The worse the score, the worse the loan terms offered. Credit Bureau assumes a negative decision by the bank and the poor creditworthiness of the customer. This means that every new loan application further reduces the creditworthiness of the consumer.
Deal with bad creditworthiness
Anyone who has to deal with bad creditworthiness gets into trouble so quickly anyway, is the product par excellence when it comes to having an ordinary attitude to life despite a bad Credit Bureau entry.
But even when collecting data, many consumers do not know what is important for Credit Bureau or not. Credit inquiries that have nothing to do with a credit per se, for example, are also dangerous.
However, all well-known credit institutions immediately forward information to Credit Bureau in the event of a loan application – with an impact on the creditworthiness of a consumer. This procedure is extremely difficult for people with poor creditworthiness, because those who usually only receive bad credit offers because of poor creditworthiness, must of course have many different types of information. You might want to catch up to get a reasonable offer at all.
As a result, the creditworthiness is further weakened, and with it the chance of receiving a cheaper service later. Accordingly, one could speak of a cycle from which one can only get out if one completely gives up a credit. Anyone who, despite many inquiries, does not take out a loan contract must be willing to be judged by Credit Bureau as less creditworthy.
This is also a problem area for current accounts and credit cards, which do not require proof of a Credit Bureau entry when opening the account.
Avoid Credit Bureau score?
However, if you opt for a regular current account or a card, you have to be rejected on the one hand and a grade with a high probability of default on the other – because a credit line is created for a card and a credit facility is granted for a current account. If you want to avoid the Credit Bureau score being unnecessarily burdened by loan applications, you should look around for a loan online or receive informal offers from credit institutions.
Reports from former bank customers of the relevant banks can also help assess what loan interest rates will look like. Whoever decides on a loan order from a house bank usually gets the best interest rates on the world market.