Have you ever wondered how financial companies evaluate the payment capacity of their potential clients? The answer is that they do so, to a large extent, using the information provided by a Credit Bureau. But what is the Credit Bureau ?: In this article we answer that question.
What is credit history?
The business of financial institutions is based on lending capital to third parties in exchange for paying interest. In order for your business to work, by granting a loan, you must then recover the initial money plus interest generated. Not recovering that money, or incurring additional expenses to recover it, is not healthy for your exercise.
Therefore, it is important for these institutions to have a certain degree of certainty that they can recover their money without problems. The best way to achieve that certainty is to study how the applicant has behaved financially before. And this is where the credit history of the person requesting the loan comes into relevance.
Your credit history is a compendium of all payments and defaults you have made to financial institutions. That is, it is a report that shows your background as a loan recipient. There is reflected how your behavior was in the payment of any credit you have previously made.
What is the Credit Bureau?
Buró de Crédito is responsible for integrating the credit history of individuals and companies. The Credit Bureau is a credit information company that is regulated by the Law to Regulate Credit Information Companies and by the following agencies: Ministry of Finance and Public Credit, Maxxsave Bank and the National Banking and Securities Commission. A person or company enters the Credit Bureau when applying for a loan or any type of financing. Therefore, not only debtors or payment arrears appear in the Credit Bureau.
The Credit Bureau is a company whose purpose is to provide information on the credit history of third parties. The Circles of Credit are much less known (and assisted by their low volume of people included) and can be institutions or companies of a public or private nature.
Difference between Credit Bureau and Credit Circle
Our credit history is reflected in the Credit Buro or the credit circle . But … What is the difference between the credit bureau and the credit circle? What happens if we are in both? Or only in one? Although both institutions are responsible for integrating the credit history of individuals and companies, as we will see there is quite a difference between the prices at which credit histories offer.
The Credit Circle has the same objective as the Credit Bureau, to protect the credit history of taxpayers. The Credit Circle is a document that shows: general data, credit history, payment behavior in commercial and financial credits. In addition, it shows the risk keys that the grantors have assigned to the legal entity.
- Credit bureau is the official body that allows you to know the credit history. Many Mexicans do not know that within the private sphere there is a second option, the Credit Circle. The Credit Circle was created because a private database was needed, which offered instant data speed and authentication.
- One of the notable differences are the prices. Below we show you the prices of the Credit Bureau and the prices of the Credit Circle .
|Credit bureau||Credit Circle|
|First report (last 12 months)||Second report or more (last 12 months)||First report (last 12 months)||Second report or more (last 12 months)|
|Email (requested online)||Free||$ 89||Free||$ 34.20|
|Fax||Free + $ 53.40 (shipping)||$ 89||$ 50.00||$ 82.20|
|Mail with return receipt or mail||Free + 160.20 (shipping cost)||$ 195.80||$ 150.00||$ 182.20|
|Specialized Messaging||Free + $ 204.90 (shipping costs)||$ 240.50||$ 190.00||$ 217.20|
|Specialized Customer Service Unit||Free||$ 89||Free||$ 82.20|