Say no to credit without credit history
June 8, 2019
There are several factors that can cause you to fall when several companies offer you some credit without credit history. Some of these factors may be the fact of not having a loan registry with financial institutions or having bad credit bureau notes.
In spite of this, it is important to keep in mind that when a financial institution offers you a loan without first checking if your ability to pay gives you for it, or if you have other debts, the only one harmed will be you, this can take it as your first lesson in matters of financial education.
The perspective that this document gives to the grantors
Without the perspective that this document gives to the grantors, they could cause you to become over-indebted. The reason? In addition to knowing your profile as a payer, the firms that request the credit bureau consultation, as a key requirement in the process of accepting a loan, also verify how many debts you have and if your income allows you to pay them.
Credits are not always denied because you have a bad track record, but because the granting firm considers that your ability to pay is greatly reduced.
On the contrary, a firm that offers you a loan without consulting your special credit report will not have a perspective on what you owe and if you can pay it off, which generally represents a danger to you and your financial balance.
People have a bad credit history
In some cases it is not that people have a bad credit history, it is just that they have not applied for a loan in the formal financial sector. This prevents the grantors from knowing your profile as a payer, and therefore you will lose your chance to get it.
On some other occasions, we have misconceptions of what credit bureaus are, and it seems that it is “the coconut.” You hear the name and immediately think of a blacklist or debtors.
The reality is completely different, the credit bureaus have the records of the credits
The reality is completely different, the credit bureaus have the records of the credits that Mexicans have requested in the financial system; Being in a bureau is not bad, in reality the important thing is what qualifications you have as a payer.
Thus, all people who have ever had a credit in the formal sector, whether mortgage, automotive, a credit card, are automatically registered with the Credit Information Companies (SIC’s), which is the name with which the Bank in Mexico, has them registered.
Another common myth about credit bureaus is that they accept or reject the loan application, the truth is that it is the grantors who have the last word, SICs are not empowered to do something like that.
So before accepting a loan without checking your credit history, think twice, you could fall into a severe debt, which will be very difficult to get out of.