Whether you have just applied for your first loan or have a long history as a debtor, you have heard and feared the so-called credit bureau.
It seems that everyone avoids at all costs end up in this dreaded bureau, but few know exactly what it is, is the bureau a bank, a public, private company? How do I know if I am the credit bureau? What affects me or benefits to be in the bureau?
Then we will clarify all your doubts about this mysterious “entity” so that you can have an excellent relationship with him and your financial life.
What is the credit bureau?
The credit bureau is a private company that is responsible for collecting all the information of those who have or have at some time in their life, had some type of credit.
In it, the behavior of the debtors is recorded, from the time of having a bank loan to a contract with the telephone or cable company.
All credit companies send this company information regarding your compliance with your debts, which is reflected in the credit bureau report in which, taking into account all the information provided by the companies, you are given a rating that gives you will serve you and other companies before which you want to apply for new credits, to evaluate your behavior as a debtor, this rating is called credit score.
There are many doubts about how the bureau works, how a credit bureau is consulted, who has access to it and how the credit score is obtained.
Here we present some very important information that will help you understand everything you need to know about the credit bureau:
1. Being in the credit bureau does not mean that you are a bad debtor, it means that you have a financial life. Everyone who has or has had a loan is in the bureau, there is no such thing as “leaving the credit bureau” to do so you should never have requested any loan of any kind.
2. The rating or credit score can be positive or negative and is generated based on several factors among which stand out: the credit limit, your payment history and punctuality with them, your pending or liquidated balances and the number of credits that you have had.
3. Financial institutions do not take into account only arrears in payments, but also their value and the number of days of delay, the type of credit due, etc.
4. Keep in mind that not all negative information is reliable, therefore, you should check your credit bureau from time to time so you can be aware of the status of your credit report. There are cases in which there may be.
5. If the bank does not announce the client before sending a negative report to the credit bureau, the record is null. Banks have a legal obligation to announce their clients at least 15 days before reporting as debtors.
6. Registered information does not remain throughout your life in your credit report, it is automatically deleted after a few years from the last report of the bank.
7. Everyone has access to visit your credit report by visiting the page of the free credit bureau. The credit bureau Mexico, must annually grant a credit report at no cost to access it, you only have to visit the credit bureau Mexico and request it.
8. The credit institutions take as one of the determining factors, at the time of deciding to grant or not a loan, your credit score. Since knowing your behavior as a debtor provides tools to know whether or not you are a reliable debtor.
9. Having a good credit score will allow you to access more and better financial opportunities. Credit can depend on your credit score for the purchase of your next home or car or for the start of a new business.
10. You can always make a claim if the information on your credit report is incorrect. However, if you access it too often it can affect your score, since the one that is seen frequently, it may seem for the credit companies that you are requesting multiple credits on a constant basis.
The credit bureau can be a very important tool to maintain control over your financial life.
In addition, its importance lies in the possibilities that can open or close possibilities to access credits that can help in such important events in your life as the start of your own business, the purchase of a house or a car, among other things.
Once you start accumulating debts, your credit score will quickly begin to reflect and changing a bad credit score can be a difficult task.
However, you should know that if you have a bad credit score you can always solve it, there are multiple options to change a bad credit score, this is a different topic, which you can read in future publications, however, it is important If you are in the situation of having a negative credit score, you will be informed and take immediate measures to solve it.
If this is your case, another option to take into account are personal loans without a credit bureau, which allow you to access loans immediately without having to check your credit bureau.
Being one of the main difficulties that people with a bad credit score face, not being able to access new credits that could solve their financial problems, new credit options have started to appear taking into account this situation and allowing access to credit to those Even with a bad history, they need financial help that could get them out of a difficult situation.
Now that you know everything you need, pay attention to the way you handle your credits, apply for your loans responsibly to ensure a healthy financial life and a better quality of life.