What is credit analysis?
October 25, 2019
Have you gone in for a loan and found that you would go through a credit analysis and don’t know what that means? Calm down, it’s pretty simple. Credit analysis is the assessment made by the lending company to know your credit return potential, as well as the risks involved in this loan or even in granting a credit card.
How does credit analysis work?
Each institution defines its own credit analysis format, but in general there are basic data considered by most institutions, such as personal data, income, score, income commitment, among others. When a person is negative, for example, they tend to be barred in this analysis – even though there are companies that offer this credit at higher interest rates.
Much user data is analyzed during the risk assessment, allowing the company to define which rates to apply, what the credit limit will be for each customer and how often to repay the loan. Thus, credit analysis is important for maintaining the client’s financial health. The more stringent it is, the less likely the borrower is to get into debt.
Who does credit analysis?
Credit analysis is common mainly among lenders, but it has also been carried out by insurers since the 1930s. It assists these companies in maintaining a competitive advantage over other companies.
What is the difference between pre-analysis and Fundico analysis?
At Fundico the customer can find out in less than 3 minutes the result of their credit pre-analysis. This means that he informs the site of his data such as name, income, occupation, telephone, social security number, etc., and finds out how much credit he gets and at what rate considering that data entered.
When the customer is then pre-approved, he is directed to the credit analysis stage, where he needs to prove the previously informed data. This is done by sending the documentation to the customer. It is with them that he proves that he is the holder of the informed CPF, as well as proves your income, your address, and other data. This step is critical because it is from this that the institution prevents fraudsters from using third party data to borrow.