Anyone who has ever had financial difficulties knows that they can very quickly be reflected in the credit bureau as a negative entry. And then removing this negative entry is not so easy. Because it burdens everyday life immensely and is only deleted again when the debt has been paid off and a period of at least two years has passed. However, after paying off the debt.
Loan to be required during this time
As a person affected you have to have a lot of staying power if you want to be creditworthy again. It is not uncommon for a loan to be required during this time to make important investments. Since credit bureau is still negatively impacted, it is not so easy to find a loan with credit bureau done. Banks often do not recognize that the debt has already been repaid and only see the negative credit bureau, so the person concerned must ensure that credit bureau is cleared or the bank learns that all debts are a thing of the past.
How to clean up the credit bureau
With a loan with credit bureau done, it is important that the bank can recognize that there are no longer any debts. Many creditors forget to send a message to the credit bureau saying that all debts have been paid off. Of course, this delays the delivery of the negative credit bureau entry, which ultimately means that the debtor does not become neither creditworthy.
As a borrower, you should therefore query the credit bureau in advance and look closely at the entries that are available. This is particularly important when the negative entries are known and a loan with a completed credit bureau is urgently needed. You can query your own credit bureau once a year free of charge.
The query shows which entries are available. If there are any that are not authorized, then they must be deleted. This works by writing to the old creditors and asking for deletion. If they do not comply with the request, the credit bureau can also be contacted. However, it is important that you can also prove that the debt has been settled. Otherwise the credit bureau will not consent to deletion.
Convince the bank
If you play directly with open cards when borrowing, you have the best chance of getting a loan. In this way, the bank can be shown that all debts belong to the past and that a decent and financially secure life is now being led. It is important that this is done before taking out a loan with credit bureau done. Because once the bank has queried credit bureau and discovered the negative entries, the judgment on the loan is quickly made. And this will not be what the borrower hopes for. However, if you point this out from the start and provide sufficient collateral, you will also get the desired loan.