How long does it take for debts to disappear from my credit history?
81% of Mexicans owe less than $10,000 pesos in their credit history, 18% have a debt of $10 to $100,000 pesos, and only 1% owe more than $100,000 pesos, according to a survey conducted by the financial services comparator Coru.com and market research company Brad Feebbo in October 2017.
If a person applies for any loan, credit, credit card or postpaid service (such as cell phone or pay-TV), is recorded the amount of the debt, and the payment behavior in the credit history concentrated by the Credit Information Societies (SIC).
If you acquire any debt, you should be aware of the commitment involved, because if you do not pay on time and form, the score in your credit history will be affected and you will lose the opportunity to request better financial products.
Although over time some debts are removed from your credit history, this does not mean that your credit score will improve, because it will be a precedent that you did not pay some debt.
The time it takes for a debt to disappear from the credit history depends on the amount, if the debt is from:
UDIs: Investment Units (UDIs) are units of value that are based on price increases (inflation) and are used to settle mortgage loan obligations or any commercial activity.
25 UDIs, approximately 151.91 pesos, will disappear after 1 year.
500 UDIs, approximately 3,038.30 pesos, will be eliminated after 2 years
1,000 UDIs, approximately 6,076.59 pesos, will be eliminated after 4 years
Debts greater than 1,000 UDIS, more than 6,076.59 pesos, disappear after 6 years, as long as:
The debt is less than 400 thousand UDIS, less than 2 million 430 thousand 637 pesos.
The credit is not in the judicial process
No fraud has been committed
Note: The deadlines for deleting a debt from the credit history begin when the entity that granted the credit reports to the Credit Information Societies the last payment date, or since the last update of the person's credit information.
DEBT RELIEF RECOMMENDATIONS
Pay in time and form. In order not to generate interest or extra fees for delays.
Look for ways to refinance the debt. Today there are companies, known as debt repair companies, that help you pay off debts, either by paying a smaller amount or extending the time of payment.
Transfer the debt to another bank. Some banks offer the possibility of transferring debts from other banks with preferential interest rates or a longer term, although to make the change you must have your payments up to date, find out what conditions exist before.
By Mexicanist Source Excélsior