Marzena, who receives maternity allowance and alimony, has written to us. He is thinking about a loan, wants to renovate the apartment and decorate his daughter going to school with a new room. Mrs. Marzena is afraid that the bank will refuse her a loan, and her savings are not big and will certainly not be enough to implement the plans. Are her fears valid?
Creditworthiness and benefit
Maternity allowance is paid to every woman who has just given birth to children. Mum receives a benefit for the first year of the baby’s life. The benefit is guaranteed for every mother, regardless of whether she pays sickness contributions, is a student, unemployed or employed under a specific work contract.
How much is maternity allowance?
In 2019, the woman who gave birth to a child will receive one thousand zlotys per month. However, if a woman worked less than a year before the child was born, then her seniority will be taken into account and the amount of the benefit will be calculated on this basis. If it is less than PLN 1,000, the state will pay the difference.
If a woman worked under a contract of employment at the time of pregnancy, the amount of the allowance will be calculated from the basis of the monthly salary in the year before the child was born.
Maternity allowance and maternity leave
Very often these terms are used interchangeably. However, this is a mistake, because only women employed under an employment contract are entitled to maternity leave, and all young mothers are entitled to maternity allowance.
Maternity allowance is due to a woman both during and after her employment. The difference, however, is that after termination of employment, it will be paid by the Social Insurance Institution, not by the employer.
If a woman is employed under a fixed-term employment contract (let’s assume until June), and in January finds out that she is pregnant, then this contract is automatically extended to her until termination. After the birth of the child, she is entitled to maternity benefit in the amount of previous pay.
Getting maternity benefit does not affect your creditworthiness – it is often a great asset. Why? If a woman receives sickness benefit during pregnancy (sometimes even 9 months), and then maternity benefit (12 months), it is a sign for the bank that during this time the woman has a steady supply of funds.
Mothers who are on unpaid parental leave are in a worse situation (you can choose it right after maternity leave). If they do not earn income from other sources, they must reckon with the fact that their creditworthiness will significantly decrease.
Good to know: What do banks consider when assessing your credit standing?
Sickness benefit during pregnancy? You have the right to receive sickness benefit in the amount of 100% of the basis of your remuneration. So if you feel unwell and can’t work, you don’t have to worry that your monthly income will be reduced. In accordance with art. 11 of the Act of 25 June 1999 on cash benefits from social insurance in the event of sickness and maternity, if the incapacity for work falls during pregnancy, the sickness benefit is 100% of the basis of the benefit assessment. This situation also does not affect your credit standing.
However, if you are not expecting a child, and your dismissal due to poor health is not caused by an event that took place at work, then you are entitled to 80% of the basis of your remuneration.
Creditworthiness and alimony
Alimony and creditworthiness – unfortunately, people who receive child support are in a worse position. It does not matter to the bank whether they are paid by one of the child’s parents or through the Maintenance Fund – in practice such a parent has little chance of receiving a cash loan.
A quick loan without checking creditworthiness offered by non-bank institutions can be a solution to the problem. A loan without creditworthiness is granted to persons who are over 18 years old, have Polish citizenship and can boast of stable income.
Read also: Can you delete a bad credit history in Retrodatabase?
Loans without creditworthiness in this case have one more advantage – the lender does not check the borrower’s credit history at the Credit Information Bureau or examine his financial situation.
Alimony and mortgage
The same applies to mortgage loans. A parent who receives maintenance does not have sufficient creditworthiness to obtain a mortgage. The way out of this situation may be taking a loan from someone from a close family – e.g. a child’s grandparents.
Creditworthiness – how to calculate?
How to check your credit standing? We present two of the most common ways to assess creditworthiness.
- Check your ability at any bank
The bank will “scan” your credit history based on a report from the Credit Information Bureau database. Perform quantitative and qualitative analyzes. The first one will consist of checking your financial situation and comparing revenues with expenses. Qualitative analysis verifies that you will be able to pay your monthly liabilities on an ongoing basis.
The bank will ask about your age, marital status, professional situation and how many people are dependent on you.
- Calculate creditworthiness using the creditworthiness calculator
This is definitely a more convenient and faster option. Using a calculator, available, among others On SumMoney, you can check your credit standing – both when applying for a cash loan and a mortgage.
If you want to check your creditworthiness thoroughly, remember to check it also at Retrodatabase. It may turn out that you have some arrears in paying your debts on time and you don’t even remember about it.
The calculator will calculate your creditworthiness in minutes. This is an extremely intuitive tool that will easily allow you to check your own credit options. If you want to apply for a cash or mortgage loan and would like to check your credit standing before doing so, you can use the SumMoney creditworthiness calculator
To determine your credit standing, you’ll need to provide:
- repayment period (for how long you plan to take a loan),
- loan interest rate
- type of installments – equal or decreasing,
- information on your current obligations (credit cards, installments from other loans, maintenance, etc.),
- the number of people who stay in the same household with you,
- and monthly income.
After filling in all the data, just click “Calculate your creditworthiness” and then you will receive information on how much credit you can afford. Of course, the calculations presented are only approximate (it may vary depending on the bank) and you will receive a thorough verification of your ability at the bank. However, this allows you to assess your options.
Checking your credit standing yourself is not difficult. In addition, checking the ability through the calculator is not recorded anywhere, which means that you can use it as many times as you like – whenever your financial situation changes.