If you have ever received an answer along the lines of “that amount is not possible” or “less was approved than you expected”, you have already seen what creditworthiness means in practice. The good news is that it is not some magic number known only to the bank. In most cases, you can get a pretty good sense of what’s actually lowering it and what you can do about it, before you even apply.

If you want to know roughly how much you could borrow based on your income, read how much you can borrow based on your salary. How a bank calculates creditworthiness step by step (DSTI, SISBON, minimum living costs) is explained in how banks calculate creditworthiness. This article focuses only on what you can do yourself to improve it before applying, for both a mortgage and a consumer loan. For a quick calculation of where you stand today, use our creditworthiness calculator.

In short: what the bank looks at

The bank estimates how large a monthly instalment you can realistically carry given your income and liabilities, and whether you could keep paying it if things got worse. The detailed calculation is in how banks calculate creditworthiness, and you can check your current limit with the creditworthiness calculator. Below are 5 things you can change yourself before applying.

5 levers to improve your creditworthiness

1) Income: show that it is stable

Regular employment income is the most “straightforward”. For extras (for example, the variable part of your salary), copyright-contract income, or income from a sole proprietorship, banks often require more supporting documents and a longer period of stability. If you can, wait with the application until this income has a longer, documented history.

2) Liabilities: close what you do not need

This is the part that most often surprises first-timers. The bank does not look only at your existing loans. It often also takes into account:

  • leasing and other long-term liabilities,
  • credit cards, especially if you have a revolving balance or fixed instalments,
  • an authorised overdraft/limit (even if you do not use it in full), because it represents potential risk.

So before applying, close cards and limits you do not use and, if possible, pay off small instalments.

3) Household: consider a co-applicant

If you have dependants, the “room” left for an instalment usually shrinks. Not because the bank doubts your sense of responsibility, but because the model assumes higher basic living costs (the exact amounts are in minimum living costs for a loan). If your partner has a regular income, add them as a co-applicant; this often raises the household’s creditworthiness considerably.

4) Loan term and amount: adjust them

For the same amount, a longer term will generally mean a lower instalment, but a higher total cost. That is exactly why it makes sense to combine two tools:

5) Type of loan: pick the right one

With mortgages, there are usually more elements involved (for example, insurance, valuation, a mortgage lien). With consumer loans, the process is often faster, but the interest rate is usually higher. In both cases, the same rule applies: if the instalment is “right on the edge”, the bank will usually be more conservative.

The most common reasons you get less (or do not get approved)

  • The instalment is too high relative to your net income (even if “you feel like it would work”).
  • Too many open liabilities (for example, a loan + leasing + card + limit).
  • Income is not stable enough (for example, a new job or highly variable income).
  • Too many applications in a short period of time (this can look like “panic” or searching for a last option).

If you have already been turned down, read what you can do when a loan is refused for creditworthiness: how to check SISBON, which routes are realistic and which traps to avoid.

Quick rule of thumb:

If you want a good initial sense of where you stand, your planned instalment should still leave you enough “breathing room” for day-to-day life and a reserve after all obligations are paid. The bank looks at things conservatively, but in the end you are the one who will be repaying that instalment for years.

Example: mortgage and consumer loan (two quick simulations)

So this does not stay purely theoretical, let us look at two typical situations. The purpose of these examples is not “official approval”, but guidance on how this line of thinking translates into actual numbers.

Example 1: mortgage

You want a loan to buy property and are aiming for a term of 20-30 years. The key question is: what monthly instalment can your household handle even in a less favourable scenario? For a quick estimate, use the creditworthiness calculator, and then check the specific term and total overpayment in the loan calculator.

Example 2: consumer loan

You need financing for a renovation or a larger purchase. The term is shorter (for example, 3-7 years), so the monthly instalment can quickly be higher. With consumer loans, it is especially important to understand the APR (Annual Percentage Rate), because it also includes costs. If you want a quick explanation, also read the article What Is APR and Why Is It More Important Than the Nominal Interest Rate?.

Checklist before you apply for a loan

  • Sort out your liabilities: if you have several smaller instalments, check whether you can consolidate or close them.
  • Watch your limits: high authorised limits and revolving cards can worsen the picture, even if you do not actively use them.
  • Documentation: prepare supporting documents (especially if you have variable income or are self-employed).
  • Term: a longer term lowers the instalment but increases the cost, so make sure you check both scenarios.
  • Reserve: if you are “right on the edge”, it is smarter to build a financial reserve first before committing to a long-term instalment.

Advice for FinPortal readers:

The fastest workflow is: (1) calculate your limit with the creditworthiness calculator, (2) compare specific offers with the loan calculator, and (3) when comparing banks, always also check the APR (not just the advertised interest rate).