What is credit history and credit score? Why do you need to know it in advance?

A huge number of banks today are ready to provide assistance to solve most of the financial problems and needs. A loan can be obtained either by a firm or a company, or by an individual. Over the past decades, such agreements have been firmly rooted on an ongoing basis. A lot of life situations are forced to apply to the banking services of a simple man in the street, in the hope of a positive response when applying for a loan. The first, as well as subsequent similar appeals, are recorded and stored in archives for 10 years and has a name – bank, credit histories. They form the credit score of a person.

What kind of information is stored credit bureaus

When it comes to the check of credit history, people turn to credit bureau. What kind of information is stored there?

  • Personal data (passport), identification code, information on employment, marital status and so on.
  • Information on monetary obligations: size, parties, step by step payment and closing of the loan. Also, data on overdue payments with detailed descriptions of subsequent payments are saved.
  • Information about the solvency: if any, there are all sorts of problems with ship decisions on property or loan agreements, taxes.

When you make a new loan, only with the consent and official permission of the client (mainly when drawing up the contract), the credit history is checked. The bank produces a request to the main database of the bank involved in the agreement in order to approve or reject the request of the borrower. There is also the EIS – “Register of Borrowers” ​​(Unified Debtor Information System), created to reduce the risks in transactions.

Why do you need to care about you credit score?

If there are errors in the payment of credit funds in the past – bank credit history will be spoiled, and the chances of getting help in almost any branch of the bank are reduced to zero. That is why it is necessary to carefully observe the conditions prescribed in the contract.

Example. I turned to the branch of a Bank to get money for a new mobile phone. They refused, saying that I didn’t pass a credit history check, although I hadn’t applied to this bank before.

It often happens that during his life a person can use banking services many times and get loans in various institutions: to buy equipment, cars, food, and so on. There is no need to keep records, as it is possible to check credit history online. Using the Internet at any time to get information about whether you are a desirable client or not.  

Each online credit history check will cost some little money, however one is free, once a year. If you decide to take a new loan and check for free if there are no fines or negative history behind you, you will have to send a letter by mail directly to credit bureau with a full list of required documents. All of the following documents must be certified by your signature and date:

Information about frequent cases of fraud will also be useful. Often the debtor, without making out a loan on his own, is faced with the fact of debt. In order to avoid such frauds, it is necessary to make secure and the Status Control service will help in this. Using this option, you will receive messages on your phone, and you will be able to monitor any changes in your credit history: repayment, debt, attempts to issue, and so on.

Is credit or loan available without a credit score check?

Naturally, it is wonderful when there are own funds for unplanned expenses or financial savings of friends “come” to the rescue. However, as practice shows, in most cases people turn for help to banking institutions (the reason is simple: friends also do not have the necessary amount of money for a loan) in the hope of quickly issuing a profitable loan program to solve their financial problems.

Pitfalls of lending money in different places

It is not a secret for anyone that it is more than realistic to issue cash loan funds in the Philippines if the borrower meets the requirements of the bank. Typically, such a list of requirements contains:

  • age restrictions (it is possible that the age range may differ for men and women),
  • the presence of mandatory documents, such as a passport, certificate of identification number, certificate of income from work or government agencies and so on.

A separate item in the long list of banking conditions necessarily includes the phrase “credit history” or, alternatively, “positive credit history”.

Is loan without history possible?

The question arises: if a person first applies for financial assistance to a bank, is it possible to get a loan without a credit history? After all, whatever one may say, financial institutions are reinsured by issuing loan funds to the borrower for a certain period “on parole”.

Let’s still understand in what cases and under what conditions you can get a loan without checking the credit history. It should be noted that the possibility of using borrowed funds with minimal effort in the form of collecting documents and submitting personal data to a financial institution is unlikely to succeed.

The difference will be noticeable only if you decide to cooperate with a large bank and borrow a large amount of money. In addition to these mandatory documents, you will most likely be asked to provide additional references and information from various institutions. In this case, the item “credit without checking credit history” cannot be circumvented. In addition, if there is no credit history, most likely the borrowed funds will not give you or will give you on more stringent conditions.

There is another option: bypassing / calling the banks in order to clarify whether it is possible to issue a loan without checking the credit history in a particular financial institution, and at the same time to clarify the list of necessary documents. Is it acceptable to decide this way of searching for everyone personally? In any case, even a negative result in the form of “we do not give out money in debt without a credit history” is also a result.

Credit without verification is real

If your situation approximately corresponds to the following description: “they don’t give me a loan without a credit history, but I don’t have it because I never made a loan” or something like that – do not despair. There is an exit!

On the Internet for quite a long time, the online lending services in the Philippines have been successfully operating. It is through this service that it is quite realistic to issue borrowed money without checking the credit history. True, this does not mean at all that no documents are required. However, the terms of the loan are different from similar portals, ease of accessibility and ease of use of the system.

Money without a credit history check can be issued by citizens of the Philippines aged 18 to 75 years after passing a quick registration. It should be noted that for the smooth processing of a loan without a credit history, it is necessary during registration to correctly indicate the main passport data, the identification code number, and the details of an active bank card.

How to choose the most profitable loan in the Philippines? Five Tips for a Borrower

Despite the deplorable state of the economy and the lack of stability in the country, financial institutions in the Philippines continue to amaze with new lending programs. Sometimes to understand and choose the appropriate option is not so easy.

Which loan is still better?

There are several especially sought-after options that should be considered when a question arises – which loan is the most profitable? Each differs by different interest rates and terms, has a separate set of documentation and special conditions. That is why the benefit of the credit program can be determined only by the borrower, relying on their needs and opportunities.

  • Turning to the banks will get a favorable loan in terms of interest rates. The institution will certainly require proof of solvency and all the necessary list of documents, giving the opportunity to take a fairly large amount for a decent period (from 6 months and up). This option is suitable for those who are not constrained in time and have the availability of documents and impeccable credit history.
  • Turning to microfinance organizations (MFIs), it will turn out to take the most profitable loan in terms of the speed of processing and the provided papers. Online services do not require a certificate of income and superfluous information, except for a passport and identification code. It also does not need the involvement of guarantors and calls to the employer.

Online services make a decision as soon as possible, a maximum of 15 minutes, and transfer funds to any bank card within an hour. Funds can be taken without leaving home for up to a month. There is the possibility of extending the loan an unlimited number of times. Profitable cash loan is not cheap, but indispensable in difficult situations.

This option is suitable for those who do not have the time and necessary documents. Also, the MFI is famous for its loyal attitude to a bad credit history, and in many cases it issues a profitable loan, focusing only on the data filled in the online application. Read more about credit score https://www.equifax.com/personal/education/credit/score/how-is-credit-score-calculated/

What should the borrower know about loans?

It is worth remembering, the more information is provided to the organization about the borrower, when obtaining permission for a favorable cash loan in the Philippines, the lower the interest rate on the loan and vice versa.

In order to get a large loan, you will have to make a pledge, in the form of property or real estate. When choosing an institution, follow a few helpful tips:

  • Choose an interest rate calculated on a monthly basis, often by institutions offering an annual rate;
  • Favorable credit conditions imply a reduction in interest on the balance of the debt;
  • Pay attention to the availability of down payment and refund dates;
  • Consider the amount of fines in case of delayed payments;
  • Before entering into a transaction, ask about the availability of additional conditions, such as usage fees and insurance in case of a dollar increase.