Regardless of what guides us in applying for a loan, it is important to meet as many conditions as possible so that the decision on our loan is positive.
One of the important issues that we often don’t know about is seniority – the shorter, the smaller our collateral in the eyes of the bank. So how do you complete all the formalities related to applying for a loan of cash so that you don’t get in the way of a short work experience?
What specific conditions
Few people know that seniority affects the final appearance of our creditworthiness. It is hard to expect that when starting the first job or having a newly founded company, we will be credible enough for the bank that we will receive a loan. It is not necessary to work for several years, which will make us sure of a permanent job, but three months of work under an employment contract is the minimum for institutions granting loans. Also, when you change jobs is not appropriate for applying for a loan. In order for a bank employee to calculate our creditworthiness, the applicant must work a minimum of one month in a given workplace. An important issue is also work based on a fixed-term employment contract.If this period of work is too short, it may be difficult to calculate creditworthiness correctly.
Work on a civil law contract
A work or work contract is an attractive form of earning money when paying taxes. As a result of labor law, the amount of tax paid to the Tax Office is less than in the case of an employment contract. However, working on the basis of a mandate contract, we have less stability of work, hence credit granting institutions have more requirements for these applicants. The overriding issue is the stability of income arising from work under a contract for specific work, only a minimum of six months of service under this contract is required, and ideally all contracts should be concluded with one employer.
In this situation, we bring to the bank all contracts and the PIT tax return from the last year. In the case of running a business, the main way to apply for a loan is to settle accounts with the Tax Office and the way you choose. An entrepreneur generally has three options for settling accounts with the tax office: on general principles, a tax card and a lump sum. It is best to apply for a loan by tax settlement based on the first form settlement. However, this issue is not crucial in the process of applying for a loan by an entrepreneur. The length of the enterprise’s operation is equally important. Most often, the company is expected to have a 12- or 24-month internship on the market.
Few people know that seafarers are treated as a separate professional group. This is due to the specificity of this profession’s work and source of income. In the case of this professional group, the deciding factor in the credit decision is seniority. In most cases, a minimum of one year’s profession is required.