That way, they are no longer part of the credit score calculation. However, care is needed. This does not mean that it ceases to exist.<\/p>\n<\/div>
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Your default history will still be available for consultation. Not to mention the company you owe may continue to issue charges. So don't rely on it. The ideal is always to remove the old debts<\/strong>.<\/p>\n<\/div>\n
The difference between expiring and prescribing<\/strong> old debts<\/h2>\n<\/div>\n
The difference between expiring and expiring old debts (Image: Rtek)<\/figcaption><\/figure>\n<\/div>\n
These terms are quite different. However, many people believe that they mean the same thing. Just above, you already learned what an expired debt is. It can be charged even after the default is registered.<\/p>\n<\/div>
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In the case of prescribed debt, this does not happen. So, imagine the following situation. You owe a debt to a certain company. Thus, the latter issues a statement for payment.<\/p>\n<\/div>
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However, you do not pay off the debt and the creditor does not take any further action. So, when the debt expires, the company can no longer charge you. This is legally determined.<\/p>\n<\/div>
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It is necessary to understand that the company cannot take legal action because of this debt. However, she has the right to do so before he prescribes it.<\/p>\n<\/div>
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In any case, it is a very unpleasant situation for those who are indebted. This is especially true if Justice is on the side of the creditor.<\/p>\n<\/div>
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Thus, she can move various actions such as blocking the current account balance. Still, as a last resort, she can opt for the pledge of assets.<\/p>\n<\/div>
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In addition, some debts may prescribe in less than 5 years. Rents are great examples. Therefore, it is very important that you be aware of these possible debts.<\/p>\n<\/div>
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Old debts: name off the negative list<\/strong><\/h2>\n<\/div>\n
Old debts: name off the negative list (Image: Adimplare)<\/figcaption><\/figure>\n<\/div>\n
As stated above, after 5 years your debt expires. This removes it from the credit bureau's database. So, anyone who consults your CPF will not find it.<\/p>\n<\/div>
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However, don't be fooled into thinking your name is clean. Your debt with banks and other institutions remain exposed at the Central Bank. All in a scheme called Registrato.<\/p>\n<\/div>
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That way, you can apply for a credit or financing. However, be aware that the bank may look up your name in this file. As a result, your chances of approval may decrease considerably.<\/p>\n<\/div>