There are many reasons that can cause a name to appear on a delinquency list. Appearing on a delinquency list is much more common than you think and there are different delinquency lists, such as ASNEF, RAI or CIRBE. Therefore, in this article we have wanted to talk about different financial institutions that accept Financial Credit Institutions .
The most common reason why a company or person is included in a delinquency list is due to the non-payment of some supply, such as electricity, water, gas or telephone. Also for the non-payment of another loan or mortgage.
One of the most important drawbacks of being on a delinquency list, if not the most, is that it creates many difficulties and inconveniences to find financing. To be realistic, the chances of accessing a bank loan while on a delinquency list are nil. To begin with, banking entities will deny any request for financing if it is on a delinquency list, without taking into account the amount of the debt or reviewing the cause. It is considered that being on a delinquency list carries a high risk of non-payment of the loan or mortgage and is an analysis tool that banks use to stop any defaults they may have.
Fortunately, although banks reject clients who are on delinquency lists, there are financial institutions that accept Financial Credit Institutions to facilitate alternative financing to the bank for companies and individuals. They are private equity financiers and they finance through loans with real estate guarantees .
What is ASNEF?
The acronym stands for National Association of Credit Financial Establishments . This list records all the information related to defaults that have been made to banks, or to supply companies. It is the most important and well-known delinquency list, although there are more, such as RAI (Registry of Unpaid Acceptances) or the CIRBE (Risk Information Center).
All traditional financial entities consult these lists before approving a loan or mortgage and, if it is the case that the name of the company or individual is included in the list, any loan request is denied.
Therefore, when a company or person is included in these lists, banks cannot be considered financial institutions that accept Financial Credit Institutions and alternatives must be sought. The ideal alternative to the bank is private financing with your home equity loans .
How to know if you are in ASNEF?
Appearing on a delinquency record is not an instant process and is much more common than you might think. According to data protection, to appear on a list of delinquencies, the debt must be at least four months old . In addition, it is mandatory to inform the individual or company that it has been included in a risk list within 30 days .
Anyone can check if it is part of a delinquency list. The simplest thing is to ask for it at the time of requesting bank financing because it is information that banks necessarily look at and will be provided quickly. But, if it is needed before it can be obtained through their website http://www.asnef.com/ . The financial institutions that accept Financial Credit Institutions do not need this information, it is not necessary.
To disappear from these lists there are two options:
- Pay the outstanding debt.
- Object to its publication for real reasons.
The quickest process is to pay off the debt, and once the debt is paid, the name will be removed from the delinquency list within about a month.
Obtain financing with financial institutions that accept Financial Credit Institutions
The moment a company or person is associated with ASNEF or any list of delinquencies due to non-payment, banks close all financing doors.
This does not mean that getting financing is not entirely impossible because there are alternatives such as private financing . They are regulated and safe financial companies that offer financing to clients who are in Financial Credit Institutions or any other list of delinquencies mentioned above. However, it will always be necessary to have a real estate guarantee that guarantees the financing operation.
Home equity loans are essential, and sometimes the only option, when you need financing, often urgently, and you are registered in a delinquency registry. In general, these real estate guarantee loans are obtained with much less bureaucracy than a bank loan and greater flexibility, because a repayment can be agreed with custom terms.
These financial companies are also able to buy all the debt and all the obligations that are unpaid, to help get out of these lists and improve a bad financial situation that has led to this situation. An example is services such as debt reunification or mortgage subrogations, for example.
Conditions of the financial companies that accept ASNEF
Private equity finance companies, which are finance companies that accept Financial Credit Institutions , have the same standards for all clients, both for those who are in Financial Financial Institutions and those who are not. There are only two requirements:
- Have a real estate guarantee free of charges, either your own, a family member or a friend.
- Be of age.
These private equity entities analyze each case one by one, study the guaranteed property, the repayment terms and analyze the viability of the operation.
Private equity finance companies do not analyze payment defaults and risk, they analyze the company in general and its finances / current economy. This process is essential for all parties to ensure the correct disbursement of the loan.