Has it happened to you that when you go to a job interview they ask you for references? Well, the same thing happens when you go to a bank to request a loan. References are a requirement that cannot be missed.
But have you wondered what they are for, or what is the purpose of requesting them?
Pay attention, because we will explain a little more about this topic. The first thing you should know is that it is a requirement of the institutions and they use it to find out the impression that a person has about another about their responsibility and economic behavior, the objective is to know how much an institution can trust the person to which you will give a credit.
In addition, the references are important, since they help to provide the institution with the necessary information to keep an orderly control of the operations carried out.
On the other hand, they not only help the institutions, they also have benefits for you, because you should know that if you are a new client, they will facilitate your subsequent procedures.
Some of the reasons they ask for a reference are:
- Know if the client is or was up to date with his payments; if at any time you fell behind or stopped paying a debt.
- Know if there is any problem that generates a reason for suspicion in the client. If you plan to apply for a loan, the financial institution will ask you as a requirement, data from a family member or friend, to know you in detail.
The data that they commonly request from your references are:
- Full name.
- Address or, failing that, place of work.
- Cell phone number.
- Phone number, usually home.
- And email.
As you can see, the requirements that are requested are not many. Take into account some important information from your references, since the granting of credit also depends on it. Questions such as: how long have you known him, how and where you meet, the relationship you have and relationship did, are the most common.
So you don’t get confused…
There are other types of recommendations that support you as a responsible person; We are talking about commercial references and endorsements, but although they fulfill almost the same function, there is a huge difference.
The commercial reference is a document that can be granted by a company or trade to refer to a person and verify their reliability. You can indicate the time that the relationship between that company and the person lasted, in addition to attaching the credit history.
With this document, the person supports their credit behavior with the institution or company where they will have new relationships. You should know that under no circumstances is the person who grants the commercial reference obliged to pay if the client fails to pay.
On the other hand, a guarantee is someone who agrees to support the payment of the debt with his assets, in case the debtor defaults on his financial obligations. That is, the endorsement is the one who has to face the debts and is obliged to pay them.
Without a doubt, references are of great help when it comes to obtaining a loan or carrying out some other procedure, so choosing the right people is important, so follow these tips:
- Make a list: to make it easier for you to choose your references. Opt for trusted people who are responsible, include friends and family.
- Select correctly: choose people you have known for a long time, who have a good impression of you and who are willing to provide concrete information about your economic performance.
- Inform: Before making any request, notify the person you chose for reference. Inform them the reason for which you provided their data, since they also have the right to know how their information is being used; this way you will also be prepared for when you receive a call from the institution.
- Confirm the information: you must check that the information you provided is up-to-date, check with your reference so that when it comes to contacting her, she does not have difficulty responding to what is requested and the interest of the financial institution is not lost.
- Stay in touch: make sure that during the time your procedure lasts, you have contact with your reference; Also thank them for their time and attention.
- Real information: remember not to exaggerate or invent the data you provide; It provides totally real and reliable information.