Three things that can affect your borrowing
17th of September 2019 |By MOMBO |Views:

Three things that can affect your borrowing

If you are looking to buy an asset in the not-too long distant future, one of the first key things you may like to work out is how much you can actually borrow. By having a detailed idea of what you can borrow, you can make adequate adjustments and in the long run to avoid getting disappointed by your potential lender. Here are three factors that can easily affect your borrowing.

Your income and commitment

Before any genuine lender like Mombo iCapital gives you a short or long-term loan, he will want to know how much you can afford to repay. To determine this, he will look at your current income as well as any outstanding debts that you may be having. The information he collects will help him determine whether you qualify for a loan and if you do, how much money he can lend you.


Before approaching your lender, get your house in order. Since you will want your lender to trust you with his money, develop reasons to convince him. Develop a clear income stream if do not have one and work on settling any outstanding debt in arrears that you may be having.

You may also read: Pro tips to help you plan right financially.

Your credit history

Your credit history will always play a vital role in determining what your borrowing capacity is. If you can easily prove that you are a reliable customer who always meets his financial obligations on time, then you should not be worried. Of course, you may be disadvantaged if you missed one or two payments in the past and in the process ended up being blacklisted.


Before approaching your lender, get a copy of your credit history and see if there are any problems or red flags which you can address. You can obtain such a report of your credit history from the Credit Reference Bureau online or through the many CRB offices around the country.

Your financial deposit

It goes without saying, the more money you have in savings, the better your chances of obtaining finance and increasing your borrowing capacity. Basically, genuine lenders like Mombo Sacco like to see that you are able to save money over a period of time or as they put it, ‘have genuine savings’. Such savings normally brings out a clear picture of your financial responsibility and commitment.


Before approaching your lender, review your savings performance to ensure you have regular deposits. This way, you will be able to develop a positive financial image and in the long run increase your chances of securing a bigger loan.