Every lender runs the risk of not getting the money back. In order to minimise this risk, it checks the so-called creditworthiness of the applicant. The creditworthiness shows whether the loan applicant will be able to meet his financial obligations to the lender in a proper and timely manner. When determining the creditworthiness of a loan applicant, the bank or non-bank lender considers a number of parameters. The process of assessing creditworthiness is called scoring.

Assessment of the creditworthiness of the loan applicant
The first thing the lender looks at is the bank and non-bank register of customer information and the SOLUS register. A negative record in these registers leads to the rejection of the loan application. The creditworthiness of the loan applicant is also assessed by looking at, for example, age, gender, highest level of education, occupation, marital status, income and regular expenses. Each lender has its own methodology for assessing creditworthiness.
How to increase your credit rating
There are several ways in which a prospective borrower can improve their creditworthiness. In case of insufficient income, the solution is to increase the current earnings in the current job or to obtain additional earnings. For mortgages, another common solution is to bring in a co-borrower, for example, to significantly increase income.