The note that indicates the extent to which consumers fulfilled their financial responsibilities arising from the credit, credit card or any other basic banking product used by banks in previous periods is called a credit note.
Thanks to its credit rating, it may be necessary to settle for unexpected amounts such as the approval of unexpected loan applications and it is important to point out that this is a very important data. Therefore, in order to avoid trial and error, it may be useful to answer the question of how many can I get a loan in detail.
What is a Credit Rating?
Loans, credit cards, checks, etc. used in past periods or actively. After calculating to what extent the debts arising from basic banking elements are paid to the bank, that is, to what extent the responsibilities are fulfilled, based on nominal criteria, the note is called a credit note.
More than one factor plays a role in determining the credit rating, but the most important factor is the details such as to what extent the debts acquired due to the loans are taken or the credit cards used are paid, whether they are paid on time or not.
While consumers who pay attention to such matters can raise their credit ratings in a short time, the credit ratings of those who do not pay attention may be destroyed within a very short time.
How to Evaluate Credit Rating
The evaluation of the credit rating depends on many factors, but the most important of these is the debt payments made to the loans used in the past, the amount of the debts arising from the credit card and derivative products used, the current debt burden, monthly income, whether tax payments are made, how often the loan or loan. Basic banking items such as cards are used.
After each of these factors are evaluated on their own, they have an impact on the credit rating, respectively. In addition, there are hidden factors that are not disclosed but have a 10% impact on the credit rating. The reason why these factors are not explained is to prevent the algorithm from being defeated and prevent manipulations.
Credit Rating Groups
Calculated credit ratings are divided into groups within themselves and these groups show the risk that the bank delivers this product to the consumer if the bank issues a credit or credit card. According to the current credit rating groups:
- The credit rating of 1-699 is the riskiest,
- The credit rating of 700-1099 is medium risk,
- The credit rating between 1100-1499 is low risk,
- A good credit score between 1500 and 1600,
- The credit rating between 1700-1900 is in a very good group.
The higher the credit score, the more likely it is to get approval after the loan application and the possibility of not submitting documents.
Whatever Credit Rating Is, Easily Withdraws Credit
The ability to withdraw loans easily is the ability to obtain loans after the loan application without any document or collateral obligation and this threshold is 1500 points for banks. In other words, if your credit rating is over 1500 points, you can easily submit an application for a loan to which you will make a loan installment payment not exceeding 40% of your monthly income.
Why banks may not give credit
It is obviously known to everyone that a loan cannot be granted due to consumer-based problems, but low credit rating or income is not the only reason for banks’ refusal to apply for loans. Macroeconomic problems, that is, problems within the country’s economy, may also cause consumers to not be able to attract loans. It can be assumed that an economic problem exists at this time when deposit interest rates exceed almost 20%.
To describe the problem in its simplest form, it is possible to depict interest as the value of money. In other words, the factor that determines the value of 20 for the bank is interest, and it can be considered that the value of interest, that is, the value of money gradually increases for the bank, and savings decrease, which is an important problem.
The Central Bank may need to increase interest rates again in the upcoming periods, which may mean that consumers will not be able to withdraw loans no matter how high their credit ratings are. There are even economists who analyze whether or not a crisis has occurred in a country, whether the banks give credit or not. According to these economists, whenever the banks with foreign capital in the country do not lend, there is a crisis in that country, and the situation is getting closer to this.