Recently, there has been a rebound in credit approval, and in particular, according to the latest Loan Survey of the Bank of Spain, in the second quarter of the year, demand for loans to households increased, both for the purchase of housing (mortgages) and for Consumption in general. In fact the institution reported that the number of credit cards in circulation exceeded the number of inhabitants.
However, experts have pointed out that by the third quarter of the year the criteria for granting loans to households could be hardened. The Kelisto.com portal has analyzed the market and offers some clues about how the bank thinks and what it takes into account before approving a credit to the applicant:
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 is not the same to have an indefinite contract that one for a certain time. Banks also do not value postulants who work as civil servants in the same way as those who do so on their own: the former have more options for securing funding while the latter are likely to be required to provide additional guarantees.
Payroll and Income Statement
To know how much you earn, if your salary has been stable in the last months and for whom you work, the usual thing is that the bank asks for your last payrolls. It also usually requires that you present your last statement of income: that way, you will know if you have any additional income, housing or if you save on a pension plan, among other data.
The saving capacity
It is often an important and decisive criterion when applying for a mortgage more than when applying for a personal loan. In this sense, banks usually study the assets of their future client and, especially, if they have properties that are free of charges or debts that could serve as collateral. The ideal is to have money saved before applying for credit to increase the chances of obtaining it.
Solvency is the ability of a person to deal with the payment of their debts. To investigate further on this feature, banks analyze the applicant's salary, their movements and whether it has been registered in a delinquent file or in red numbers.
Before granting a loan, banks also study the remaining debts of the user (personal loans, mortgages, credit cards, etc., and the percentage of them all of their total income. Loan that the person is applying for, do not exceed 35-40% of their income will increase their chances of obtaining a loan). If you do not meet this requirement, ideally you start to organize your finances through a monthly budget that allows you to lay the foundation to apply for the loan and achieve your goal of buying a home of your own.
What documents do banks ask for or consult?
Banking entities usually consult the data of the Bank of Spain's Risk Information Center, a database that has information from all banks on the loans and guarantees of each client, provided they exceed 6,000 euros. It is not a delinquency file but a tool that allows you to know what outstanding debts the consumer has. Previously the banks had to ask the client's authorization to consult their data in CIRBE, but now they should only notify him that they will do so.
The writings of other properties
Checking what properties the client has allows the bank to get an idea of if it is a user with a saving capacity. Owning a home can be an additional guarantee to get you a loan.
Less strict financing
There are some loans that are much less demanding in your grant criteria. These are microcredits, some financing products that allow you to request small amounts of money, to return in a short time and with hardly any explanation. Even as you will see in our monthly ranking, many offer free financing under certain conditions. The disadvantage of these types of loans is that they are usually very expensive. Experts recommend considering these at particular times, but not as usual.