Non-bank loans and registry control in practice

Non-bank loans and registry control in practice

The problem with debtors’ registers can be encountered in a case when they are delayed by repayment of a bank or non-bank loan, credit card loan, or even fail to pay in time for a telephone. Although a negative record in the debt register may not automatically mean “stop” to obtain a normal loan, it will generally make it more difficult to apply for a loan.

Banks examine debt registers virtually every time they apply for a payday loan or credit card. In the non-banking sector, the situation is slightly better, but getting a loan without a register of debtors is not even easy here. For classic non-bank consumer loans, borrowers’ registers are reviewed.

Available SMS loans before payout

Available SMS loans before payout

Typically, some providers of so-called pre-pay loans (or ‘instant loans’ ) are tolerant to registry entries. Also, due to the fact that a small amount (up to 5,000 or 10,000 CZK) is borrowed and for a short period of time (1 – 30 days), it is realistic that the lender will be sorry for the minor offense in the registers, or other registers will not be otherwise check the client’s creditworthiness otherwise. For this reason, sometimes these loans are labeled “for everyone” or “for everyone”. However, even here, not all applicants really succeed.

As a loan without a register, such a loan is usually referred to for which debt registers are checked, or negative entries in those registers can be tolerated. These include mostly short-term loans provided by non-bank companies. Easier availability, however, is offset by higher prices and risks.

Money “immediately” – on account or on hand

Money "immediately" - on account or on hand

Funds for these products can often be obtained very quickly – money can be sent to your account almost immediately after reviewing and approving an online application. In practice, this means that funds can be available in your account for example within an hour, but sometimes it can take much longer. Some companies also send money by postal order, so payment can be received in cash or “on hand”. But this is considerably longer than transferring money to an account.

Long-term loans without registry control

Long-term loans without registry control

In addition to small short-term loans, it is not a problem to obtain a long-term loan without registers. Especially when applying through loan aggregators, the chances of success for clients with negative records are very good. For example, it is possible to obtain CZK 300,000 with a maturity of six years.

Registry problems can be avoided

How not to get into a situation where a person needs a non-bank loan immediately and yet without checking the debt registers? And what to do if a registry problem has occurred? More detailed information is available in the following articles:

  • Don’t you handle debts? Try consolidation or repayment schedule
  • How to get an extract from the debtors register
  • How to Build a Family Budget
  • How not to get into execution
  • How banks evaluate clients’ creditworthiness
  • Debtors registers in the Czech Republic
  • Consumer Protection and Consumer Protection Association

American Mortgage

American Mortgage

For amounts above CZK 100,000, it is possible to get a loan without looking into debt registers through the so-called non-bank American mortgage – ie a non-purpose loan (“for whatever”) with property collateral. Some non-bank companies provide this product without proof of income and some are willing to tolerate even minor registry entries. In this way, it is possible to obtain CZK 200,000, 300,000 or CZK 500,000 without any major problems, for example, for purchasing a car or repaying existing debts. An example of this type of loan may be an American mortgage from VitaCredit or Acema.