A bad credit history due to applying for loans from microfinance organizations is formed in three cases:
The borrower submitted too many applications within a short period of time.
He was late with payments and failed to fulfill his obligations to creditors.
An employee of a microfinance organization made a mistake that subsequently had a negative impact on the client’s credit history.
The first two situations are the borrower's responsibility. If anhui mobile number database you want to maintain a high credit rating, take your obligations to the MFI seriously: submit applications thoughtfully, make payments on time.
However, periodically make sure that the data transferred to the BKI is correct. You can check your credit history for free - use this opportunity to make sure that there are no delays in timely repaid loans. Unfortunately, even contacting reputable organizations does not exclude errors.
What happens if you default on microloans?
Everything is the same as, for example, with late payment of consumer loans. Your credit history will suffer the most - the data on the delay will be sent to the BKI.
In case of prolonged non-fulfillment of loan repayment obligations, other negative consequences are possible:
calls from collectors;
the creditor's appeal to the court;
forced debt collection by bailiffs.
It may come to the point that due to overdue loan repayment and subsequent enforcement proceedings based on a court decision, your property may be seized and travel abroad may be prohibited.
What do late payments on microloans ultimately lead to?
Essentially, to a worsening of the credit history and to negative consequences associated with forced debt collection. And here a "domino effect" can be observed:
you submit new applications for loans and credits;
banks and microfinance organizations refuse due to open enforcement proceedings;
credit history gets even worse.
As a result, many financial products may become unavailable to you. Including mortgages or loans for starting a business. A potential employer may also be interested in your credit history, and the fact of having overdue payments may become a real reason for refusing to hire you.
How to correct CI after applying to MFO
If a credit history check reveals errors made when entering data by employees of a microfinance organization, then you should contact them with a request to make adjustments. Then request the report again and make sure that the information is now reliable.
But if you yourself have allowed delays, then you can improve your CI only by obtaining and timely payment of new loans. Try to take a small loan and make payments gradually. As soon as the data starts to get into the BCI, your rating will start to grow.