Every credit - it is a financial liability. Soberly assess your opportunities, take credit responsibly. Before making a credit, carefully read all the nuances.

How much can I borrow?

Loan amount

If you look at loans in general, there is no upper limit on the amount you can borrow. It depends a lot on your credit score. If you have a bad credit score, the lender probably won’t let you borrow a large amount.

For consumer loans, you can borrow up to 10,000 euros. However, this is deeply individual, and in many cases it will be possible to borrow much less. This is partly due to the fact that different lenders have different limits, and partly because the assessment of your financial situation plays a key role.

The amount of the loan depends on the received credit rating. Factors such as your salary, fixed expenses, age, debt, and a host of other factors affect this. However, before you take out a loan, it is very important to find out how much credit you can afford.

To find out approximately how much you can borrow, you need to find out how much you can pay per month on the loan. To do this, you need to make a small table, enter all your monthly income, salary and any other sources of income in one column. In the other column, enter all fixed monthly expenses, such as utility bills, various subscriptions, rent, mobile phone and TV fees, and everything else that you have to pay each month. You also need to include variable expenses, monthly expenses for food and other necessary goods, as well as monthly fuel costs.

When all the data is received, you can easily get the balance of available funds, which you can spend on fun or possibly on paying off monthly loan contributions. But this is an approximate amount that you can get for yourself. Naturally, lenders will not count all your expenses in such detail. There is one universal rule that all lenders use. The rule is: the monthly loan payment should not exceed 40% of your income. Some companies may have a limit of 30% or 35%.

Before applying for a loan

Before applying for a loan, it is advisable to really assess your own solvency, carefully consider the size of the loan. Even the loan repayment schedule should be carefully planned before applying so that you don’t get an unnecessarily long loan term. Extending the loan term increases the total cost. On the other hand, too tight a payment schedule can lead to financial difficulties. The money received on the loan should not be used recklessly, it is not worth spending it on alcohol or slot machines. When considering getting a loan, it’s important to be honest with yourself and consider whether a loan-funded purchase is necessary and whether your own finances are stable enough to repay the loan.