You’ve probably noticed, as you browse through the listings for BAR listers, that they look a little more expensive than “traditional” loan offers. Well, this is indeed the case, and we’ll explain why in our article below.
Let’s start with the BAR
Now known as the KHR list. The purpose of the Central Credit Information System managed by BISZ Zrt. Is to prevent customers, however negative at first, from cheating on the banks: walk over to another financial institution to open a “clean sheet”. We also have to say that this transparency greatly reduces the risk of lending, and ultimately gives customers who get credit a cheaper price : otherwise, “blind lending” would require banks to incorporate this risk into their pricing.
This partly answered the question in the title: loans to barers are more expensive because the existing debt or recently settled (under the new regulation only one year passive membership is 5 years ) casts a “dark shadow” makes it more risky to lend to him in Hungarian. Simply put, credit is more expensive because you have a better chance that the customer may not (again) pay properly.
Redemption is cool
Is this really the case, or is it just an excuse for financial institutions to lend more expensive money? The very existence of BAR / KHR implies a market need for loans to debtors in the scheme. These are mostly smaller consumer loans , as a household carrying a large loan would not be able to pay much larger monthly installments. Another important type that bartenders are interested in is the institution of redemption of debt: debtors want to settle their various debts and only have one place .
Typically, banks and financial service providers are behind venture capital: the greater risk is offset by increasing the price of their products, making bar loans more expensive than traditional, consolidated banking products . Besides, not only Hungarian service providers lend to KHR listers, but also foreign banks – primarily Austrian ones – offer loans to them. It is important to note that anyone on the KHR list, mainly in active status but still looking for money, should look at the terms and conditions under which they will still get a loan, as unfortunately many people specialize in plundering troubled people…