Credit history, along with income, is one of the main factors taken into account when verifying our creditworthiness. If in the past we had problems with repayment of liabilities and this was recorded in the debtors’ databases, we may have a problem with obtaining a loan – especially a bank loan. What about payday loans and a negative credit history?
Payday loans without bases and creditworthiness
Some non-bank loan companies offer payday loans without checking your credit history. Others, however, reserve the right to verify the databases of debtors and economic information bureaus, however, in the case of negative entries they are able to grant loans, but for example with a higher interest rate. Still other lenders completely refuse to borrow money in this situation. Loans without a credit history carry a high risk for both the lender and the borrower.
Everything really depends on the individual situation of the client. The situation is different if problems with repayment of an obligation occur sporadically and are isolated cases. And what else if the person applying for a loan has a lot of negative entries in the debtors’ databases, which proves that he does not regularly pay bills or does not pay loan installments.
Do payday loans build your credit history?
Cooperation with the Economic Information Bureau and with the Credit Information Bureau or the National Debt Register gives loan companies a much broader picture of the creditworthiness and reliability of a potential borrower.
It is thanks to this that the security of the non-bank loan market increases, which is focused on clients able to pay their debts on time. Loan companies cooperating with business information bureaus often not only provide negative entries, but also report loans repaid on time. In this way payday loans build up a positive credit history .
What do you get into the debtors’ registers?
You enter the debtors register for non-payment of financial obligations. The aspect of these obligations is quite broad and does not only include loans and credits. We reach the debtors’ bases for:
non-payment of bills for energy, gas, water or waste disposal,
arrears with telephone or postal services,
outstanding bank loans or non-bank loans,
unpaid liability insurance,
unpaid maintenance payments,
outstanding invoices, contracts etc.
Depending on the databases we have, negative entries can be made by companies, institutions and even natural persons – the latter if they have a final court order with an enforceable title. Before making an entry, however, you must send a letter of warning to the debtor about your intention to report it to the debtor’s register. Companies can make an entry if the debt is at least PLN 500 and 60 days have passed since the repayment date.