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When entrepreneurs apply for a loan at Fine Bank, they sometimes ask, “in what bases” does Fine Bank verify the credibility of its borrowers? Some people probably have already come across the name The Credit Information Bureau. If you hear it for the first time, I invite you to the article!

The Credit Information Bureau, is a private institution (to be precise: a joint-stock company), whose owners are primarily banks. Banks established The Credit Information Bureau to exchange information, which on the one hand is a banking secret and on the other is very valuable in the credit assessment of each borrower.

Who goes to The Credit Information Bureau?

Each of us may use a loan or credit from time to time. At least for the purchase of some consumer good (TV, console or exotic vacation). Information on any such credit transaction, if carried out by the bank, is forwarded to the Credit Information Bureau.

After the loan is granted, the banks also report any change in debt service. Whether we repaid the loan installment or not. Whether we used the available credit card limit or not. Have we applied for a loan that is awaiting consideration?

If we incur liabilities as consumers , we get to a part of the collection that collects information about “consumer” debts.

When we run a business, the use of additional financing can be beneficial to our business. So we take a loan “for the company”. Is the same way to The Credit Information Bureau information about these obligations incurred “on the company”?

YES, it’s exactly the same.

If we take out a loan for our business, then our data will go to part of the set with “company” liabilities. So they differ with whom the contract is concluded. If we run a business in the form of a sole proprietorship, then we will be a party to the contract as a natural person running a business.

When we conduct business in the form of a company – the party to the contract will be the company and the company data will be forwarded to The Credit Information Bureau.

And why is such data collected at all?

It turns out that such data (who, when, when and for how long incurs their liabilities and how pays them back in a timely manner) allows to “predict” what the borrower will handle in the future. Will it make payments on time or with delays . They also give you the opportunity to quickly assess and make a credit decision in a few minutes (just like on Fine Bank).

Thus, all companies that are required by law to make a risk assessment before concluding a loan agreement are interested in using this data. Also other financial market participants who borrow money want to have access to this data.

Our daily lives are stressful, and it is becoming increasingly difficult to take the time to rest. Between work, shopping and the education of children, it is sometimes necessary to take care of beaches of well-being and relaxation. But taking care of yourself comes at a cost, and you have to make sure you manage your budget properly.

Take care of yourself without breaking the bank

Far from the madness of everyday life, between public transport, work and maintenance of your house, you have to try to relax. Nothing like recharging your batteries and getting back in top shape, than offering yourself a well-being stay in a relaxation center. But beware: the prices of these balneotherapy or thalassotherapy cures can quickly hurt your finances. A relaxation credit can allow you to offer you a fitness stay with complete peace of mind , while respecting both your well-being … and that of your bank account. This loan will give you the opportunity to benefit from personalized support, a fixed interest rate and a repayment schedule adapted to your means.

Also note that if this treatment has been prescribed by a doctor, part of the costs may be covered by Social Security and your mutual health insurance.

A relaxation credit adapted to your desires

The beneficiary of the relaxation loan can use it freely without having supporting documents to present . It is indeed a personal loan. You can therefore, according to your desires, go for a cure in a health center, but also register for a sports course, or simply take a trip. There are many ways to relax: don’t let money get in the way of your plans!

Relaxation credit: for what amount?

The amount of your relaxation credit will depend on the treatment center you choose , from $ 3,000 to $ 75,000. First of all, be sure to choose the formula that suits your needs: spa treatment, fitness, thalassotherapy, etc. After checking your repayment capacity, find the most suitable loan in just a few clicks using our personal loan comparator .

Trade and credit have been inseparable for thousands of years. Information on first loans is not provided by financiers but … archaeologists. For example, they found credit documentation before our era! The interest rate on the loan, by today’s standards, seems to be quite attractive: less than 4%.

Although credit is such an age-old institution, many of us are strongly against credit refusal. Is it always right? Let’s look at a few reasons why entrepreneurs are giving up credit.

My business is too small to get a loan

If your company has 20-30 thousand dollars of monthly sales and 4-5 thousand profits, then it is probably too small to get a half-million-dollar loan – but do you really need half a million? The credit needs of companies are usually proportional to their scale of business, so small businesses need small loans. If your profits and revenues are stable, then why should you have a problem repaying, for example, USD 50,000 in loans during the year?

However, it is hard to deny that for small entrepreneurs, applying for funding can sometimes be a torment. The problem, however, is usually not the size of the company as such or the creditworthiness, but rather the problems with showing creditworthiness.

Small enterprises or self-employed persons are a very diverse group – it is difficult to assess according to uniform criteria. In addition, they are people who live in eternal misery and are therefore reluctant to excessive formalities. And no wonder: if you are a salesman, purchaser, marketing specialist, and investment manager in one, it’s still hard to find time for papermaking.

This is one of the reasons why micro-entrepreneurs “bounce off the doors” of banks that like diagrams, indicators, strict procedures, and detailed documentation. Micro-entrepreneurs usually don’t have the time – or even the opportunity – to provide banks with the information they need to demonstrate their creditworthiness. And this very often is a real problem.

Fortunately, extensive documentation is not always needed. We would not like to have an intrusive promotion on this blog, but … let’s put it this way: at Good Finance we can assess creditworthiness without any formalities.

Taking out a loan will hurt my company’s reputation

This is a fairly common fear, but is it justified? Indeed, we know the expression “live on credit”, and hearing “borrowing money” can be associated with patching the household budget at the end of the month. However, credit should not be associated with financing whims or a last resort in financial trouble. It can also be – and even should be – a tool for business development.

When thinking about reputation in the context of credit, you should not succumb to stereotypes. Look at it this way: credit in many respects is the same transaction you make with your contractors. If you meet your commitments, your image will strengthen. If you are late in delivery or the goods you sell are of low quality, your reputation suffers.

Similarly with credit: delays in repayment negatively affect your perception of your company. In addition, this applies not only to the current creditor but also to potential future lenders who will learn about it from Credit Checker.

Fortunately, Credit Checker can very well prove your reliability, if only you pay the installments on time.

So what should you do to avoid getting into trouble and your loan is good?

It’s simple: approach the loan the way you approach business. Responsibly. Credit can be a great tool for business development, but – if the commitment is too high and your plans don’t burn out as well as it had assumed too optimistic scenario – it can also become a burden.

Therefore, when taking a loan for the purchase of goods, for example, draw up three sales scenarios: optimistic, neutral and pessimistic. If in the pessimistic variant your income still allows you to repay the loan, it is worth using it.

High loan costs

“Credit is expensive” – ​​we can often hear as a reason for giving up this form of financing. And in many cases it really is. But … this does not necessarily mean that the loan is unprofitable! For an entrepreneur, it is not only the price of the loan that counts but also the income that you can generate thanks to it.

Let’s take a simple example: you have the opportunity to buy a cheap product for 20,000. You know that it is a salable product and an attractive price: you could easily sell it in 2 months, with a profit of purely 20%. However, you only have reserve funds for unexpected expenses. You don’t want to touch them (rightly!), Buying for cash is not an option.

So you go to the bank, where it turns out that the loan is expensive, with a commission of 5%, interest rate per year 10%, additional insurance 0.5% of the amount of credit used monthly and an early repayment fee of 5% in the case of repayment during the first 6 months.

The self-employed are still not welcomed by banks when applying for a loan. But the self-employed can also be very successful and have been in business for years. Independence is often poorly rated in terms of creditworthiness.

Borrowing – important facts

To ensure that borrowing is positive, the self-employed person should do everything to convince the bank. A 12,000 USD loan for the self-employed is just above the small loan. So it should be possible to get a loan with little difficulty. A lot depends on the first impression. Those who can score here will receive a loan of 12,000 USD for the self-employed. But the creditworthiness that is required is not always given. Few know what they have to do as a self-employed person for lending. So information must be obtained before an application is made.

Check creditworthiness

In order not to receive a rejection from the bank, the creditworthiness should be checked yourself. It is not very difficult. Is the applicant in the red every month? If so, the income is insufficient to repay a loan. Has a credit for self-employed persons already been recorded in the Credit bureau? It always depends on whether the entry is negative or positive. The more negative entries there are, the more difficult it will be to get a 12,000 USD loan for the self-employed.

Offers from the Internet – compare and find the right loan

• Loan seekers receive a 12,000 USD loan for self-employed from the Agree bank. This loan is very high on the list with an interest rate of 1.95 percent. The monthly installment of 152.85 USD must be paid every month. The term is 84 months, which corresponds to seven years.
• The barclaycard also has a cheap offer. The interest on the loan for self-employed 12,000 USD is 1.99 percent. This results in a monthly amount for the rate of 153.06 USD.

As a comparison, it can be seen that there are also expensive loans. Interest rates can go up to 6.25 percent.
However, the applicant must keep in mind that he can choose a different term at any time. Both the monthly rate and the interest rate will change.

Creditworthiness is not enough – bad cards at banks

Anyone who has a bad credit rating for the self-employed loan of 12,000 USD has bad cards with banks. This risk group in particular must score with its creditworthiness, otherwise there will quickly be a cancellation for a 12,000 USD loan for the self-employed. The creditworthiness is already rated lower. This is due to independence. This brings a different profit every month.

In this way, an income can never be determined as it is possible for employees. The best thing would be to offer a surety as security for the bank. However, this may not be self-employed, because this way no loan can be taken out for self-employed persons of 12,000 USD. The guarantor signs the loan agreement with the applicant. With this signature he obliges me to pay the installments if there is a loan default.

Take out credit for the business

The 12,000 USD loan for self-employed can be taken up for the business. If it means being able to buy goods. For example, an offer from DLB Bank can be obtained. This grants a loan for self-employed 12,000 USD. But it doesn’t always have to be the best offer. Credit comparison can also help with this.

So this loan for self-employed 12,000 USD can be compared with one from the Internet. The other conditions should also be assessed. This is the only way to calculate the total 12,000 USD for self-employed. Depending on the credit rating, the lender will determine the interest rate. The profit and loss accounts of the past few months must be presented when applying.

Many people who need money urgently need a loan to be paid out in a few hours. However, this project is not always easy to implement, since the house bank in particular often takes several days to make a loan decision. If you want to get a loan in a few hours, you should therefore contact one of the numerous Internet or direct banks and apply for a loan there.

Requirements – applicant’s creditworthiness is insufficient

No bank will lend to a person or family that does not have a certain minimum level of credit. This includes not only an impeccable credit bureau information, but also a secure and steady income. If the applicant’s creditworthiness is insufficient, the bank can insist on a guarantor or a second applicant who meets all of the above requirements and must pay for the loan installments if necessary. The bank can provide further information on this subject on request.

It is usually very difficult for self-employed people, freelancers or other people who do not have a fixed income to get a loan in a few hours. This fact can often prove to be problematic, as it is very common for self-employed and freelancers to find themselves in a financial shortage and unable to pay their urgently needed bills. If this condition lasts longer, this can have serious consequences, which can even endanger one’s own existence.

Application and approval

Those who are well informed and have found a suitable loan can apply not only in a bank branch, but also on the Internet. This approach has a number of advantages. This means that the borrower is not only independent of the bank’s opening hours, but can fill out the loan application at home in peace and without any time pressure.

As soon as the loan application has been completed, it can be sent to the bank, where it is processed immediately. If the credit bureau information is correct and all other requirements are met, the loan can be paid out in a few hours. It happens very quickly when the customer insists on an immediate transfer. Such an immediate transfer is offered by more and more banks and offers the guarantee that the customer receives his money on the same day. However, there are additional fees.

Self-employed people can sing a song about it when it comes to a loan. Most banks receive a rejection from the self-employed. In most cases, a negative Credit bureau is not the problem. Rather, it is the uncertain economic situation that leads to a loan refusal. Nevertheless, there are banks that offer an express credit for the self-employed.

What should the self-employed pay attention to?

A rush credit for the self-employed should be chosen with caution. The banks have different conditions, especially for such loans. Here are some examples of banks that like to lend to the self-employed:

The net amount is freely selectable up to a loan amount of 35,000 USD. The term is up to 84 months. The APR starts at 1.89 percent. However, it must be said that only very few borrowers get this low interest rate.

The loan amount is freely available. A copy of the last three income tax notices must be enclosed with the application. If the credit check is positive, the money will be transferred immediately.

Barclays also offers credit protection specifically designed for the self-employed. The loan can be against

– Defaults on business, death or incapacity to work are secured.
– There is help with a return to employment.

The loan seekers can find out more details on the bank’s website.

Agree bank

Agree bank also issues an express loan for the self-employed. With the appropriate creditworthiness, the loan seeker can expect a loan of up to 35,000 USD. The rates are a maximum of 84 months. Free special repayments are free of charge up to 80 percent of the remaining loan amount. Rate breaks are also possible. For the application, the loan seeker must enclose a business registration or an extract from the commercial register with the application. The last tax assessment is also required.

At Agree bank, the chances of success increase if a second borrower also applies for the loan. A good credit rating must always exist. Without these, the chances of success are very slim. It is also important for the banks that the borrower has additional collateral. An important prerequisite is that this activity has been carried out profitably for at least two years (depending on the bank, three years).

Life insurance policies can be assigned to the bank as collateral. When it comes to a car loan, the bank wants to transfer it by way of security or, in the case of real estate, to enter a land charge. It will be difficult for start-ups who have just started. Here it becomes even more difficult to get a loan approval.

Personal loans

A personal loan can also be helpful. Private investors are in the background. The interest on a loan is its profit, especially since it is higher than with any form of investment. Self-employed and freelancers are welcome. Registration on these portals is free of charge and does not require anything.

In any case, it will not be easy to find an express loan for the self-employed so quickly. The banks mentioned above are only a small part. A credit comparison can be used to find other financial institutions that are happy to lend to self-employed people. A free comparison is definitely worth it.

A credit-free loan without upfront costs is offered by credit intermediaries. However, if you want to rule out any risk of overreaching, you can apply for your loan directly from the lender without credit bureau.

Credit bureau-free credit with no upfront costs – confidence building

The credit brokerage industry shouldn’t have to worry about demand. There have always been people in a credit crunch who need help finding a loan. Depending on the economy and the legal framework for loans, demand has been rising steadily for years. The industry has an image problem. The image can be improved somewhat by advertising “credit bureau-free credit without upfront costs”.

The advertising statement does not offer protection against “black sheep”. A website is quickly programmed. The Internet offers millions of customers in a credit crunch. The credit brokerage profession is not a protected job description, only the 34 C license holder may not have a criminal record. The media regularly uncover new scams by fraudulent credit intermediaries.

Tricks of dubious intermediaries

The temptation to work improperly for credit intermediaries is great. If a credit bureau-free loan is mediated without any upfront costs, the agency commission amounts to around USD 100. Not too big a sum, if you take a closer look at the advertising and work involved.

The preliminary costs or the prepayment are far from the only tricks with which dubious providers earn their money. The business of hoping for a loan is much more lucrative. As part of the announcement that the loan has successfully passed the preliminary check, do good business. In the hope of lending soon, insurance and savings contracts will be concluded. Many prospective creditors conclude these contracts out of “anticipatory” gratitude. The successful preliminary check is assessed as if the loan was already in the account.

The hoped-for loan can be spent appropriately with a “real” credit card, which itself also includes a credit line. The agent always collects a commission for the conclusion of the contract. If he manages to sell life insurance, the savings fund and the credit card, a thousand USD are easily earned. Most still don’t get a loan. A credit bureau-free loan with no upfront costs only earns a serious intermediary about 10 percent of what can be earned through dirty methods.

If you do not want to expose yourself to the risk of fraud, you will bear your preliminary costs yourself and save yourself the placement fee. The real upfront costs for a direct loan application are the postage, the post-ID check and a certification. All together less than 20 USD.

Credit bureau-free credit applied for directly

As far as is known, the Sigma Kreditbank AG from Liechtenstein is behind all serious loan brokerage offers for credit without credit bureau. The bank was newly founded in 2010, since the Federal Administrative Court in 2009 swept practically all credit bureau-free loan offers off the market. A legal international loan without credit bureau comes from this provider, as far as all research shows.

credit bureau-free small loans over USD 3,500 or USD 5,000 can be applied for. The target bank, which is qualified for a credit solution without credit bureau, does not hold the credit bank very much. An activity subject to social insurance is required. The employment relationship must exist for at least 12 months. The self-employed, freelancers or unemployed cannot qualify for the loan. The income from work must not be ceded or attached. The public debt register is also viewed for credit checks. There must be no entry.

If a credit bureau-free loan is applied for directly through an intermediary, but without any upfront costs, a loan of USD 3,500 costs 11.62 percent APR. Proof of this loan amount must be a net income that exceeds the garnishment limit by at least 80 USD. For a single person, USD 1,130 a month in net working income would have to be proven. The credit bank calculates an annual percentage rate of 11.61 percent for a loan of 5,000 USD. The net income to be proven for this credit request is significantly higher. The income must exceed the garnishment limit by 550. A monthly income of at least 1,600 USD is required for a single person.

Repayment – Liechtenstein loan

Both loan options are repaid in 40 equal monthly installments. For 3,500 USD, the installment amount is 105.95 USD, for 5,000 USD loan amount it is 151.35 USD per month.

A note at the end

You have now received all the data necessary to apply for a credit bureau-free loan directly. Of course, it is much more convenient to go through a reputable credit intermediary like bank credit. A credit bureau-free loan with no prepayment of credit is guaranteed to be free of charge if the loan is rejected. If it works with the loan, then the commission was well invested.

Credit history of 24 million individual clients and over a million companies and institutions – such a wealth of data is available to the Credit Information Bureau. Who can the Credit Information Bureau share this data with and for what? Let’s see.

What is and what does the Credit Information Bureau do?

As we can read on the institution’s website , Credit Information Bureau is “the country’s largest collection of data on individual clients and entrepreneurs, including in the area of ​​non-bank loans .” The largest and one of its kind: Credit Information Bureau was created by banks and the Polish Bank Association, based on art. 105 paragraph 4 of the Banking Act.

The Office’s task is to collect information on loans taken out in banks, credit unions and loan companies and to make them available to support the analysis of the creditworthiness of persons and companies applying for a loan or a loan.

Where does this data come from? Just from all of the above entities. Credit Information Bureau is a platform for the exchange of information on borrowers. Banks and credit unions report to Credit Information Bureau all “financial events” related to the loan, in particular its taking, repayment of subsequent installments or … no repayments. Loan companies do not have this obligation: not every loan “lands” in the Credit Information Bureau.

Who can have access to data in the Credit Information Bureau?

Several groups of companies and institutions have access to data about you – or about your company – collected in the Credit Information Bureau. The first of these are those that grant loans themselves (or provide similar services), so:

• banks (commercial and cooperative),
• Jumping,
• loan companies,
• leasing and factoring companies related to banks.

Banks can ask the Credit Information Bureau for information about you without asking for your opinion when you want to take advantage of their offer. It is different in the case of loan companies: they can “reach” your credit history at other loan companies without asking you for permission, but they need permission to access information on your liabilities to banks.

Also leasing and factoring companies associated with banks always need your consent to get acquainted with your history accumulated in the Credit Information Bureau. If you give it, they can reach for it directly to the Credit Information Bureau.

Who else?

It is different in the case of the second group of entities, which include, for example, leasing and factoring companies that are not associated with any bank. These can also take advantage of the rich information about you in the Credit Information Bureau, but only through BIGs, i.e. Economic Information Bureaus. And specifically one BIG: BIG InfoMonitor, that is a daughter company … Credit Information Bureau.

It is worth noting that the Credit Information Bureau and BIGi are different institutions. Credit Information Bureau collects data on loans and advances granted by financial institutions, while BIGi – on liabilities towards companies from any sectors of the economy. Probably the most well-known aspect of BIG’s business is keeping registers of debtors. They contain information about those individuals and companies from which creditors did not receive payment on time.