Blog
Lend it
Blog
Credit Profile: definition and main rating factors
Credit Profile: definition and main rating factors
June 11th, 2020


If you are looking for a personal loan to achieve your inner peace but you do not know what financial institutions are based on to grant said loans, this post, we are going to explain what the credit profile is and how to have a good profile.

What is a credit profile?

A credit profile is the rating that financial institutions give you when applying for a loan, this score predicts a person's ability to pay and the fulfillment of their payments, which is based on a statistical model.

It is used through a measurement system that establishes your ability to pay.

This report collects all the financial information of a person, helps entities to know if a person can pay or not, that is why it is important to maintain a good credit profile.

How do you define a good loan applicant profile?

Top factors for credit rating:

Knowing the factors underlying the credit rating models is essential for making decisions.

Payment History or Payment History: This represents 35% of your score. This shows if payments are made on time, how often you are late in those payments, the number of days from the due date and when you have been late in payments.

Loan use rate: The credit rating considers through its algorithms, that the cards that are at the limit and the credit use rates that exceed 50% are a credit risk. The higher the rate, the greater the risk.

Loan History Length - Represents 15% of your score. The longer the payment history, the higher your score. In other words, a person who has had a loan for 10 years and should never have used collateral will receive fewer penalties than the most recent credit profile.

Type of loan: Having different accounts, including well-managed mortgage or credit card loans, will allow you to have the necessary information. This represents 10% of the grade .

Credit inquiries: this factor represents 10% of the rating. It is the least understood factor.


What is the debt ratio:

As we have mentioned, the percentage of indebtedness can vary, depending on the financial institution. They typically range from 30 to 40% of applicants' monthly net income.

Simple example, payroll of about € 1,200, the loan fee could be between € 360 and € 480, depending on this it will be set at 30 or 40 percent.

If in the same payroll you accumulate other loans of about € 250 per month, the bank will perform this calculation:

Debt calculation example:

With which, according to the example, the installment of your next loan that you request must range a maximum between € 285 and € 380 per month.


For this, classicgardensinc.com offers you the best offer of personalized loans completely free. With a single request, multiple offers you can receive and analyze the loan that best suits you. Easy and fast to achieve your inner peace!

Let Classic Loans search for you

We launched the Classic Loans Observatory We launched the Classic Loans Observatory.
Read more
Dream getaways to achieve your inner peace! Dream getaways to achieve your inner peace!
Read more
Adult training: back to the classroom !!! Adult training: back to the classroom !!!
Read more
We go back to school !!! We go back to school !!!
Read more
Bank delinquency: Definition and effects Bank delinquency: Definition and effects
Read more
Tech gadgets for kids Tech gadgets for kids
Read more
Motorcycles: The new alternative to get around Motorcycles: The new alternative to get around
Read more
Bazar classicgardensinc.com SALES !! Bazar classicgardensinc.com SALES !!
Read more
Credit Profile: definition and main rating factors Credit Profile: definition and main rating factors
Read more
Holidays 2020: The new normal in the interior of Spain Holidays 2020: The new normal in the interior of Spain
Read more
Non-mortgage loans: Clarifications on the moratorium on payment of installments due to COVID-19 Non-mortgage loans: Clarifications on the moratorium on payments of installments due to COVID-19
Read more
The most recurrent reasons for requesting a personal loan The most recurring reasons for requesting a personal loan
Read more
Gadgets 2020 to Reach your inner peace Gadgets 2020 to Reach your inner peace
Read more
Role Playing Games or Video Games What do you prefer? Role Playing Games or Video Games What do you prefer?
Read more
Loans for liquidity Loans for liquidity
Read more
Do you know where we spend our medical expenses? Do you know where we spend our medical expenses?
Read more
Why buy second hand vehicles? Why buy second hand vehicles?
Read more
Tips to reform your home in an effective way Tips to reform your home in an effective way
Read more
Unify credits in a single loan Unify credits in a single loan
Read more
Choose your loan and choose your destination ... Choose your loan and choose your destination ...
Read more
Pay it for Black Friday Pay it for Black Friday
Read more
Tips to differentiate loans and credits Tips to differentiate loans and credits
Read more
The reform of your home through Feng Shui The reform of your home through Feng Shui
Read more
I left home with a smile on, our iPhone 11 PRO review I left home with a smile on, our iPhone 11 PRO review
Read more
Keys to choose a new vehicle Keys to choose a new vehicle
Read more
Welcome to Classic Loans Welcome to Classic Loans
Read more
About us? About us?
Read more
We launched the Classic Loans Observatory We launched the Classic Loans Observatory.
Read more
Dream getaways to achieve your inner peace! Dream getaways to achieve your inner peace!
Read more
Adult training: back to the classroom !!! Adult training: back to the classroom !!!
Read more
We go back to school !!! We go back to school !!!
Read more
Bank delinquency: Definition and effects Bank delinquency: Definition and effects
Read more
Tech gadgets for kids Tech gadgets for kids
Read more
Motorcycles: The new alternative to get around Motorcycles: The new alternative to get around
Read more
Bazar classicgardensinc.com SALES !! Bazar classicgardensinc.com SALES !!
Read more
Credit Profile: definition and main rating factors Credit Profile: definition and main rating factors
Read more
Holidays 2020: The new normal in the interior of Spain Holidays 2020: The new normal in the interior of Spain
Read more
Non-mortgage loans: Clarifications on the moratorium on payment of installments due to COVID-19 Non-mortgage loans: Clarifications on the moratorium on payments of installments due to COVID-19
Read more
The most recurrent reasons for requesting a personal loan The most recurring reasons for requesting a personal loan
Read more
Gadgets 2020 to Reach your inner peace Gadgets 2020 to Reach your inner peace
Read more
Role Playing Games or Video Games What do you prefer? Role Playing Games or Video Games What do you prefer?
Read more
Loans for liquidity Loans for liquidity
Read more
Do you know where we spend our medical expenses? Do you know where we spend our medical expenses?
Read more
Why buy second hand vehicles? Why buy second hand vehicles?
Read more
Tips to reform your home in an effective way Tips to reform your home in an effective way
Read more
Unify credits in a single loan Unify credits in a single loan
Read more
Choose your loan and choose your destination ... Choose your loan and choose your destination ...
Read more
Pay it for Black Friday Pay it for Black Friday
Read more
Tips to differentiate loans and credits Tips to differentiate loans and credits
Read more
The reform of your home through Feng Shui The reform of your home through Feng Shui
Read more
I left home with a smile on, our iPhone 11 PRO review I left home with a smile on, our iPhone 11 PRO review
Read more
Keys to choose a new vehicle Keys to choose a new vehicle
Read more
Welcome to Classic Loans Welcome to Classic Loans
Read more
About us? About us?
Read more
TRUST US
en