Affordability assessment

Creditworthiness assessment evaluates the ability of an individual or a company to meet its commitments. It covers income and its stability, fixed expenses, outstanding credit commitments, payment incidents and disposable income. The decisive question is that of the source. An assessment based on declared documents, payslips or financial statements, describes a past and self-reported situation. An assessment based on observed bank flows describes the actual situation, including undeclared credit. The new European consumer credit directive also strengthens the requirement for a reliable and documented assessment before any credit is granted.