From time to time, clients come to us to apply for a loan and in the end we approve a lower amount than they would like. While we do not meet their expectations, we also protect them from potential problems. Because in Athos we lend money responsibly, so we will never offer you a loan that could put your family budget at risk .
But how do we figure out that you can manage to pay CZK 80,000 at ease, but perhaps CZK 120,000 already? The credit score, which is influenced by a large number of parameters, will help us. We will now introduce the most important ones.
Revenue is not everything
First of all, let’s look at your income and expenses and make a small family budget. Based on the results, we will decide if we can lend you the required amount with a clear conscience. First of all we are interested in your income, because every loan needs to be repaid from something. To sum it up in one sentence:
If your earnings are low
This does not mean that you will not get any loan. We just need to adjust the monthly installment so that the family budget does not suffer. Of course, this is not always the case, and so we may only approve a smaller loan.
We count on your expenses
The amount of income is closely linked to the cost of living. It makes no difference whether you live in your own house or rent. Among other things, we consider the number of children and other factors that we will discuss in more detail in the second episode of the credit score series.
However, at the end of this episode, we’ll tell you what can reduce your score. Of course, this is the number of loans you are currently paying back. Because of this you not only have higher monthly expenses, but at the same time you cannot save and thus have a reserve in case of unexpected events. And that signals problems.
Remember, therefore, that your credit score is primarily for your protection and do not borrow more than we have recommended. The responsible lender is always wondering whether you can repay the loan.