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What is credit worthiness? Are you credit worthy?

Authoritative Source

Daniel Wessels

Have you ever wondered what a finance provider such as ourselves looks for when we assess your application for one of our super quick personal loans? Several factors are considered to work out your creditworthiness to assure us you’re able to comfortably handle the debt.

A break down of the main points of creditworthiness

Credit worthiness is the assessment of an applicant to determine the likelihood that he applicant will default on debts. Creditworthy individuals are considered to be a ‘good risk’. They’ll have a track record of managing, and repaying debts on time. They’ll also have demonstrated an ability to manage debt.

The Oxford Dictionary’s definition of ‘creditworthy’ is simple: “(Of a person or company) considered suitable to receive credit, especially because of being reliable in paying money back in the past.”

What do we look at?

Your credit file

We’ll look at your credit file (your history of credit applications and interactions) to see if you qualify for loans for bad credit. You can ask to see a copy of this file to see where you stand (and also to ensure your info’s accurate). The credit reporting bodies we use are:

Veda Advantage Australia

Experian Australia

Your income

We’re not expecting you to be earning thousands of dollars per month. Instead, we’re looking for proof of steady, regular income—each week, each fort night or each month.

Your expenditure

It may seem strange that debt can make you more (and not less) creditworthy, but we like to see evidence of your ability to manage debt (and pay things down). It’s a question of balance between your income and your expenditure, and making sure your debts are well within your capacity to handle.

Why does it matter if I am credit worthy?

It matters to you

We don’t want our customers to take on debts they can’t afford. We don’t want you to become slaves to your personal loan; we don’t want you to slide into financial distress.

We want to help our customers when an unexpected cost arises and make their lives easier, not harder. Used responsibly, credit can help you get out of a tricky situation. But we don’t want our customers to borrow more than they can afford. We consider centrelink as income for bad credit centrelink loans.

It matters to us

We take our role as responsible lenders very seriously for those who apply for online payday loans through Jacaranda Finance. Lending recklessly is not good for us, or for our shareholders. It’s not good for our community and, ultimately, it’d let you down, too.

That’s why we place such importance on creditworthiness. That’s why it matters.