How does your credit history affect you?

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Credit history

Credit history plays a crucial role in the life of almost all Spaniards. One cannot imagine life without a mortgage or wedding, as well as other things that are often unplanned.

However, it is extremely important to read a lot of information about the lenders. Before this it is armed previously. Today, there are many scammers who abuse other people's data. They can use this information for different illegal money operations, commonly obtaining credit in someone's name. For this reason, the people of Spain must know as much as possible about this situation to protect themselves. A periodic check of the credit history can help to know the state of the credit and to see all the operations carried out with your personal information.

What is credit history?

The definition of credit history is a detailed dossier per person about their activity and good faith in terms of repayment of loans of any kind. This information is stored and can be found at credit bureaus. These organizations meticulously collect data on all of the individual's available debt obligations. That is, the number of loans, their timely repayment or, conversely, late payments are present there.

With the help of this report, financial institutions, be it a bank or online lenders, assess whether it is worth lending money to someone or not. In addition, each Spanish citizen has a credit rating. It is believed that the higher the points, the more responsible and disciplined you are in terms of repaying borrowed money. In turn, these people obtain excellent loan conditions.

The main advantage of a good to excellent credit history is that it allows people to receive the requested money in the most favorable conditions. That is, the amount and term of the loan increase exponentially with a good credit rating, but the interest rate, on the contrary, falls.

How does the credit history work?

Positive credit history is extremely important for those who are going to obtain long-term loans, such as car loans or mortgages in the future.

A good credit history is directly proportional to high credit scores, which provide access to the best interest rates and large loan amounts. This is why having a bad credit history is so unpleasant.

The credit history of Spain is a kind of business card for a responsible and disciplined person who manages his finances well and keeps everything under control. This can play into hands when applying for a new job. Now, employers have started to pay attention to this factor when deciding on potential employment.

How to know my credit history Spain

There are several credit bureaus in Spain for those who think how can I see my credit history. Are here:

  1. credit association (National Association of Financing Organizations) and EXPERIAN are responsible for people's data.
  2. As for the data of legal persons, the Registry of Unpaid Acceptances (RAI) is dedicated to them.
  3. Banks have CIRBE (Bank of Spain). Here are the organized credit histories of this sector.

If you are applying for a loan and you want to know your financial profile, the easiest way to request the history of your credit agency is through the Risk Information Center (CIR) of the Bank of Spain. CIR is a government service that manages a database that includes almost all the loans, guarantees and risks in general that financial institutions have with their clients. Even if your credit history is bad, it is not the reason to get angry. There are lenders who work specifically with these types of clients to provide them with bad credit history loans.

What if my credit history is bad?

It is very important that each Spaniard has a good credit history since different financial companies use this tool to analyze the borrower's profile. On this basis, they decide to give a person loans with bad credit history or not. In addition, the positivity of the credit history of Spain influences exactly the conditions that the applicant will receive for the requested loan, namely the loan amount and the interest rate.

How to clear your credit history

To correct a credit history, you must first study it carefully. A person can check the credit history on the official website of the credit bureau. Be aware that it may take some time to improve your credit history at the Credit Bureau.

Here are some tips to improve your credit history:

  • Pay off an active past-due loan as soon as possible. If there is currently an outstanding loan for which a borrower is past due, you should try to close it immediately.
  • Pay off all active loans in good faith. This applies to credit cards and mini personal loans of any kind. This information may also be available to financial institutions and can help obtain loan approval.
  • Use the restructuring service. A person can correct credit history with a bank or credit institution by issuing a debt restructuring, which involves the ability to repay the debt in installments over a specified period of time.

CreditVictoria knows what to do

How to erase the credit history? Nothing is removed from the credit history and all the "past sins" remain there, although there are two big "buts" here. First, depending on the quantity and the statute of limitations, the information is out of date and canceled. Second, the credit bureau can improve your credit history and therefore your score. One has the right to take very small loans and pay them carefully. One can apply for Casting Credit to regain a good credit history. How? A person can take out a loan and pay it back on time, this will help improve credit scores.

Therefore, for a couple of years (and financial institutions are especially studying credit activity in the last 2-3 years), a person will create a new round of relationships with creditors, a good one. It is important that a person does not forget to pay their utility bills with the same care and on time. Most likely, after such "wellness procedures" and subsequent credit score check, the borrower will be considered among the trustworthy customers.

about the author

Maria Solis Burley

Credit consultant in Spain. Financial Analyst at Crédito Victoria.
LAST UPDATED: February 4, 2020