What is Credit Loan?

A credit loan is a loan granted by a bank to a person who is very creditworthy and has the ability to repay.

There are two key points here:

1:The applicant has good credit

2:The applicant has the ability to repay the loan

Let’s look at the first point first. How can banks tell if an applicant has good or bad credit?

It’s simple: check the applicant’s credit report to see if his past loan or credit card repayment record is normal.

If the applicant’s repayment record is good and there are few late payments, the bank will consider the person to have good credit.
On the contrary, if the applicant has a lot of late payments on his credit card or if his credit card is in the black, the bank will consider the applicant to be a non-creditworthy person and will certainly not grant him a loan.

Here’s a point of knowledge: many people think that if they haven’t taken out any loans, their credit is definitely very good and they can apply for a credit loan 100% of the time.

The bank doesn’t see your loan record, so they don’t know how good your credit is and don’t dare to lend you money. This is how white households inexplicably become a lying family!

The second point is how the bank determines that the applicant has the ability to repay it?

The first look at the applicant’s name has no assets, if the applicant’s name has a house, car, provident fund, insurance policy, then the bank will think you have the ability to repay.

For example, the applicant has an online loan with a monthly repayment of 1000 RMB and no assets, but the applicant has a stable salary, with a monthly income of 8000 RMB as a punch card.

In this case the bank will still consider the applicant to have the ability to repay and give him a credit loan with no problem.