Do you know what Credit Checker means ? Have you ever heard of this?
If you have tried to process a loan, you have probably been asked at some point the following: Are you in the Credit Checker or some other similar record?
For this reason, from this same website we are going to explain what the Credit Checker is and what its function is in signing loans.
Credit Checker or National Association of Credit Financial Institutions
The Credit Checker is a company that works as a record of delinquency in our country, that is, it works as a list where debtors of all kinds are recorded.
The function of the Credit Checker is supposedly to have an information base through which the collaborators or partners of the Credit Checker can know the creditworthiness of the clients.
Something on which we at MaoriArt do not agree since in our opinion the Credit Checker does not really measure the solvency of the clients.
If we understand why companies use this variable to filter their customers but we do not share the same point of view.
In loan firms, for example, the Credit Checker is often used to deny or filter operations.
In traditional financial institutions such as banks and those that make consumer loans, it is usually used to deny operations.
On the contrary, in private finance companies and private equity companies it is often used to classify loans.
We can find in these particular financial loans with Credit Checker and without Credit Checker.
In fact, many of them do not usually have problems with the Credit Checker.
How does the Credit Checker work?
The operation of the Credit Checker as a record of defaulters is very simple.
The registry itself is not who really includes the debtors here, but rather the alleged creditors (finance companies, telephone companies, department stores) who do it.
What these companies usually do is be members of the Credit Checker to whom they pay monthly to have access to the data in their records.
The companies that work with the Credit Checker pay the registry to be able to have access to its database and to be able to include their debtors in the list.
Why would a company want to include its debtor on the Credit Checker list?
Taking into account the usefulness of the Credit Checker as it is used above all as a measure of pressure to pay the debt, it is logical to think why it is done.
When creditors include their debtors in one of these lists, what they usually look for is that the debtor pay their debt for that.
As you know the inconvenience that the Credit Checker generates for debtors in any matter, they hope that this will liquidate their debt.
A person who is included in a delinquency record such as the Credit Checker has difficulties, among other things, to access financing.
Also for other things such as financing purchases or registering a telephone line.
For that reason, then loans with Credit Checker are always in demand in the market.