When it comes to financial risk, banks that operate in Spain use the register that contains the client’s resume regarding loans and credits granted to them, whether they are natural or legal clients. This reporting system is known as Good Credit. This is done as a protection, to know the levels of indebtedness of these and evaluate future concessions.
They are the acronym for Risk Information Center of the Bank of Spain. This is a confidential public service that manages a customer database with all the transactional information regarding loans and credits that the banking entities declare to the Bank of Spain. Thus, when requesting this, banks have the possibility to make estimates on the risk situation of customers.
Why is Good Credit so important?
Because based on the data available on customers, banks can establish the likelihood that a user can bring negative financial consequences in direct or indirect terms. This as certain financial commitments are assumed or not.
The data declared to the Central of Information of Risks by the financial entities are updated at the end of each month, so that they reflect faithfully the situation of indebtedness of their holders.
Differentiate between Good Credit and delinquent lists
The first big difference between the Information Center described above and the delinquent lists are that, in order to appear in this list, it is not necessary to have a real debt. It is enough to have received a credit of more than 6,000 euros (direct risk) or be part of such an operation (indirect risk). Although if a default is reached and debt is generated, the bank must inform the Bank of Spain.
The concept of indirect risks also makes a fundamental difference with respect to delinquent lists: a client could appear on this list even if he does not have credits in his name, simply if he is a guarantor of a person who has a credit considered a risk.
Another important difference is that the bank does not send the client a notification informing him that he has been discharged from Good Credit. If the credit meets certain requirements such as the amount of more than 6,000 euros, the bank is obliged to create an entry with its name in that file. In addition, the rest of the banks have free access to that information, but what you should do is inform them that you have that right to consult.
How to know if I am in Good Credit?
Both individuals (natural and legal) and banking entities can make free electronic consultations with this entity and, in case there are inaccurate or incomplete data, request its rectification or cancellation. However, it is not shown which banking centers the product has been contracted with nor the financial conditions. You can be in the history of the ASNEF and the Good Credit.
The procedure to know if you are in the Good Credit is very simple, just ask the Bank of Spain in Madrid or any of its branches in Corunna, Oviedo, Bilbao, Valladolid, Zaragoza, Barcelona, Palma, Valencia, Alicante, Murcia, Malaga, Seville, Badajoz, Tenerife or Las Palmas presenting the DNI or other valid official document. It is entered with the client data to know information such as:
- Customer contingency class (loans, commercial discount, guarantees).
- Approximate terms and guarantee (personal or real).
- Credit status.
Other options to know if you are in the Good Credit are:
- Send a letter with a photocopy of the DNI or official document and with the address where you want to receive the response.
- With a digital certificate, through the Virtual Office of the Bank of Spain.
- Consult online, exercising your full rights of cancellation or rectification of the data that appears.
How to leave Good Credit?
The best and most effective way of not being enrolled in Good Credit is to comply with the established obligations, thus dispelling any doubt of default. The meaning of this is that when the loan is settled, the bank will report that fact and its entry in the Good Credit file will be deleted. One of the few alternatives presented is that of online microcredits or personal loans online.
In any case, it should be remembered that having an entry in Good Credit does not have to be something of concern, at least if the customer continues to meet their credit return obligations. However, it is advisable not to abuse contingency loans, as banks could take it into account for future operations.