Sometimes, after paying the monthly rates for years in time, struggling with the everyday life and with all the problems on your head, you would discover that you have negative records in the credit bureau! How is this possible? there are numerous reasons for which the clients of banks end up being recorded with poor credit personal loans in the credit bureau, even if they are not guilty/ let’s see why this happens and how you can solve this matter.
Reporting the poor credit personal loans
Before being reported to the credit bureau, the bank has the obligation to announce the client. If the client is not able to pay the rate, he will have to announce the bank, with the goal of reaching an agreement. Sometimes, the bank accepts a delay, if the client has a solid justification. For example, being fired from the current workplace or catching a severe disease might be considered solid reasons for which derogation is made.
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The problem is that the reporting departments of banks are not that well prepared. The derogations are approved rarely, so the client might end up with a paper stating that he is allowed to cease payments for a while, but the bank will continue to record the delays in the credit bureaus. This is why you need to keep all the additional documents safe. Don’t throw away the approval of ceasing payments as soon as you left the bank, as you never know when you need it.
Getting the home loans for bad credit
In the case of personal loans, the bank does not have so many methods to force the clients to pay. Besides recording the delay in payments with the credit bureaus, the bank has nothing to do besides filing a law suit against the client. The bank will have to wait for the solution to be given by a court of law, and then to force the client to pay. This is an unwanted scenario for the bank, as it means time and money lost. This is why the bank needs to find an agreement with the client, where it is possible.
The home loans for bad credit are usually approved because the warranty is the house itself. In other words, even if you have a bad credit, you will put the house that you are about to buy as warranty. This is enough for the bank, because they will get the house in case you are not able to pay the rates anymore, well, you will not want that, and the bank wants to avoid foreclosure also, so make sure that you have the monthly sums necessary to pay the rates even before applying for such a credit.
Check your credit score at least once per year. Even if you don’t want a new credit, you are entitled to one free interrogation each year. As said before, the banks can make mistakes, and by obtaining this credit report, you have the possibility to complain in time, in case those mistakes happen.