Guide for customers with bad credit history
Non-bank loans with bad credit history – where does the credit history come from?
The concept of creditworthiness is defined by the Banking Law, which translates it as the possibility of repayment of the contracted liability together with interest within the period specified in the contract. This is one of the most important elements of the credit procedure and it mainly depends on it whether we receive the loan or not.
Building your credit history begins when you sign the first loan or loan agreement, make an installment purchase, or set up a credit card. From now on, our data, along with information regarding the debt, will appear in the Retro database and each bank will be able to check how we deal with repayment of liabilities before granting us another loan. Sounds dangerous? It shouldn’t.
Often, the lack of credit history is worse than a bad history in Retro, because in such a situation the bank has no idea what our financial situation is and we remain anonymous to it. A positive credit history in Retro is mostly the result of our work. Below we have placed a mini cheat sheet – how to build a good creditworthiness in a few steps.
Rule No. 1. Pay all liabilities on time.
Rule No. 2. Monitor your history on a regular basis, and not only when you are thinking of taking another loan. Constant control will allow you to quickly take action as soon as you notice something disturbing.
Rule No. 3. Don’t be anonymous. If you don’t have a credit history yet, use credit for small items or create a credit card.
Credit card history
If you do not want to take a loan, be sure to think about creating a credit card. This is not only a good way to get an interest-free loan, but more importantly, regular repayment is enough for you to build a good credit history.
Rule No. 4. Remember to consent to the processing of your repaid loan data.
Rule No. 5. Don’t take too many loans so you don’t fall into the debt loop.
Rule No. 6. Talk. Do not avoid bank advisors if you know you have a problem paying off your liability. Try to find with them the optimal way to get out of debt.
Do you know that…
is it easy to check your credit history yourself? Just go to the website of the Credit Information Bureau and download the report. A single report costs PLN 39, but you can also purchase an annual package of 12 reports with additional services.
If for some reason you did not manage to comply with the above rules, forgot about the debt repayment deadline or took a cash loan that you can not cope with, then remember that bad credit history is not a judgment yet.
You can start working on improving your ability at any time, and if you need extra cash right now, don’t forget that there are loans with a bad credit history on the market.
Retro credit history – how to improve?
Information regarding a given borrower is usually stored in Retro databases until the given liability is repaid. These data are updated at least once a week, after the bank provides information on the next installment payment.
If you manage to repay the liability on time, then information about this loan becomes invisible to financial institutions, which in the future will check your credit history. The situation is different if you have agreed to the processing of data on repaid loans. Then the banks see all your past liabilities, together with the information that they have been repaid on time.
The problem arises when your commitment is not repaid on time. If you have been late with the installment payment by more than 60 days, then the information about such debt is stored in the Retro database for 5 years. Unfortunately, you cannot modify or delete this information yourself, just wait until the annotation is cleared from the database.
Non-bank loans with bad credit history – how do they work?
A loan with a bad credit history is a product that can only be found in the offer of Metalybank or other non-bank institutions. Most often they appear under the name: payday loan without Retro, Loan without Retro or, more rarely, payday loan with bad credit history. These types of loans are granted without checking in the database of debtors’ registers whether the customer has repaid or repays the liabilities incurred.
However, the lack of control by the lender has its pros and cons. An undeniable plus is the fact that the customer does not have to worry about the information on late payment of previous obligations will affect the credit decision, because he will receive the loan anyway.
In addition, this decision is made almost immediately, which significantly speeds up the entire process. However, the lender must somehow compensate for the lack of information about the customer.
The most common compensation is the higher cost of credit. These types of products are much more expensive than loans taken from the bank, and are also granted for a shorter period (usually 30 days). The high cost of non-bank loans with bad credit history does not only mean higher interest rates or commissions. There may be other fees that affect the final cost of the loan.
Most often, Metalybank charge additional fees for sending SMS with reminder (up to PLN 100), extension of repayment deadline or debt collection activities. Therefore, before applying for a loan, you should read the detailed costs of these services very carefully.
Non-bank loans with bad credit history – offers
Loans for those in debt with a bad credit history are for people who have trouble getting a loan from a traditional bank. The multitude of such offers confirms the belief that bad credit history is not an oracle and does not block access to financial assistance. Below are the offers of the most popular Metalybank, which when granting loans do not check the borrower’s data in Retro.
Payday loan with bad credit history:
- Short-term loan
- instant pay!
- net Cash
A quick loan with a bad credit history, fortunately, does not have to cost so much. When looking for offers of payday loans, it is worth reviewing above all the proposals of companies that grant the first loan for free (0% APRC).
Then, if we make the repayment on time and no additional charges are added to us, we will be obliged to return exactly as much as we borrowed. Before making a choice, it is also worth checking the current ranking of payday loans or using a comparison engine and comparing several options. The use of these tools will definitely help us make the right choice.