Many SME entrepreneurs are more or less worried about being on the “credit bureau” or being “blacklisted”. And of course, businesses often have fluctuations, ups and downs. Sometimes the money isn’t available in time to pay off credit card debt. Or sometimes the money may come in slowly. Therefore causing many people to become addicted to the credit bureau. But all this Being stuck with a credit bureau and being blacklisted are different. Today, AIRA will take all entrepreneurs to understand that What is a credit bureau? How many years of credit bureau? What do credit bureaus check? And how is it different from being blacklisted? Including telling you how to fix bad credit and make it good again.
What is a credit bureau?
Credit Bureau or National Credit Bureau Company Limited (National Credit Bureau) is an institution that acts as a center for storing credit account information and payment history for all types of loans of natural persons and juristic persons. which are sent from financial institutions and companies that are members of credit bureaus which we call “Credit Information”: Individuals can check their financial health by submitting a request for a credit check through the credit bureau. Mobile Application or various service channels such as credit bureau checking centers Bank counters / online banks / ATMs or postal service counters that provide services, etc. can be inspected every year. It’s like an annual health check. In case you find anything unusual, it can be fixed in time.
In general, the credit bureau will show credit history for the past 3 years. In the case of closing all debts. I haven’t used the credit. The credit history report in the credit bureaus will gradually retract, month by month, until after 36 months or 3 years, the report will no longer be seen. Or in the case where the customer has defaulted on repayment and has been overdue for more than 90 days, currently it is required that financial institutions will send outstanding loan information to credit information companies continuously for not more than 5 years from the date the overdue amount is over 90 days. years, it is not that the report will disappear immediately. It will go back to the same situation as when we closed all our debts. The history will gradually move away. It will take another 3 years to completely retreat from the report. For some people, some debts have gone bad for 3 years and they can get new loans. Don’t forget that our history of credit usage is not limited to the credit bureau only. But financial institutions or financial service providers still store information. How long will it last? 10 years, 20 years or longer depends on the criteria of each institution. Which can affect future credit applications.
What is a blacklist?
Blacklist is often a catchphrase that people often use to refer to undisciplined payment behavior. Until I’m in bad debt. Many people often misunderstand that this word comes from the credit bureau. Let me emphasize clearly here again that the credit bureau is responsible for storing, collecting and processing credit information of financial institution customers as specified by the financial institution or company. It is provided by members only. I don’t have duties. “Blacklisted” or Blacklist as many people understand.
We manage bad credit, incorrect payments, financial institutions. Or the financial service provider simply sends actual transactions for a specified period of time. The results of our actions will be reflected when we apply for a loan. or credit card and did not receive approval The criteria for consideration here will be as intense as each institution will determine.
Applying for a loan and getting approved Usually there is a due date for the payment. In the case where we have delayed payment of installments There will be debt collection, which will incur additional costs. We will give an example of a personal loan for you to see. If we pay the debt late What will happen? What expenses will there be?
Examples of defaulting or delaying payment of debt What expenses will there be?
Debt collection costs For personal loans with outstanding balance or accumulated overdue payments of 1,000 baht or more, the bank will charge 50 baht for the first time and 100 baht each time.
Interest penalty in case of late payment The bill will be calculated from the date the payment is due. By adding an additional 1% – 3% depending on the overdue period.
Now, entrepreneurs You should understand the meaning of the credit bureau. And being on the blacklist has been brief enough. And if we are one of the people who are experiencing this problem, don’t worry at all. Because there is a solution and make a bad financial history good again. You can also apply for new loans.
Don’t want to lose credit What can I do?
For people who still have good financial liquidity
If we are still able to pay off debt while still having money left to spend. Things that can be done are as follows.
Summary of debts that still have outstanding items, for example, with which financial institutions are they owed? And in what amount? There are details of interest and how much must be paid per installment. In order to be able to set a budget to calculate income and expenses appropriately.
Payment plan Try calculating which debt you think you can get rid of the quickest. This will increase your payment amount each installment so that that debt will be paid off as quickly as possible. And especially if any debt has compound interest, you should hurry to close the debt as soon as possible.
Try to pay off debt on time every installment. Because it will affect the approval of new loans in the future.
Use a lump sum to pay off debt, for example when you get a bonus. or commission money or other extra money after dividing the savings Don’t forget to allocate some of it to cover existing debt. Reduce debt and pay off debt quickly.
Refinance or use debt balance transfer services It’s another option. That will help reduce the burden of expenses. Save on interest and enhance our financial liquidity.
Don’t take on more debt. Try not to add more debt to yourself. Because right now it is very important to focus on paying off all debt first.
In the case where the business operator is a seller of goods or services Have business partners who are government agencies or large private companies? and immediately need cash flow to enhance liquidity within the business I don’t want to wait until the commercial credit term is over. Such documents can be used to use the Factoring service (selling trade receivables) with AIRA up to 90% of the document value, quick approval, quick cash receipt.
