Recently, the Green Ecological Party of Mexico has insisted on promoting the law initiative presented by Ricardo Astudillo Suárez, federal deputy of said bench for the state of Querétaro, last April. This, roughIt consists of eliminating the alleged negative impact that the Bureau of Credit in people’s lives has.
Among other points, the initiative seeks that Credit Information Societies (SIC), also known as the Credit Bureau ‘do not violate the rights of people by denying them access to credit or other financial services, because their personal information could contain information that can be misunderstood or not to reflect the financial capacity of the person.
To better understand the panorama it is important to remember some myths and credit bureau:
- Both credit bureau, as a credit circle, the sic we have in Mexico, arose as a result of payment behavior models dating from the 18th century and were born in the United States.
Know more here: The past, present and future of credit bureaus
- In that somewhat remote past, the bank lent money in a controlled risk environment: the population was small, people knew each other and therefore, the intention of payment (or the lack of it), was in the public domain. When the panorama changed, the need arose to create a credit data record that was more reliable than the word.
- This registration over time became what we know today as a credit bureau, but its function as at that time, remains to register the payment behavior of people and make it the knowledge of credit grantors so that they determine how much risk they run when giving financing to a person with a good history or with a poor.
- Therefore, we must stop believing the myth that credit bureau gives you or denies credit. Actually, when a person learns to use credit properly, that is, he takes advantage of it and pays it in a timely manner, what he does is gain the confidence of credit grantors, which will eventually give you larger credits and better interest rates for being a good payer.
Do you want more information? Read also: Myths and realities on credit bureau
- Now, no banking institution can consult your credit history as well as. The SIC or Credit Burós inhabit the credit records of natural, physical with business activity, and moral people. But you control who can see your history, that is, so that credit grantors can review it, they necessarily need the authorization of the information holder.
- Finally, if you detect that the information in your credit report is incorrect, you have an open letter to request a correction. Do it in a credit bureau and in a credit circle, you have the opportunity to make two claims for free per year.
For all the above, what would happen if, in effect, the credit bureau that you now know and know how it works disappeared? These would be some of the repercussions:
- There would be no sufficient or reliable information to give credit harming the consumer, businessmen, companies and governments
- Credit would increase for having greater risks
- It would become slower and more difficult to grant a loan since, in some cases, greater guarantees or guarantees would be required
- It would be less likely that there were new credit grants that would stop competition
- Government income would be reduced because there would be less credit business
- The defeated portfolio would rise through there would be no will to pay (because the credits would not be reported to a bureau).
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