Do you know what a debtor register is and what is it for? Each lender is required by law to always check the creditworthiness of the lender. To find out whether a client is able to repay easily, for example, can be through a proof of regular income. Another important indicator is the candidate’s credit register. Indeed, if a customer has ever been late to pay for a previous loan, a phone bill or a cable, he or she already has an exclamation mark at his name. In this way, the bank gets a picture of the payment discipline that plays a major role in the process of approving a loan application. Are you sure your name doesn’t hang in one of the debtors’ registers? Do you know how to get rid of the skin?
Getting into the debtors register is easier than most people think. All you have to do is forget to cash in the slip or be late with the internet payment. Obtaining a loan, however, when you have a little bigger skin, is an almost superhuman task. That is, in the case of loans offered by solid companies. On the internet, however, you will come across a loan offer without looking at the debtors’ register.
Kristyna took out a loan last year when the washing machine and the fridge left her in two weeks. At first she paid off properly, and a friend with whom she lived contributed monthly to her credit. When they broke up, her financial situation got worse, but she was still able to repay. But then Kristyna increased the rent and she found out that she wasn’t getting money anymore. Although she immediately began to look for cheaper housing, she was unable to repay the loan during the three-month notice period.
Every loan without a register is from a non-bank institution. They know very well that people with enrollment nowhere else get a decent offer, so they can set up monstrous conditions. While verified companies try to protect themselves and consumers and not indebted those who could get credit, institutions offering loans without registers usually want to make money on clients’ problems.
Do you know the registers and non-registries?
Central Credit Register – This is a register under the auspices of the Czech National Bank, where records of credit obligations of legal and natural persons are kept. It records all claims of banks and foreign bank branches operating in the Czech Republic. However, the CCR will be gradually replaced by AnaCredit (Analytical Credit Datasets). Multinational database under the management of the European Central Bank. Data collected by this institution will only apply to legal entities.
Czech Banking Credit Bureau keeps a database of credit relations between the bank and the client. It creates a comprehensive credit history where banks can find information about the creditworthiness, credibility and solvency of customers.
Czech Non-Banking Crdit Bureau, like CBCB / BRKI, combines information on clients’ creditworthiness. However, some non-bank companies that meet certain conditions also have access to this register, including a contractual agreement with the registry operator itself. A list of such financial institutions can be found on the database pages.
SOLUS Association for Leasing Protection and Loans to Consumers is an association of legal entities that include banks and non-bank companies, savings banks, energy distributors, telecommunications service providers, etc. The aim of the database is to provide a comprehensive view of the creditworthiness of clients of these institutions and thereby further prevent consumer over-indebtedness and financial loss of creditors.
Central Debtor Register is a project with which no major financial institutions cooperate, as it only obtains information from publicly available databases and does not actually have relevant information. You can’t go anywhere with CERD’s debts. The project is led by a company based in the USA, which is why Czech law is short on it.
Do you have a notch?
Of course, the bank will take into account the nature of the offense. A delay of a few days for one installment will look like a short financial crisis or forgetfulness.
Usually you have to be behind with a third consecutive installment to get your name into the registry. If you are now asking if you are on one of the lists, you are searching in the head if you have paid the bill in time, so you are not alone. Fortunately, you can request a statement from the databases to see if you are blacklisted somewhere before the bank snaps you into disapproving a loan application.
If you find it, you don’t have to catch your head immediately. The register also includes persons who regularly and conscientiously repay their obligations and their creditworthiness is positive. On the contrary, they can assist them in applying for a loan with a financial institution. As far as requests are concerned, they are also all recorded in registers, even if they have not been approved, as they indicate to the banks certain characteristics of the client and his / her access to finance.
When Kristyna finally moved to a cheaper one, she found out that she had a penalties on her loan. In addition, she needed to buy some furniture in the new apartment, deposit a refundable deposit and pay a fee to the real estate agency. The financial reserve has already been exhausted. Being afraid of other charges, she decided to take the loan again. It would pay the debt and start from the beginning. However, the bank rejected her application because she was in the registry. After a brief consideration, she decided for a non-bank company that provided Kristyna with a loan without a register of huge interest and APR.
If you have a debt, you must first find out who you have the debt to remove from the registry and then pay the interest with interest. It will also take 3 to 4 years for the information to disappear from the system. In the case of telecommunications services, this is usually only one year.
We guarantee even smaller amounts
Loans without a register are risky for financial institutions, as they are mostly applicants with lower creditworthiness, or less ability to repay the loan on time. Banks try to avoid a situation where a person takes a loan that is not in his power to repay, because it brings problems to them and the client. Conversely, non-banking institutions specialize in this type of credit. Due to the risk, they can also set a high APR and interest rate on loans for smaller amounts. However, there are also bids for five or six-digit amounts. In such cases, arrest is always required. Mostly it is a property that actually has much higher value. But the institutions are most interested in it. For clients with poor creditworthiness, they expect a low ability to repay, thus a higher chance of forfeiting their property.
Consolidate more loans
If one gets into debt, it is not a solution to break the loan with a loan. He wants to solve his situation immediately. Helpers with financial problems can also find free help from experts. If someone has too much debt and the monthly repayments overwhelm him, he still has a chance to reduce them by up to 50% through consolidation. In this case, the bank will pay off all its liabilities and will merge them into one single loan that the debtor will now repay. This merger also includes credit cards and overdrafts.
Kristyna got sick and was treated on the bed for a month. After another two months, she found out that she was unable to pay the installments. The conditions of the non-banking company were disadvantageous for her and burdened her budget unbearably. She was at the bottom. She took another loan and got into a spiral that led her to personal bankruptcy.
However, financial institutions always have a set threshold that all commitments can collectively reach. Mostly, it is also necessary to extend the maturity period, but many institutions allow for postponement of installments for several months, so that one can stand still on consolidation. Although only a small percentage of consolidation is approved for banks, it is definitely advisable to contact them first, rather than contacting a non-bank institution.
Loan even during execution
Charges for execution are paid by the debtor. It is therefore not worthwhile to prevent the bailiff from working.
Some companies also offer loans to people who are in execution. Even loans are often straight in cash as it is believed to have frozen accounts. What if she has children and suddenly doesn’t even have food? Just cutting the debtor from his money often forces him to seek help from a non-bank institution because he has no funds at all. Of course, the person is only pouring oil into the fire. The debtor is still allowed to withdraw a maximum of twice the subsistence minimum, but must go to a bank branch to negotiate with them. It is best to inform the bailiff of the situation immediately and explain his situation. Then agree with him on the next steps. An appropriate way is often to prepare a repayment schedule, which will be able to repay the debtor. Another option may be debt relief.