Today, we will discuss a topic that is very close to us, yet often misunderstood: the Credit Bureau. Many people believe that their applications for credit cards or loans are denied due to being blacklisted by the Credit Bureau, which leads to repeated failures in getting approved. Today, MoneyGuru.co.th will provide details on this matter to help clarify these misconceptions about the Credit Bureau and to promote a better understanding of its benefits.

Blacklist here refers to individuals with poor financial transaction histories and lack of credibility, such as failing to repay borrowed money or making late payments.

Is the Credit Bureau a Blacklist?

- The Credit Bureau is not a blacklist. In fact, the Credit Bureau, or Credit Information Company, simply records our financial transaction data related to member financial institutions and compiles it into a comprehensive credit report for us (the data owner).

- When we (the data owners) or financial institutions wish to access this report, it can only be done within the legal framework. The Credit Information Company can only disclose information and reports under these regulations.

What is Considered in the Credit Bureau?

Factors Considered:

Payment history

Timely and full payments

Debt-to-income ratio

Should not exceed 30%

Length of credit history

The longer, the better

Applications for new credit

Avoid applying for credit cards or loans too frequently

Factors Not Considered:

Income only affects the financial products we can apply for. Even with a high income, a poor repayment history will not help, as it indicates bad financial behavior.

Marital status

Credit Bureau histories of spouses are separate unless they apply for a joint credit card. If there is debt from this card, the bad financial behavior will be recorded in both credit histories.

Assets

These do not indicate whether one will be a good or bad debtor.

Age

People of all ages can be good debtors; good financial behavior is not limited by age.

Why is the Credit Bureau Important?

          It is very important if you want to borrow money from various financial institutions. Information from the Credit Bureau is part of the consideration for approving or denying our loan applications. In some cases, such as applying for a large loan like a mortgage, this history will also be reviewed. A good history increases the chances of approval, but other factors must also be considered. However, if we have no information in this area, it may lead to denial because the financial institution cannot assess our financial behavior.

How is Our Information Recorded in the Credit Bureau?

          Basic financial transactions, such as credit cards, can contribute to this. However, it is essential to use them responsibly. We only want to have information in this area, not debt.

Will a Poor Credit History Prevent Loan Approval?

          Generally, it will lead to denial because it indicates poor financial behavior. However, there are cases where approval may still be granted, depending on the financial institution's conditions.

How to Fix Bad Credit?

          Pay off any outstanding debts completely and wait for the creditor to report to the Credit Bureau that the debts have been settled. However, a bad history is typically recorded for about 36 months or 3 years, although there are other conditions under which records can be removed before the term ends.

(Thanks to information from: National Credit Bureau (NCB))

          After reading to the end, we now understand that the misconception that the Credit Bureau targets us is incorrect. No one is making us a blacklist; rather, it is our own poor financial behavior that leads to a lack of trust in lending. Therefore, we should always maintain discipline to avoid the hassle of finding money to pay off debts or facing difficulties in financial transactions with institutions. We can use credit cards and obtain loans, but we must do so responsibly, paying on time and in full. With this approach, there is nothing to worry about.

Thank you for the information from www.moneyguru.co.th