When a customer wants to know what their pre-approved personal credit limit is, he or she often looks straight into his or her bank account or borrows to find out. At Fundico you can know the pre-approved value less than 3 minutes after filling in the data, but do you know how this limit works?
Personal Credit Limit
The pre-approved personal credit limit for a customer considers several factors. Income is an important factor in the calculation, because by this data it is possible to make an estimate of what value would not affect the financial health of the customer and would have installments that fit your budget. However, there are other issues also taken into account.
The definition of the personal credit limit is made by each institution, and there is no amount that the company is required to provide. It is possible, for example, for a financial institution to release $ 5,000 of loan to one person and another to deny the request.
Order evaluation is part of the business of credit institutions and there is no obligation for the customer to be approved even if it is not negative.
Failure to approve the loan application may occur due to factors such as score, lack of financial capacity to obtain a new debt, age, wrong information, among others. It is up to the granting institution to define whether the client is within the accepted profile or not.
To have attention
Even if you have an approved limit at an institution, it is always important to check the fees being charged. An institution may offer credit to negatives, for example, but due to the higher risk of default, interest rates turn out to be higher.
Even for those who are not negative, CET (Total Effective Cost) will consider a number of factors and so there is variation between institutions. The credit analysis and the institution’s own costs form the fees charged. Therefore, institutions like Fundico, with a lean structure, can offer the best personal loan rates.
The better the customer profile, the more likely they are to get a good rate and a good credit limit, but this will vary by institution.
Remember, knowing the CET and reading all the terms of the contract is very important before hiring any kind of credit.