If you have been unreliable, you no longer deserve trust, at least for a certain period of time: this is the reasoning behind the creation, by the banks, of a list in which all those who have had access to private credit are registered. You must know that every time you go to the bank to ask for a mortgage, a loan, or a loan, the credit institution accesses a database to check if you are in compliance with the previous debts you have contracted with other banks or financial institutions. If you are not, your request will hardly be satisfied. With this article we will deal precisely with this issue, that is, financing for bad payers.
To address this particular problem we will initially need to understand when one becomes a bad payer and what credit information systems consist of. Subsequently, we will have to deal with the deletion from the list of bad payers and if there is a possibility for them to access credit from banks and financial institutions. If the topic interests you, continue reading: we will see if it is possible to finance bad payers and how.
Who are the bad payers?
The bad payers are those who, in repaying a loan obtained from a credit institution, have proved to be not entirely reliable.
Therefore, bad payers are those who have not paid off their debt with the banks, or who have done so late. To be precise, the delay in the payment of two installments of the loan or mortgage is sufficient to be registered as bad payers.
Bad payers list: what is it?
Bad payers are registered in a special list: in reality, it is a large database, which can be consulted by all credit institutions (banks, post offices, etc.) and by financial intermediaries.
These credit information systems report not only the names of those who have proved unreliable but of all the people who have requested any type of loan: therefore, by consulting the list you will also find the names of those who are perfectly in Rule.
Credit information systems: what are they for?
Credit information systems are used by banks to check the “curriculum” of those who request money: it is, in fact, clear that credit institutions will tend not to trust customers who have defaulted in the past, while they will have no problems with those who paid on time.
Consultation of credit information systems also serves to verify the debt exposure of the applicant: it is possible that the person who goes to the bank to apply for a loan is up to date with payments, but already has several mortgages and loans on his shoulders. Even in this hypothesis, the bank will tend not to trust.
Deletion from the list of bad payers
Fortunately, you are not a bad payer for life, even if you have never paid off your debt with the bank.
Negative information, i.e. information regarding non -fulfillment, remains recorded for the following terms:
- one month for the loan request rejected by the institution or abandoned by the customer;
- up to 6 months for the loan request pending the preliminary outcome;
- 12 months for arrears then settled by two installments or two months, from the date of regularization;
- 24 months for major arrears then remedied, again from the date of regularization
- 36 months for arrears or other serious non-fulfillment not remedied: from the expiry date of the contract or the last update in the case of agreements or other events related to the reimbursement
- 36 months for regular credit relationships, if other relationships with non-regularized negative events appear in the history of the subject.
Once the maximum information retention terms have expired, the credit information systems are obliged to automatically delete the data.
Positive information, that is, those concerning requests, disbursements, and regular payments of loans, can be kept for 36 months from the date of the end of the credit relationship or the expiration of the contract.
Loans to bad payers: are they possible?
Is it possible that a credit institution decides to finance a bad payer? Yes, it is; with the clarifications that we will say.
The bad payer who asks for a loan is a bit like the story of the frog and the scorpion: they cannot be trusted at all, despite the initial good faith. This is why banks are very cautious with loans to bad payers.
Nevertheless, it cannot be said that the doors to financing are completely closed: it is possible that those who have not always been reliable in the past will be granted a small loan.
In other words, bad payer financing is possible, as long as it consists of a rather limited amount. In this way, the bank protects itself in the event of default by the debtor.
Mortgages and loans are also possible if they are secured by a mortgage: in such a case, the bank takes precautions by asking the debtor to establish a real guarantee on its property, so as to be able to claim against it in the event of default.
Then there is another way that allows the bad payer to access a loan: the assignment of the fifth. Let’s see what it is.
Bad payers: loan with the assignment of the fifth
The assignment of the fifth is a loan reserved for public and private employees and retirees. It is so defined because the monthly installment is deducted directly from the monthly salary up to 1/5 of the total amount of the paycheck, i.e. 20% of the salary assessed net of withholding taxes.
The amount of a sale can increase up to 2/5 of the salary in the case of the so-called “double fifth”: with the double fifth, it is possible to commit up to 40% of one’s salary.
Since the loan is guaranteed by the paycheck, the granting of the same does not depend on any past credit problems of the applicant since, by virtue of the sale, it is the employer himself and not the applicant who pays the repayment. In fact, it is up to the employer to physically pay the installment to the creditor, withholding the amount directly from the employee’s paycheck.
It is also possible for pensioners to access the fifth assignment, but for the latter, the maturity of the loan cannot exceed 90 years of age, the duration of the loan cannot, in any case, exceed ten years, and insurance coverage is mandatory. for the risk of premature death of the applicant.
Therefore, the bad payer who is a permanent employee or a pensioner will still be able to access the loan through the mechanism of the assignment of the fifth.