Loans reported credit bureau: what is credit bureau reporting?
Many Italians see a loan refused because they are reported as bad payers by credit bureau, a credit information system that banks and financial companies turn to before granting a loan.
credit bureau provides credit institutions with all possible information on the financial situation of entities applying for loans and loans, in order to limit the risk of insolvency. At the time of the instruction of a new financing practice, the system collects the applicant’s data, which, once the loan has been disbursed, are updated monthly based on the repayment trend.
Subjects who have had problems in repaying a loan, such as delays in paying one or more months or insolvency, are reported as bad payers. Obviously, a person reported in the credit bureau finds many problems in obtaining a loan, however there are lenders that grant credit bureau reported loans.
Generally these are loans on assignment of the fifth or loans with delegated payment, since they are types of loans in which the credit history of the applicant has no relevance, but only the debt situation is assessed to prevent the customer from getting into excessive debt and unsustainable.
By taking out a loan on assignment of the fifth, the loan is guaranteed by the income received by the applicant. This type of loan is repaid by direct reduction of the installment from the client’s salary or pension.
The employer therefore undertakes to repay the loan by reducing the amount owed by the employee on a monthly basis and paying it to the bank providing the loan. Pensioners and employees hired on fixed-term contracts can access credit bureau loans.
Loans to bad payers reported to credit bureau
When we talk about bad payers we refer to all those subjects who have had difficulty in repaying a loan. consumers who are reported in SIC databases as financially unreliable subjects and therefore often find it difficult to obtain new financing. However, some banks lend to those reported in credit bureau. Let’s see how.
credit bureau SpA is a private company that operates as a Credit Information System (SIC), collecting information relating to the creditworthiness of individuals and businesses. The information contained in the credit bureau database is accessible to banks and financial companies that can consult it before granting a loan in order to assess the probability of insolvency of the subjects who submit a credit application.
The credit bureau lists also include the names of the so-called bad payers, i.e. all those who have had problems in repaying a loan or mortgage. Once you are registered as a bad payer, obtaining financing becomes quite difficult, but still not impossible.
Thanks to their particular structure, in fact, some types of financing allow you to grant loans to those who are reported in credit bureau as a bad payer. Among these we find the assignment of the fifth.
A form of financing that provides for the repayment of the credit through an amortization plan in monthly installments, directly deducted from the debtor’s pension or salary. As the name suggests, the assignment of the fifth provides for a maximum installment equal to one fifth of the salary or monthly pension received by the applicant.
The assignment of the fifth and the loans changed
Since it is guaranteed by the presence of an income, the transfer of the fifth can also be granted to bad payers. Another factor that facilitates the granting of loans on assignment of the fifth to bad payers is represented by the fact that the repayment of the installments takes place by the employer or by the social security institution that pays the pension of the beneficiary of the loan.
Subjects who undertake to deduct the amount of the monthly installment from the income of the loan beneficiary and pay it to the credit institution that provided it. In this way, the bank is sufficiently guaranteed by the risk of insolvency on the part of the debtor.
Another form of financing that allows loans to be paid to those reported in credit bureau is the so-called double fifth, also known as the delegated loan. This is a loan that follows the same logic as the transfer of the fifth, but whose monthly payment can go up to two-fifths of the salary or pension.
Unlike the transfer of the fifth, the delegated loan is not accessible to pensioners, but only to employees. Finally, remember that bad payers who want to get a loan can resort to loans with promotions, in which the monthly installments correspond to predated promissory notes.
When you are enrolled in the list of bad payers you happen to encounter difficulties in accessing credit, which is why it may be necessary to request bad pay cancellation credit bureau.
Bad credit bureau cancellation payers can be requested by following a very simple procedure. First of all, it is essential to access the official credit bureau website and download the application forms (remember that there is a version for individuals and one for companies).
The forms must be completed in every part and uploaded online together with a valid identity document.
To complete the credit bureau bad payers cancellation procedure, it is necessary to complete the specifications in the previous paragraph and then wait 15 days to receive a registered letter containing all the specifications relating to your credit position and the reason why you are registered in the list of bad payers..
The document in question shows in detail the amount of the debt and the number of past due installments. The cancellation times from credit bureau depend on these data and the regularization of one’s position.
credit bureau bad payers cancellation: how long does it take to materialize?
To this question it is possible to give a different answer depending on the time that passes from the regularization of the payment and on the basis of the number of installments with which it is late. Here are the rules to follow:
- Delay in the payment of 1/2 installments: possibility to request the cancellation of one’s name from the credit bureau after 1 year from the regularization of the payment.
- Delay in the payment of more than 2 installments: possibility to request the cancellation of one’s name from the credit bureau after 2 years from the regularization of the payment.
- Failure to regularize one’s credit position : possibility to request the cancellation of one’s name from the credit bureau after 3 years from the natural expiration of the amortization plan.
How to apply for a loan pending cancellation?
Applying for a loan pending credit bureau bad payers cancellation is possible if you know the right alternatives. Which ones are they? Among the most advantageous it is possible to mention the assignment of a fifth of the salary or pension, a formula for access to credit, the grant of which does not require consultation of the databases.
Another useful option in this regard is the promised loan, a product which, as is clear from the name, is based on the payment of promissory notes within a certain date established when signing the contract (the loan holder has the possibility in any case to convert the bill of exchange into money).
The last alternative for those reported in credit bureau who want to access credit is the loan with guarantor, which provides for the presentation of a financially reliable entity, which undertakes to honor the financing in case of problems by the main beneficiary.
Loans to protested and reported in credit bureau: how to get liquidity again
Credit and financial institutions hardly grant loans to those who are reported in credit bureau as bad payers, subjects who have had late payments or outstanding payments on previous credit lines or loans still in progress. A critical condition but not incompatible with the acquisition of new liquidity. Let’s see what the solutions are.
The reports that attribute bad payer status to the customer are recorded in specific databases, such as credit bureau (which is actually only one of the software used by credit institutions).
When the bank receives the loan request, it checks the applicant’s profile in these specific databases. If there are negative reports, an expression of late payments, the application is usually rejected, and this sometimes happens automatically.
Loans to protested and reported in credit bureau: the assignment of the fifth
However, there is a solution for bad payers who intend to obtain liquidity again: the transfer of the fifth. This particular method of repayment of the loan provides for the direct withdrawal on the paycheck of the installment relating to the loan. A constraint that prevents the customer from presenting delays in the repayment plan.
However, we must consider that the banks willing to offer the assignment of the fifth to the bad payers require customers to have an essential condition: the possession of a paycheck that guarantees the repayment of the loan. Better if the applicant is an employee who has a permanent employment contract. The assignment of the fifth is also valid for pensioners.
The crisis of recent years has led many people to have difficulty honoring payments. The main consequence in these cases is the registration with credit bureau as bad payers or protests. This is an obstacle that can make access to credit difficult but not impossible. Fortunately, it is possible to use loans to report to credit bureau to make it happen.
The galaxy of loans for reported to credit bureau includes several products. One of the most requested is undoubtedly the assignment of a fifth of the salary or pension. This non-finalized loan can be requested by permanent workers or by retirees with non-welfare treatment. Its provision clearly does not provide for the control of databases.
Knowing the loans for reported to credit bureau necessarily means to deepen the characteristics of the loan against assignment of the fifth of the pension or salary. First of all, we remind you that it is a fixed rate product and that the maximum duration is 120 months.
In the case of loans against the transfer of one fifth of the pension requested by customers of particularly old age, the 60-month limit can be considered as the limit. Loans of this type are made available by various credit institutions, which consider different maximum figures to be required.
For a specific example in this regard, reference can be made to the transfer of the fifth with Astro Finance, which allows access to a maximum amount of $ 75,000. With Unicredit, on the other hand, you can request a loan against assignment of the fifth considering an amount that can go from $ 47,000 to $ 72,000.
Changed loan: product information
Another solution to consider when discussing loans for reported to credit bureau is the changed loan. This product, which is recovering popularity after several years of crisis, is based on the signing of promissory notes.
A promissory note is an executive title with a forced nature. This means that the reality that issued it can retaliate on the client’s assets in the event of insolvency, this without requiring the prior opinion of the judge.
Loans are also fixed rate, but are characterized by a slightly higher than average interest rate. What is this choice due to? The fact that banks and financial companies consider them to be products at risk as they are also accessible to bad payers, protests and customers without a paycheck.
A further solution to consider with regard to the loans for reported to the credit bureau is the lien credit. In this case, investigations are not necessary, as it is enough for the customer to pledge a precious asset of his own property and to pay the installments and then redeem it at the end of the repayment plan.