Sometimes, applicants for a loan at a bank have no idea that the bank will also check them in a credit register that goes deep into their past. Financial houses will check your credit history not only in banks but also in non-banks.
Despite the negative entry in the credit register, one does not have to lose hope for a loan. He just needs to improve his repayment discipline and the bank can lend it again. In addition, financial houses differentiate whether you are in the registry due to short-term and one-time delays or are notorious defaulters.
“A negative entry in the register does not necessarily mean that the client cannot receive a loan. These are, for example, cases where a client has been in default one time, ” explains Anna.
Also for Good Finance, it is a fundamental difference whether you have been in a one-time delay of several days, or have been in regular delay or have been in delay for a long time.
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What causes a negative credit register entry
You can work out a negative credit register entry in a variety of ways. You are late in paying a loan for several days, you have been in an unauthorized overdraft on your account, you are not repaying a loan, credit card, mortgage at all, or you are a co-borrower or guarantor of someone else.
The first step to improve your bad debtor’s reputation is to pay for all the obligations you are late with. Consequently, you need to repay all your credit obligations properly and on time. It is important that you be consistent in repaying and do not get into a short delay. “If you pay off your credit obligations on a long-term basis, your credit score will be reassessed and may improve,” adds Melinda Burdan, Retail Director of Good Credit Post.
How to Improve Recording
However, the process of clearing out the default stigma takes a long time, because your debt information is kept in the credit register for five years after the full repayment of the credit.
You may also be improperly in the registry, but you must address this directly with the credit registry administrator or the institution that provided the data to the registry.
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“If the client proves that the information in the register is not true, the register operator will correct it,” adds Burdanová.
When applying for a loan at a bank, you should know that it will mistake you not only in the bank credit register, but also in the non-bank. He can already share Good Credit with non-banks.
Finally, you should know that any rejected credit applications are also entered in the credit register. Therefore, it is sometimes worthwhile to apply for a loan at multiple banks and wait where the application passes. In this case, we recommend that you inform the other Good Credit that you are withdrawing the loan after approving the loan application at one bank.