Lack of credit history
Lack of credit history can be just as dangerous as a negative credit history. What exact consequences can we expose then? More commentary at http://www.animalsatheart.org/apply-for-a-small-business-loan-online-get-an-online-business-loan/
When we want to apply for a loan or a loan, we do not often have to provide documents confirming our income. In the case of smaller amounts, it is usually enough to have an ID card. This does not mean, however, that the creditor or lender is based only on this identity card – the information included in various databases, including the Credit Information Bureau, is also taken into account.
Retrodatabase, or Credit Information Bureau, is a nationwide database, which is used not only by banks but also by credit unions and non-bank loan companies. It deals with collecting, storing and sharing information on the credit history of Poles. Based on the data contained in retrodatabase, we can build your creditworthiness and credibility.
Each of us begins without a credit history
Every person begins his life without any credit history – it’s understandable because when we’re young, we can not make any contracts yet. However, when we are 18 years old, that is, we already have the opportunity to take loans and credits, we can start building this story.
The first entry in retrodatabase about us will come when we borrow money from a bank or non-bank lending institution for the first time. It can be a loan in installments, a payday loan, bank or non-bank cash loan, even debit, ie a limit on your account or credit card.
However, if there is no information in retrodatabase about us, a problem arises – we may not receive any loan or credit. Why is this happening?
No credit history is a risk
First of all, this is due to the fact that the lack of a credit history is a greater risk for the bank or loan company that the client is asking for. At that time, she does not know exactly what the client’s financial situation is or can he pay off his obligations on time, because he has no access to past data.
We can compare it to a situation in which a stranger asks us to borrow money, and we do not really know anything about him. No wonder we would not have lent him money in this situation.
This applies above all to apply for loans and higher loan, for example, automobiles, housing or the cash, but the large sums amounting to tens of thousand. The lack of credit history recorded in retrodatabase does not mean that we will not be able to borrow any money at all.
Where to take out a loan without a lack of credit history?
As mentioned above, the main reason for refusal is to apply for too large amounts in the absence of a credit history. It is worth starting with smaller sums, for example taking a non-bank or installment cash loan for several hundred zlotys. You can even pay it back at once, but retrodatabase will then leave a positive mark after us, which will then help us to make a bigger commitment.
Thus, a lack of credit history can be a problem when we want to borrow a larger sum. Then it is best to take a smaller loan, so that you can then take them at an ever higher level.