The occupation is one of the factors that affects the assessment of creditworthiness. This is due to the statistical analyzes of banks that define the profiles of borrowers. Thanks to such data, they can assess who, in what situation, repays liabilities on time, and who has problems with settling the debt.
Budget employees often spend even several years in a given workplace. Such stability of employment, but also the earnings growing with the length of service, are strong bargaining cards when applying for cash loans or mortgage.
What affects creditworthiness?
Creditworthiness is the bank’s assessment of whether, in the current life and financial situation, we will be able to repay the loan amount for which we apply. The bank assesses:
- the amount of income – the higher the better,
- place of employment – the longer the length of service and the more stable the employer (such as the state budget), the easier it is to get a loan,
- profession and education – specialized employees pay off loans better than beginners in their profession,
- form of employment – the most desirable is an employment contract, and the most risky business activity,
- marital status and the number of dependents – childless marriages have a greater chance of getting a loan than singles, while too many dependents (children) work to the borrower’s disadvantage,
- age– banks most willingly grant loans to people at the peak of productive age,
- credit history– the more liabilities repaid on time, the more the bank is able to trust the borrower and lend him a higher amount,
- liabilities held– according to the recommendation of the Polish Financial Supervision Authority, the total monthly installments should not exceed half of the earnings of people with a salary up to the national average. In the case of people with higher income, the ratio to liabilities may reach 65%.
What do budget employees win? First of all, they mostly have a contract of employment, which in the eyes of the bank is the most stable form of employment and usually have a minimum of several years of work experience in a given place. Much more often than employees of the private sector, they also receive bonuses to their salaries – jubilee awards, thirteen years, bonuses for overtime, uniforms or commuting.
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In other aspects, such as earnings, family situation or credit history, the bank assesses public sector employees like any other borrower.
Can budget workers count on a cheaper mortgage?
Of course, you have to remember that one public employee is not equal to the other. They all share the relative stability of the employer, but share everything else. Those who are in a better financial situation can count on a cheaper loan. Considering only earnings, a doctor with experience has a better chance of getting a loan than a novice teacher.
It is worth knowing that in the case of a really good financial situation, you can negotiate the price of the mortgage. The conditions can then be adjusted by the bank to our situation and, for example, to lower the margin or waive the borrower’s obligation to have insurance. However, the bank makes such concessions only when we earn over 10 thousand. PLN, we have significant savings, and the risk of losing a job is really negligible.
In the case of a mortgage, the real estate also affects the credit decision. The bank takes into account the fact whether we have the required own contribution (mortgage loan without own contribution has not been granted since 2013), how much the property is worth, in what condition it is and in which location.
A special cash loan for a budgetary – does it even exist?
As it turns out, there are currently no dedicated bank offers for budget workers on the market. However, there are loans for liberal professions that can be used by people employed in the budget, but only in specific industries. Most often it is in the medical, legal and financial industries. Statistically, such people have high earnings, a stable job and have no problems with paying their liabilities. Therefore, banks are able to lend them more and on more favorable than standard terms. Such a customer can choose the cheapest cash loan available on the market.
Before issuing a credit decision, the bank will always ask us what our profession is. If it is a freelance profession, it is worth showing off it right away and asking for a preferential offer.
It is also worth remembering that budget employees will in most cases be granted cash loan without certificates. With such a reliable employer, the bank only needs a bank statement. As a result, the procedure for applying for funding is shorter.
18 min. ago
PiotrJust for common sense … why live beyond your means ???? If you can’t earn and save money ??? why do you listen to other people’s suggestions that … Read the whole thing
19 min. ago
private from a public budgetBut I don’t like banking, having a credit history in chf, my first and last loan in my life. Mr. editor, salaries do not increase and installments … Read the whole thing
3 min. ago
MilleniumI agree, they like it because my visit to the Millennium was enough, they got data, including the number, and telephones from various industries
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