Have you used our Loan Affordability tool yet? If you are looking at borrowing money then our loan affordability tool could be for you.
Checking your affordability:
Generally, in order to complete an affordability assessment, a lender will review how much you earn (your income) and how much you spend on bills and other regular payments (your committed expenditure) and other factors that include outstanding debts and other loans you may have etc. The good news is that we take this hassle away from you by trying to figure all of this out, read on to find out more.
What and how does a loan affordability tool work?
There was a time where getting a loan consisted of only a few factors. Lenders would assess whether the loan being given was profitable for them and they would vet your likelihood of making repayments by checking your credit report. However, in recent years the process of receiving a loan has evolved.
Today, in addition to assessing whether a loan will be profitable, lenders will also assess whether a consumer can repay a loan. They require further verification of a consumer’s financial information beyond just reviewing a credit report and score. The name for this additional step is Loan Affordability and it generally takes on six criteria:
- Verification of income
- Assessment of quality of income
- How many loans you currently have outstanding
- Amount of disposable income vs. the monthly loan amount to be repaid
- Gambling
- Bounced cheques
Until recently, the Loan Affordability Assessment required sending the bank documents to verify these criteria. However, with our Loan Affordability Assessment, this no longer has to be the case.
We have teamed up with some great companies to bring what currently happens with lenders today directly to the consumer (you) so that you have the ability to understand exactly how lenders view you. These companies facilitate the usual Loan Affordability consumer interaction electronically by allowing the consumer to authorise the transfer of this information from their bank to the lender directly.
So how does it work?
After you sign up for ScoresMatter you can begin your onboarding experience in the loan affordability feature. There, we will effortlessly guide you through verifying the criteria mentioned above. It’s as simple as verifying your information, connecting to your bank, and from there you can see what amount you could afford to borrow.
All of which is demonstrated in easy to read scales and scores. You will also receive insight on how to improve your chances for loans in the future and even the ability to view all of your past, present and future in Loan Affordability terms.
The great news is, by using affordability tools like your credit report, consumers (you) only create a “soft search”. These aren’t recorded on your credit files which means a lender won’t be able to see them either. This has two benefits, the consumer has a much higher chance of success in obtaining a loan and they also have that added peace of mind knowing they can afford it.
Tap Into The Digital You at ScoresMatter today and see what you can afford.