As debts such as taxes and SGK debt began to affect the credit rating, the question of whether unpaid invoices affect the credit rating started to come. Therefore, it would be useful to touch on the credit rating and the factors affecting it.
It is among the factors affecting the evaluation in requests such as credit rating, credit, and credit card applications that show how much people fulfill their responsibilities arising from financial relations with banks. In this context, having a high credit score can provide people with significant advantages in cases such as credit and credit card applications.
What Affects the Credit Rating
Until 2014, factors affecting the credit rating consisted of banking data only. In this context, debts to banks, payments made based on debts, banking products used, how often banking product applications are made, etc. Before 2014, the factors to be considered were.
Mobile phones, electricity, natural gas, etc. are among the factors affecting credit rating with a change made in 2013. bills were included. These invoices are thought to have an overall impact of 8% on the credit rating, but it is not clear how much the algorithm affects in order not to be misled.
Why is Invoice Payments Included in the Credit Rating?
The most important reason for the invoice payments to be included in the credit rating is that they have a share in the income and the payment of these invoices is a legal requirement.
When banks are allocating loans, they want to know how much the monthly installment payments of the loan will occupy in the total budget of the person. In this respect, invoice payments are also included in the credit rating, since it occupies a place in the person’s monthly budget and reduces disposable income.
The smaller the percentage of consumers’ disposable income for the loan installment payment, the more boner the bank will be to allocate loans.
Does Tax Liability Affect Credit Rating?
In addition to invoices such as GSM, electricity and natural gas, it is known that tax and SGK premium payments affect credit rating. The most important reason that such payments affect the credit rating is that, just like invoice payments, there is an obligation to pay in tax payments and these payments have a share in the disposable income of the person.
Failure to pay tax or social security premiums will cause the person’s credit rating to drop. In addition, banks do not provide credit allocation for those who are pursued within the scope of tax debt, and it should not be forgotten that there should be no follow-up.
When is the Credit Rating Renewed?
One of the correct mistakes about the credit score is that the credit score was renewed. The credit rating is not renewed, it moves up or down within the gradual payments made or the banking products used and this is a process. The credit rating will not be zero at once or increase to 1900 points at a time. This is because every banking procedure has before and after. For example, a consumer who will be blacklisted should not have paid the loan debt for 2 months before that and will start to fall before the credit rating becomes zero.
How much do unpaid invoices affect credit rating?
One of the crucial questions is how many unpaid invoices affect the credit rating. Although there is no official answer by the Credit Bureau of this matter, in cases such as irregular payment of invoices, the figures that do not really matter are not playing. So, if you pay your bills late for 1-2 years, your credit rating will go down to the bottom levels. So with 1-2 month delays, there is not much difference.
If you have made a late bill payment, you can find out your credit score using Good Finance and see how much invoices have an impact. We see that ‘Will unpaid invoices affect the credit rating? We gave a very clear explanation of the question, and the late payment of invoices is among the reasons affecting the credit rating.
If Your Credit Rating Has Fallen Try To Upgrade
If your credit rating dropped for any reason; In this case, you should take some precautions to upgrade your credit rating. You can access our detailed How to Upgrade Credit Rating from this section. My credit rating has already dropped. There is nothing to do with your mindset, it will cause you to eat a red pen lastly before the banks, and then you will not be able to withdraw a credit card or credit from the banks.