Here is how you become a bad payer
How do you become a bad payer? A question that undoubtedly ask those who are faced with the payment of various loans and fail to meet deadlines.
The delay of one or two amortization installments is enough to find yourself reported as a bad payer. A status that can make access to credit difficult. The subjects that are indicated as bad payers in the SIC (Credit Information Systems) lists are considered financially unreliable subjects.
Reason why it will be difficult to obtain new financing if you are reported as bad payers. This unless special forms of loan such as the assignment of the fifth are used.
Having said this, let’s see in detail how you become a bad payer and how deletion from SIC lists works.
How Credit bureau reporting occurs
SIC databases are intended to collect all the data, provided by credit institutions, regarding the loans requested and obtained by private individuals and businesses. As already mentioned, those who had difficulties in repaying a loan are reported as bad payers.
Reporting in SIC lists takes place by the bank or financial company with which the credit line is in progress. In Italy there are several SICs, the most famous being that of the company Credit bureau Spa. In fact, we usually speak of Credit bureau reporting in reference to the entry in the bad payers lists.
The name of the subject reported as bad payer can remain in the Credit bureau lists for a variable period of time depending on the seriousness of the default.
Specifically, the following data retention times are envisaged:
- 12 months, from the date on which the bank communicates the regularization of the debt, for delays related to one or two monthly installments.
- 24 months, from the communication of the regularization of the debt, for the delays related to three or more monthly installments.
- 36 months, starting from the date scheduled for the repayment of the debt or from the last update of the bank, in the event of serious arrears or unsecured loans.
How the Credit bureau cancellation occurs
The deletion of data from the Credit bureau lists takes place automatically at the end of the aforementioned storage times. Cancellation is free of charge and does not require the submission of a request in any way.
However, there are situations in which it is possible to request the deletion of data from the Credit bureau lists before the aforementioned storage times have elapsed. This happens when the data reported by the SIC are incorrect. Situation in which it is possible to request the deletion of data from the bank that granted the loan, or by contacting SIC directly.