Do you have a client that you want to do a bigger deal with? But you are not sure whether the customer can make the payment? Then you should do a credit check beforehand. This article will show you exactly what you have to pay attention to and what options there are for you.
The term credit check describes the examination of solvency. When it comes to a credit relationship, the whole thing is also called a credit check. A credit check tells you how likely it is that your customer will be able to make their payment within a certain period.
In general, every contractual partner can request a credit check. However, it is up to you to decide whether you want to take the exam. But the credit check makes sense, especially with high sums.
As a rule, the company that wants to start a contract carries out a credit check.
The so-called creditworthiness information is stored by credit agencies and collected accordingly. The credit agencies obtain this data on the one hand from contractual partners and on the other hand from public sources. The contractual partners of the credit agencies include:
Examples of public sources include:
Creditworthiness is required when a legitimate interest. This interest exists, for example, with companies and credit institutions when it comes to large sums. But even with small amounts, such as the monthly mobile phone costs, the provider requires proof of creditworthiness. This is because the contract usually lasts for a longer period. Other providers who require this proof are, for example:
As already mentioned above, a credit check is carried out before a contract is concluded. In addition, this test serves as a kind of insurance for the contractual partner. In other words, if the credit rating is bad, the contract will not be concluded for security reasons.
Different categories are checked. These are:
We will show you which data belong to the individual categories in the list below.
In principle, one does not work without the other. Because if you submit a credit request, a credit check is automatically carried out. Whether the loan is ultimately approved or rejected depends on whether the credit check is positive or negative.
This question can easily be answered with no because the credit check is part of the loan applications in particular.
Every bank has different internal criteria, which are, however, subject to trade secrets. Nevertheless, it is the case at every bank that the income and other existing liabilities are part of the test. This means that you have to submit proof of income and bank statements. In addition, the bank always inquires about the economic situation and general payment behavior from a credit agency. In addition, the following is included in the calculation:
Ultimately, there is a score. This score shows the Schufa and the respective bank the probability of whether there is solvency or not.
There are two types of credit rating. Firstly, there is personal creditworthiness, and, secondly, there is economic creditworthiness. We will show you below what these types mean in detail.
With a personal credit rating, it is important to consider the personal characteristics of the person examined. This means that the willingness to pay and the reliability of payment are assessed. Therefore, the following factors are checked:
Economic creditworthiness relates solely to the financial circumstances of the person concerned. The question arises as to whether the financial means are or will be available to settle the bill. Accordingly, the following factors play a role:
In theory, it is already possible to influence creditworthiness. However, only before the exam and using appropriate past behavior. However, if a bad Schufa entry should have come about, the credit rating cannot be influenced. The only thing you can do is improve your credit rating in general.
There are a few ways to improve your credit rating. We will show you the options in the following list:
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