When you hear the term credit bureau, maybe you think of delinquent or bullet-proof people, who were denied credit, but this is not the case. According to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), the credit bureau is a private company, which receives information from those who grant credit cards and loans; to transform that information into credit histories, the foregoing with the purpose of managing the risk of the credit grantors themselves. And it’s not always bad to appear on the list. Keep reading.
Is it bad to be in the credit bureau?
The credit bureau is not good or bad, it only shows our credit behavior of the last 6 years and serves as a reference to institutions. Because of the last 6 years? Because after this period the credit bureau records are deleted.
In general, banks, financial companies, department stores and other commercial companies in (such as Coppen, Telcom, Telnets) have agreements with credit bureaus, so if you have had a credit with any of them, your name appears in the list and that is not necessarily bad, but a simple report.
The negative is that you appear in the report as a bad payer, that does not depend on the lenders, but how timely and responsible you have been to meet your payments.
How to really know your credit history?
In Mexico there are 2 entities that evaluate the credit history of Mexicans, the credit bureau and the credit circle, both collect information about the payment behavior of users, both credit cards and loans and other credits in general. These institutions provide a free report per year for users who want to know their score or status.
Not all debts are reported in credit bureau
Some examples of loans that do not go to credit bureaus are:
- A loan granted directly in your work, the credit behavior of that loan does not go to credit bureau, since it is probable that your work does not work as a credit institution with agreement in the credit bureau.
- Loan in a pawnshop, this loan will not go to the credit bureau history because it is not a loan from a credit institution, the pledge loans are handled differently.
- Loans with relatives: Individuals do not have agreements with the credit bureau, so in no way this would be reflected in your credit bureau history.
In general, if a debt is acquired with an institution that is not in agreement with the credit bureau, this debt will not be reported.
Take care of your credit history
The credit bureau is a private information institution, it does not deny or authorize loans, it is important to keep us informed about the behavior of our credit bureau as well as to know what debts are reflected and what are not.
It is advisable to review our credit bureau from time to time, once a year you can consult a free report that reflects your credit behavior, this is important to make clarifications in case you find a credit behavior.