Whether it’s an open invoice that ended up at a debt collection agency or other financial difficulties. Most of the time it is faster than you think – you are in school, and the big financial difficulties are not easy to solve. Then it is not very easy to apply for a loan without Credit Bureau. But is a loan possible despite debt collection and if so, how?
Both variants are rather difficult. Debts always leave traces in Credit Bureau that are visible to credit institutions and other companies.
However, the following facts should be remembered:
- not every collection letter is immediately entered in the Credit Bureau
- a legitimate claim will then no longer be deferred
- current loans despite debt collection should be compared immediately
- Installment loan and claim settlement should be considered carefully
When exactly do companies turn on a debt collection agency?
It always takes a while for debt collection to turn on. A lot must have happened in advance and the actual invoice is guaranteed to be overdue for some time. In addition, an assignment is always associated with costs that the guilty party must now also pay.
If the debtor does not pay, the creditors remain, that is, the applicant always sits on the collection costs. However, some payment reminders and reminders to the creditor go out in advance.
However, the larger companies and companies are usually much faster and therefore turn on a collection agency after only a few weeks. Small companies or private companies may take a while to take this step.
What happens to the Credit Bureau?
The debt collection agency makes a negative entry in the Credit Bureau. Each entry immediately affects the creditworthiness of the debtor and can have an enormous impact on everyday life. With a negative Credit Bureau entry, a loan without Credit Bureau is the last resort. You are guaranteed not to get a loan from the house bank. Most of the time, lenders need additional collateral that the creditor has to provide.
However, it is very difficult to get a loan without Credit Bureau. A loan despite collection is easier. This is mainly due to the fact that not all collection letters are entered into Credit Bureau immediately. However, the institutes often only grant loans without Credit Bureau in small amounts up to a certain maximum amount. Car financing or real estate financing is therefore normally not possible. Only when the Credit Bureau entries have been deleted can other financing options be considered.