Full definition
Creditworthiness is the borrower's ability to repay the loan and interest on time. Polish banks calculate it according to KNF's Recommendation S. The core metric is DSTI (Debt Service-to-Income) — monthly debt-service costs as a share of monthly net income. For mortgages KNF recommends DSTI of no more than 40% for income under 6× minimum wage and 50% above. Inputs: net income, cost of living (GUS statistics per household size), existing loan instalments, credit-card limits (30% of limit counted as obligation), alimony, rent. Factors that raise creditworthiness: permanent employment, 1+ year tenure, additional income sources, co-borrower. Factors that lower it: B2B under 2 years, existing BIK obligations, small children, foreign employment.
Concrete numeric example
Dual-income couple, 12,000 PLN net combined, no children, no obligations, GUS living cost 3,200 PLN for 2-person household: creditworthiness ~120,000 PLN for a cash loan or ~650,000 PLN for a mortgage (25 years, WIBOR 5.3% + 2% margin).
Related terms
DSTI
Ratio of monthly debt-service costs to net income. KNF recommends a maximum of 40–50% for mortgages in Poland.
BIK
The Polish credit bureau — central register of all loans, payday loans and credit cards held by Polish residents. Banks and licensed lenders are required to query BIK before every credit decision.
APR (Polish RRSO)
Statutory Polish indicator showing the total annual cost of a loan as a percentage — includes interest, fees, mandatory insurance and all other obligatory charges.