Until recently, a large proportion of banks did not see non-bank liabilities in the Credit Checker report and this changed because 2 leading banks at the moment, i.e. Good Finance Bank and Good Credit Polbank introduced systems that catch-all banking and non-banking liabilities that are also short-term and long-term payday loans.
Before the introduction of these applications, the indebted person could apply for credit for a short period of time because the analyst had not seen until the client had checked the account statement whether the client had non-bank obligations or not. For a long time, it was possible to process such topics and often ended in a positive decision where the client was given funds and could spend them on any purpose, i.e. also to straighten his financial situation.
What is the current situation with non-bank repayment?
Good Finance Bank did not require an account statement when the client worked in a large known company under an employment contract or if he was a freelancer. Also, no statements needed when working in the budget.
A similar situation was in Good Credit where the receipts alone were sufficient, however, the analyst could request a full account history in 3 months, where he could see payday loans and thus give a negative decision.
From July 2017 Good Finance Bank and Good Credit they have changed the system policy and application, therefore all obligations are loaded when downloading the report.
If the commitment is for a period of 3 months and longer, we are able to consolidate such payday pay but if the payday is short-term, we have to accept the entire load (i.e. if we have payday payable for USD 1000 for 30 days, the entire USD 1000 is treated as an installment).
Unfortunately, having short-term payday loans we are not able to consolidate, so it will be really difficult to get a loan. With long-term commitments, there should be little change and in the case of capacity, the analyst’s decision should be positive.
At Good Credit, unfortunately, but if the payday loan is detected, the bank’s decision is immediately negative. Therefore, having a non-bank commitment is better to let go of this bank because it’s a shame to ask.
Which banks are consolidating payday loans then?
At this time, you can refer to several institutions:
- The aforementioned Good Finance Bank where the condition is having long-term payday loans because, in the case of short-term payments, the entire installment is charged. Therefore, with smaller amounts, there is a chance to get a loan.
- E-Money Bank, which sees no problem with consolidating payday loans, all you have to do is go to the right banker. The experience of franchise branches works best because department decision-making often comes out and the application does not have to reach the analyst. Loan period up to 144 months but only if the customer has or had any liabilities in E-Money bank and repaid them on time.
- Good Lender Bank, which approaches the issue of consolidation of payday loans very well, however, this bank is allergic to the number of inquiries as well as the liabilities paid out. In the case of payment of several liabilities in the last e.g. 2 months, the bank from the machine can give a negative decision. The bank calculates income very well, has a long loan period (up to 144 months) and does not see a problem with the consolidation of all non-bank products.
What should you do with payday loans?
I hope that the information gathered here will help those who are over credited. It is important to deal with the matter well in advance because each backlog negatively impacts history and, as a result, credit options.
Let’s not make inquiries in every bank because after 3 unsuccessful inquiries there may be a situation where each subsequent machine will give a negative decision and if we have questions it is worth trusting an expert.