A good personal credit history informs the bank and other financial services providers about a prospective client’s ability to manage money and their financial literacy. All overdue payments are on the person’s history for ten years, and unintentional negligence costs a lot – banks and other institutions offer much more expensive loans or do not offer them at all.
Every time a client wants to take out a loan for a business, individual business or starting a business, the financial services provider evaluates his or her personal credit history. Our company, Good Finance LOANS provides loans for business with a bad credit history. This is one of the key points where we stand out from the banks.
A person’s credit history begins to enter when a person reaches the age of majority. It is for everyone in the country, whether we like it or not. This credit history includes information such as financial obligations, loans received, loans repaid, miscellaneous payments, overdue payments, and other information. Interestingly, a person’s credit history accumulates both bad facts and good ones.
The bank often refuses to lend
A client with a good credit history can expect better terms and lower interest when looking for a loan. However, banks often do not rely solely on credit history and ask for real estate collateral that should be pledged in their favor. In such a case, a resident wants to borrow from other credit institutions in order to avoid unnecessary waste of time, paperwork, going to a notary and all related costs.
The Bank has repeatedly stated that it values its customers very strictly and pays close attention to debtors. Those who are late, but are likely to be late in paying their premiums, immediately close their doors. Banks are predicting whether the customer will be able to make payments and thereby increase their profits, and in the event of a delay, immediately sell the mortgaged property. Banks also do not assess each customer individually whether one or the other person would qualify for a loan. They usually do not even talk if the person does not have proper security.
Higher interest rates for individuals with bad credit history
Banks stress that they are cautious about the timeliness and repayment of fast credits. Using instant credit alone increases interest and worsens loan terms. They believe that if a person takes advantage of instant credit, he or she may not pay the agreed interest. Good Finance LOANS also do not encourage you to use instant credit but rather look for other alternatives or just contact us.
People are not interested in their personal credit history
According to public data, only about 4 percent of the population in Lithuania is interested in their personal credit history. Meanwhile, in the United States – as much as about 45 percent. We encourage you to take a look at your credit history at least once a year and see what data is collected about you. Not only loans, but also possible misunderstandings in the future, need to look into these details. Because sometimes we pay too much or a few cents too much for our services and goods. Your credit history could see such charges and correct them, if they are still in effect.
Do not bother applying to banks
If you apply for a bank loan at least once and do not get a positive answer, do not bother and do not contact them again as the answer is likely to be the same. We invite you to fill out an application with us, where you can save not only a lot of time but also money.