The loan history is the real cover letter that can show a candidate to receive any of the quick loans that are currently offered.
In the following lines, we will explain what this collection of information consists of and what benefits it brings to savers and entrepreneurs who opt for online loans .
Other information to be valued by banks
The protagonist of our article supposes an information to which the conventional banks that nowadays operate in our financial system are not willing to give up.
The intervention they suffered after the economic crisis recognized in 2008 implied that the public authorities demanded greater zeal in controlling the guarantees by which the loans were granted. In this way, we go from a period of certain facilities to one, the current one, based on some rigors that can significantly impede access to loan.
The guarantees, the payroll and the absence of delinquency records such as those of ASNEF and RAI became indispensable requisites to obtain certain loans. Given the complexity of meeting all of these access conditions, many entrepreneurs and savers sought an alternative in online banking. This, without neglecting the guarantees of return (requires, in this aspect, a source of regular income), does not impose such strict requirements.
However, the aforementioned records are among the information that their managers assess the risks of the granting of the loans consult. For that reason, it is worthwhile that we repair its essential characteristics.
What is a loan history?
This documentation is of great importance when it comes to interacting with banks and other economic actors. Broadly speaking, it is a record of all operations of an economic nature related to financial institutions.
But the information contained in these collections not only refers to the payments and defaults of the loans granted, but also to other types of operations, which are recorded in this record. Among other data, we refer to the debts that appear with the banks or other alternative loan entities, invoices generated in the operations carried out in the stores and contractual relationships that are maintained to pay for services such as telephone, electricity or television. of payment.
On the other hand, these reports can become guarantees for the attainment of loans or impediments, practically insurmountable . For example, in the case of not having unpaid accounts and paying punctually the installments of the loans that one is enjoying, this documentation will constitute an optimal presentation letter in the relations with certain economic agents, such as suppliers, other companies or the banks and lenders. On the other hand, if the delinquency or lateness of the payments is recorded, the aforementioned actors will not take into account the client’s reliability; so, usually, they will refuse to lend you money.
There is no doubt that traditional banks use these records, which, in addition to deciding between granting or rejecting the loan. They serve, in the event that, finally, there is acceptance of this, to set the specific conditions of the financial product that will be offered to the customer and its amount. On the other hand, online banks apply less rigorous grant methods and with simpler and more agile dynamics (largely due to the possibility of operating via the Internet).
Therefore, these records have a greater influence on the processes related to the approval of personal, mortgage or high-value loans , which require a more detailed study of the risks. We must bear in mind that the losses for banks, in cases of refunds that do not occur, are higher than in the context of providing quick loans or microloans.
In addition, these records are contrasted with the presence in delinquency files such as RAI (Record of Unpaid Acceptances), ASNEF (National Association of Financial loan Establishments) and CIRBE (Risk Information Center of the Bank of Spain). A person can appear in them for a negligible amount or an error, which can be unfairly key at the time of receiving a loan.
The benefits of loan history when it comes to getting quick loans
Here is a brief review of the advantages of having a loan history up to date on all payments.
Most profitable contract conditions
First of all, we must value that being, in this aspect, “clean”, implies not only having more possibilities of receiving the desired money, but also being able to count on some favorable bargaining opportunities. In this sense, using this advantageous service sheet can mean that the bank is ready to lend the money with interesting conditions. Conditions such as a lower interest rate, increased amount or return period adjusted to the specific needs of the client.
Access to online loans and other financial products
loan institutions, both current and alternative, have a range of financial products adapted to the profiles and specific needs of customers. The proof of reliability of the history, on the other hand, will suppose all an endorsement, a letter of unbeatable presentation. So that the bank employees are totally predisposed to teach the client their portfolio of products and advise those that best adapt to the characteristics observed in the documentation acloaning the presented accounts.
Avoidance of problems associated with delays
The delays not only generate a bad relationship with the different lenders, but also can cause payments with higher interest and other penalties (economic or derived from other sanctions). Likewise, the transmission of information to the delinquency files previously indicated by the banks, supposes an undoubted damage to the reputation of the borrower.
Finally, in the same way that banks study our loan history , we should use loan comparison, such as Bank , to choose the one that best suits us.