The financial services market is growing, offering clients more and more different solutions to obtain additional cash. Loans without Credit Information Bureau are one such solution.

It is common that loans without Credit Information Bureau are financial means that we can get from a financial institution without verifying our creditworthiness in external economic information databases. However, is this a good solution for us borrowers?

Credit Information Bureau

The Credit Information Bureau is an institution that collects and provides information on financial liabilities. Therefore, there are notifications about both bank loans and non-bank loans, payment limits, installments or unpaid bills or fines of a given person.

The information collected by the Credit Information Bureau is used by various financial institutions, both banks as well as loan and leasing companies. Thanks to Credit Information Bureau, authorized institutions can verify their potential clients and determine what commitment will be acceptable to them so that repayment of the loan or credit is not too heavy for the household budget.

The functioning of the Credit Information Bureau has made it easier and more time-consuming to verify the creditworthiness of loan or loan applicants. In exchange for the use of information collected by the Credit Information Bureau, financial institutions transfer data about their clients to it, thereby contributing to the expansion of the database collected in this register.

What benefits does the Credit Information Bureau give consumers?

The data collected by the Credit Information Bureau can be used not only for institutions to verify the financial standing of customers but also for us, consumers. The first benefit, resulting from easier verification of your creditworthiness, is speeding up the receipt of a loan or credit, and the application process is more convenient for you because you do not have to provide many documents that would confirm your financial situation.

Often, a Credit Information Bureau report is sufficient, which contains all relevant information on this subject. However, this is not the end of the benefits. By downloading the Credit Information Bureau report for yourself, you can check your credit history and current payment situation.

So you will find out if you have any forgotten debt or late payment, e.g. installments for a new fridge, which may have a negative impact on your assessment of creditworthiness. In addition, you will check who asked about your data and how many obligations you have, so you will know if anyone has tried to take a loan using your identity.

So are loans without the Credit Information Bureau good for consumers?

Each loan or credit company is required to verify the creditworthiness of its clients when applying for additional funds. However, not all companies verify their clients in the Credit Information Bureau – some of them verify data through other business information registers.

However, if the company in which you want to use the loan without Credit Information Bureau does not verify your creditworthiness and the data you provide, it should be cautious, as it may be an entity operating in the gray economy, and the cost of the loan may be very high due to the need to compensate for the risk that the lender takes.

However, this does not always have to be dangerous – if you are already a customer of a given company it is very possible that when applying for another loan such verification will not be necessary, because the service provider knows your repayment morale and knows what kind of customer you are.

It also has information about you verified the first time. By building your trust with the lender through diligent repayments, in many cases, you will be able to count on another loan on better terms and with additional benefits.