It is no longer true that only people who are on the brink of poverty apply for a loan. With the advent of the Internet and mobile technologies, the process has been much faster and simplified. The bank loan is paid to us immediately after approval, which takes only a few minutes, but there are still enough clients to look elsewhere.
As? where did the error occur? Due to low income, applications are rejected, but an even greater cause is when the bank finds that the customer under review has a negative record in the debtors’ registers. What with this? Will they borrow these people elsewhere or are they unlucky? Good Finance will tell you.
Non-bank loan without a register
It is common knowledge that non-banking companies do not actually consult the debtors register. How is it really? Before 2015, this was indeed the case that there was no such obligation, but that changed in 4 years. Now the Consumer Credit Act requires all banking and non-bank entities to sufficiently examine and assess the creditworthiness of the client.
What does it mean? Simply put, they have to find out with all available tools whether or not you will be able to repay the loan. The registers mentioned above share information with each other. On the other hand, having paid an invoice with less delay does not necessarily mean that you are haircutting. Non-bank providers are still much more benevolent than banking houses.
Credit registers, what is it for?
Writing in these records is not yet a disaster, as there are positive registers where all who pay their obligations on time are kept. As a result, these clients are more trustworthy and logically increase the prospects for other financial services such as mortgage or leasing.
Bank register of client information
Or BRKI is an extensive database containing contractual relations between banks and borrowers. Banks share this client information with each other. These are primarily data that represent how trustworthy and creditworthy clients are.
Non-bank client information register
These are companies that provide consumer loans and leases. Authorized holders can therefore verify the creditworthiness of their customers.
It is an interest association that tries to fight against the indebtedness of Czech citizens. We find not only non-banking companies, but also telecommunication service providers and even energy suppliers.
Central Credit Register
They were not CRC. This register is managed by the Czech National Bank and has the task of bringing together banks and branches of foreign banks in the Czech Republic. The main function is to provide information on credit commitments of entrepreneurs and legal entities.
Benefits of loans without a registry
- money can be obtained even for clients with worse payment history
- minimum administration and paperwork
- loan for people with lower incomes
- Quickly transfer money to your account
- convenient negotiation on the Internet
Disadvantages of loans without a registry
- low maturity, usually only 30 days
- high fees and APR
- the loan is payable on a one-off basis
- high penalties and fines if you do not repay the loan on time