The credit company is the protection association for general credit protection. The credit company is one of many credit bureaus in Germany. The credit company often plays an important and decisive role in the lending business. This is where data on customers and borrowers is stored, which can and should help banks and lenders make a loan decision.
Companies can and want to find out about the creditworthiness of their future contractual partner. So it is usually the case with credit contracts that lenders if the customer has agreed, give an insight into their credit company. Not everyone should be able to see this information, because the principle of reciprocity applies here. Only those who pass on information can also use information. The credit company lists both positive and negative characteristics of customers.
Positive characteristics in the credit company are by no means bad here. These are possible entries such as credits or loans but are properly and regularly serviced. On the other hand, the negative features can have an enormous impact on the lives of those affected and can sometimes have dire consequences.
What are negative loan company entries
Negative characteristics mean transactions in which payment difficulties arose and commitments entered into were not or have not been properly returned. However, not every lender or lender may arbitrarily make negative Credit Bureau entries. There are certain rules and deadlines to be followed here. The basic prerequisite for this is two reminders.
Furthermore, there must be at least four weeks between receipt of the first reminder and the actual entry. If these two things are fulfilled and the borrower has not responded, paid or lodged an objection, the lender can initiate a negative credit company entry. In addition to such dunning procedures, garnishments, dunning notices, arrest warrants, and sworn-in state insurance are also common negative Credit Bureau entries.
However, sometimes claims are unjustified. If a dunning procedure occurs despite an unsubstantiated claim and the customer does not contradict, a negative credit company entry can also result here. This is then permanent, at least until the matter has been resolved.
How do negative loan company entries affect everyday life?
If you have negative entries in your credit company, your life can be significantly affected. It is usually very difficult for such people to get another loan or loan. Other everyday things such as cell phone contracts or rental contracts can then be difficult under certain circumstances. Because here, too, business partners use credit company to get an overview of the financial situation of their counterpart.
Here it can happen that business relationships and contracts are rejected due to negative credit company entries. The negative features do not necessarily speak for the customer and often give a bad picture. Because of the fear of being able to sit on the demands, contracts do not come about.
Therefore, the variant of loans without credit companies is becoming increasingly popular. These are loans that are granted even without the involvement of the credit company. Here people who have a “negative credit company” have a chance to get a loan.
More and more providers are offering customers such contracts, but mostly on the basis of higher interest rates or conditions in order to be able to absorb the higher risk. It is best to use companies that we have checked, such as a private lender, credit company or national bank, for your loan request.
What is the content of a negative credit company entry?
In addition to personal data such as name, date of birth and address, a negative Credit Bureau entry will also save all relevant data on the actual case. What is the claim, what is the delay or what is non-compliance with the proper return, what other enforcement measures may be related to this?
The deletion of the negative entries
If there is a negative credit company entry, then lenders and other companies can view them, provided the customer agrees. It can then be difficult for the customer to conclude appropriate contracts. In this case, loans are usually only possible without the involvement of the credit company, as long as the entry exists.
As a rule, such negative entries are stored for 3 years from the moment of entry. The three years end at the end of the third following year. Only then are the negative features usually deleted again. So long such entries can have a significant impact on the life of the customer. The customer also has the option of requesting the deletion of the negative entries before this time has expired.
He can do this if he has managed to clean up the relevant issues. If open claims and dunning procedures have been dealt with or unjustified claims have been eliminated, the negative entries are no longer valid. The customer then has the right to request deletion on his own initiative. The customer can contact the credit company directly for this. Of course, it must then also be proven here that the matter is really settled.
Corresponding documents must then be submitted with the request to delete the negative entries. As a rule, such entries can then be completed and deleted. However, if you do not become self-employed here, your entries will remain in the credit company for the legally regulated periods.