How long do you last at the Credit Bureau in Mexico?

There are still many doubts related to the Credit Bureau. Surely most of us sometimes ask ourselves: how much time does it have to pass before debts stop appearing in the Bureau? And why in some cases follow the registration even when we already liquidate?

This is the first thing we should understand:

This is the first thing we should understand:

What is the credit bureau, what is it for, and why is it good to appear on it?

Well, it is good because that means that you are a subject of credit and that you have a very useful cover letter when you decide to apply for a loan to a credit granting institution.

The Credit Bureau is a Credit Information Society (SIC); An independent company of financial, commercial or governmental institutions, which collects information on the handling of credits that any natural or legal person has had.

But what is the Credit Score?

But what is the Credit Score?

It is a score that estimates the risk of default that a grantor assumes when granting you financing and is calculated taking into account relevant data about your behavior. Among them:

  • How many credits have you applied for?
  • Number of accounts you have active?
  • If you have been late in payments or if you have been a good payer.
  • What is your ability to pay and debt?
  • Breaks, that is, how many times have you stopped paying?
  • Settlements, that is, if you settled the debt at a discount through any deal.

This “rating” can range from 300 to 850 points. From 650 onwards it is considered a good rating, but the higher it is, it will mean that you are a person that entities can trust when you apply for auto, mortgage, business financing, etc. However, if it is very low, it will mean that your behavior as a payer in previous credits is not the most reliable.

Now, since we have a clearer picture, let’s return to the questions with which we started this text: how much time does it have to pass before debts stop appearing in the Bureau? And why in some cases follow the registration even when we already liquidate?

Depending on the amount of your debt is the timing of the registration:

  • When debts are less than or equal to 145 pesos, they are eliminated after one year.
  • In case of major debts between 145 to 2917 pesos, they are eliminated after two years.
  • If debts greater than 2917 to 5835 pesos, they are eliminated after four years.
  • Finally, those that are greater than 5835 pesos, are eliminated after six years as long as they are less than 2 million 334 thousand 063 pesos, the credit is not in judicial process and / or you have not committed any fraud in your credits.

If you had delays or defaults, you don’t have to wait for the information to be erased to improve your credit history. If you catch up, this will be reflected in the Bureau and will show that you are complying with your payments.

There are also cases in which the backlog is so large and the debt has grown to the extent that you can reach an agreement with your creditor. This pact is known as removes and, if you decide to do so, your registration will be deleted until after 6 years.

What is a remover?

What is a remover?

The “take away” is an agreement between the lender and you through which you agree to pay a percentage of your debt and the creditor, to give up on the rest of the capital you lent.

This means that, if you decide to liquidate by means of a withdrawal, you should be aware that this situation will be recorded in your Special Credit Report with the legend 97, which means “account with partial or total debt without recovering” and that will result in A bad note in your history become a credit subject again.