households could be hardened. The Kelisto.com portal analyzed the market and offers some clues about how the bank thinks and what it takes into consideration before approving a credit to the applicant:
Have job stability:
The bank is also interested in knowing if you have a stable job and who pays your salary, before considering approving a loan. For them it does not mean the same to have an indefinite contract, that one for a certain time. Banks also do not value applicants who work for a company or for the state in the same way as those who do it on their own, since the firsts ones have more options to obtain financing, while, the latters, they are likely to be required many more additional guarantees.
Payroll and the declaration of income:
To know how much you earn, if your salary has been stable in recent months and for whom you work, it is usual for the bank to request your latest payroll. It also usually requires that you present your last tax declaration, that way you can know if you have any additional incomes, house or if you save in a pension plan, among other information.
The ability to save:
It is usually an important and decisive criterion when a mortgage is requested, even more than when a personal loan is requested. In this sense, banks usually study the assets of their future clients and, especially, if they have properties that are free of charges or debts that could be used as collateral.
Solvency is the ability that a person has to face the payment of their debts. In order to determine this, the banks analyze the salary of the applicant, their bank movements and whether it has been registered in a defaulter file or is in the red.
Before granting a loan, the banks also study the rest of the debts that the user has pending (personal loans, mortgages, financing with credit cards, etc.) and the percentage that all of them represent of the total of their income. including the new loan that the person is requesting, they must do not exceed 35-40% of their income and like that it will be well seen for the bank.
The purpose of the loan:
It is not as decisive as other criteria, but knowing what you are going to do with the money also says a lot about you to the bank. It is not the same to request a loan to buy a house (something that will increase your patrimony) or to finance some studies abroad (an investment in the future, in the eyes of your bank), to request money to refinance a debt, something that already speaks bad about you as a payer.
What documents do banks request or consult?
· * CIRBE data
Banks usually consult the data of the Risk Information Center of the Bank of Spain, a database has information of all banks on the loans and guarantees of each client, provided they exceed 6,000 euros. It is not a file of defaulters but a tool that lets you know what outstanding debts the consumer has. Previously the banks had to request authorization from the client to consult their data in the CIRBE, but now they only have to notify them that they will do it.
* The deeds of other properties
Checking the properties of the client allows the bank to get an idea of whether it is a user with savings capacity. In addition, a home can serve as an additional guarantee to obtain a loan.
Less strict financing:
There are some loans that are much less demanding on your grant criteria. It is about microcredits, financing products that allow you to request small amounts of money, to return in a short time and without giving explanations. The disadvantage of this type of loans is that they are usually very expensive. Experts recommend considering these at particular times, but not as a usual method.