It is undeniable that when most people listen or think of the term “Credit Bureau”, they associate it with something negative; however, it should not necessarily be that way.
To deter those bad thoughts, the best way is to know exactly how it works and what the Credit Bureau is for. And even if you don’t believe it, far from being your enemy, it can be even your greatest ally in your financial life.
What is the Credit Bureau?
To begin with, it is necessary to clarify that the Credit Bureau is a Credit Information Society that is responsible for collecting information on loans granted to create credit histories of the applicants.
Now according to information, its function, in detail, is to receive data from banks and financial institutions that grant loans to a natural person or default l.
Then, taking advantage of its technology, this information is cataloged and stored in a credit file under the name of the person who requested the financing. In this way, the company collects information on each credit that you or any person or company acquires, detailing payments and debts.
This means that from the moment you apply for a loan you are already in the Credit Bureau, that is, it does not depend on whether you pay or stop paying.
Am I in Credit Bureau?
Broadly speaking, both the Credit Bureau and the Credit Circle are seen as huge data banks, which have detailed information on the credit behavior of millions of people and companies. That is, they know perfectly well whether or not you are a good payer. What is not exactly bad.
That information is ground gold for financial institutions, since when you go to apply for a loan, the first thing they do is request your credit history from one of these two Credit Information Companies, which of course is not free, since they charge that service.
The content of that credit history is key, since it will depend, in large part, whether or not that financial institution grants you the credit you need. If the record is positive, that is, it proves that you have no debts, the chances of obtaining financing will increase. On the contrary, if it is negative and attests to your debts, they will most likely deny it to you.
How to improve my credit history?
Financial institutions are not the only ones that can check your credit history, because you can also do it whenever you want. If when you check it you find that it is negative because you stopped paying any credit, not everything is lost, you can start cleaning it by approaching your creditor.
For that there are companies such as credit repair companies that help you reach an agreement to settle your debt at a discount.
You can also know your history
Knowing your credit history is very easy, and especially free once a year. All you have to do is go to the page, fill out a certain form with your basic information and the company will send your report to the email you indicate.
Remember that taking a look at its history not only serves to know if it is positive or negative, since in it you can detect certain anomalies, such as queries from financial entities that have not been authorized by you, credits that you did not request or , debts for payments that you made.