Tips for Clear Name – How to Get Credit Approved
December 12, 2019
Bills arrive, money runs out, debts accumulate and without being able to pay them, you see your name in protest bodies. Yeah, a lot of people go through this, and getting a new credit gets complicated! So we bring special tips for you to try to clear the name and get back in the blue! Debts lead to negativity. With the name restricted, banks make it difficult to approve a financial product, such as a loan and a credit card, for example.
Since the financial institution believes that those who are in this situation can not pay their debts, it is normal for applications to be denied, reducing the chance of “default” to the bank. At this time you need to be calm and not go around looking for miracles. Many people end up getting even more tangled up by borrowing at huge interest rates or believing in malicious people who promise to clean up the name. Sometimes it may take a while to have a solution. However, there is no magic formula. But, we’ve brought you some tips that can help you over time and get you out of debt. Let’s meet?
Why do people get negative?
Debts “dirty” the name. That is, if you make purchases in stores or spend on the card and can not pay, your name will end up in credit protection agencies, this is what negative the customer, understand: As soon as you do not pay a debt, the store or company, submit your name for protest. These organs, such as Ferasa, SPC, SCPC, etc. They are consulted every time someone asks for credit.
And if there are any open accounts, this hinders their “credibility” with banks, also known as a CPF restriction. That’s why it’s so important to clear the name!
What’s the matter of having a dirty name?
The first consequence of having your name restricted is the granting of credit. When you need a card, loan or other financial product, you may not be able to provide a service as you expected.
It may also happen that you can not make installment purchases or even buy electros in the credit.
In short, your financial life can get very complicated, without getting credit with banks and financials and when you can, interest can be very high!
What is credit analysis?
As you may have seen, every time the customer asks for credit at the bank, whether it’s a card or even a loan, an analysis is made of him as a consumer.
This assessment aims to know if the person can afford a new debt and pay the installments or the invoice. Analysis involves several tools, and may vary from bank to bank, see:
Most common credit analysis tools:
- Documentation: This first step makes sure about the person applying for the credit and if it’s not someone pretending to be another. Proof of address and income are also analyzed to find the best product.
- Relationship history: It is a common practice to evaluate your relationship with the institution. If you have already asked for credit with her, if you paid and how you paid, for example.
- Protection Bodies: Ferasa, SPC, among others, are companies that banks seek to know about the life of the person as a consumer. That is, if she pays the bills on time, has outstanding debts, etc.
- Score: The score generated by credit protection agencies is a type of “score” for each customer. This assessment measures whether the person has low, medium or high chances of repaying their debts.
- Product Review: Try to order a product that matches your profile. A credit card that requires a higher income or a loan that does not cover your earnings may be declined.
How does my score work?
This tool measures a person’s confidence in payment based on a group of people with a profile equal to yours. Understand: The score goes from 0 to 1000, and the closer to one thousand, the better! Open accounts, old debts, and “dirty” financial history can bring down your score. But there are some tips to see your score go up again:
What to do for the score to rise?
If it is difficult to pass a financial product because your score is low but you are not negative, any of these options may help you:
1. Pay bills on time!
Avoid delaying payment of bills. Keeping an eye on the maturity of your invoices and slips is critical. When you are late, your track record gets dirty and getting credit gets complicated.
Always pay on time or even in advance, it’s worth it! This is credited to your behavior as a consumer (open a Positive Account).
2. Have accounts in your name
You may not be negative, but you still can’t get a credit card or loan. This may be due to missing accounts in your name and thus not being recognized as a consumer.
So when banks analyze you financially, they don’t find relevant information about you. Not even the score itself can be generated for lack of information.
Bank accounts, simple bills like phone, water and light, can help to compose your score. This helps you to be recognized as a good consumer if you pay on time.
3. Update your data
It is important to always update your data, both at credit institutions and credit protection agencies. If you are not registered on these sites, you can sign up for free and update your information.
This task ensures that you have information as a consumer and institutions recognize you at the time of analysis.
4. Beware of credit request frequency
Some habits can take your score down, such as asking for multiple credit cards, loans, or limit increases at the same time.
This action of lowering your score is a protection to yourself. The systems understand that it can be a malicious person using your social security number to apply for credit. And to avoid this, your score is lowered so that banks / institutions do not release credit.
Your score may be low for some time, and if a credit application is disapproved, you should wait about 6 months to try to make a new proposal.
5. Negotiate Debts
If you have open accounts, you can try negotiating them with the lender. Searching for who you owe to negotiate is the beginning to increase your score. You can get favorable terms, such as lower interest and installments that you can pay.
6. Positive Registration
Registration can be done at banks you have a relationship with. Or through the website of credit protection agencies such as Ferasa, SCPC Boa Vista and SPC for free.
As soon as you pay a bill, this information goes into this “database” and can be accessed by banks or lenders at the time of credit analysis. Some of these accounts that enter the Positive Account are:
- Generally Paid Accounts
- Card purchases
This information from your paid bills helps your score increase. If you are a good payer but do not have accounts in your name, there is not enough information to assign a score.
Or if you already have a good score, Cabastro Positivo helps you keep your score and improves your chances of credit approval , as banks have access to information that you pay your bills on time.
How to clear the name?
If you want to get approved again, the first thing is to clear the name. Unfortunately, there is no other way but to pay what you owe! Some tips can make this process easier, see:
Before looking for a loan or other way to pay off your debts, look for who you owe. Negotiating can be the best way, as your debt can be alleviated by taking interest, penalties and maybe back to original value. Try to negotiate the installments so that you can pay more smoothly.
- Pay in cash
By paying in cash, your debt decreases well, getting advantages this way. By being able to raise money and trade in cash, you get rid of late bills and clear your name.
Interest on late accounts can be very high. While the personal loan or payroll loan are smaller and can save you at that time.
You pay the debt “at once” and can clear the name. Staying committed to keeping loan installments up to date.
Personal loan can be tricky to get as the name is “dirty”. You can try the payroll, the one that deducts the amount of the installment directly from your salary or even a loan for negative.
This last option has higher interest rates, so it is very important to research well before closing deal.
After paying, how soon is my name cleared?
Once their bills are fully paid and nothing is left open, companies have up to 5 business days to remove their name from protest bodies. No more days can be added, and remember to get the receipt.
This proof will be required if your name is not withdrawn within the specified time, which can be claimed at the company. And if it still persists, the customer can get help from Procon.
Does debt “expire”?
Yes, the debt prescribes after 5 years. But even so, it can get in the way of getting credit or buying from the institution you owe it to.
Our tip is to avoid thinking in this way. Five years with this open account can be very damaging to your life. With a little effort and planning, you can get organized and be comfortable with the bills.
Ready to clear the name?
We hope that the tips for clearing the name have been helpful to you. If you are thinking of paying off your debts or are already in the process, tell us in the comments! I’ll wait for you next time.