Skip to content

What about the credit bureau and debts of someone who dies?

November 2, 2020

One of the major problems for a deceased’s family is what will happen to the debt that person leaves behind, particularly those related to credit cards and loans.

4 min read

The opinions of the employees of You are personal.

What about the credit bureau and debts of someone who dies?
What about the credit bureau and debts of someone who dies?


The Credit history It is a report compiling the behavior of people as payers or not when they applied for a loan during their lifetime. There are two in Mexico Credit information company (SIC), the Credit Bureau, and the Credit Circle, which are the only ones authorized to monitor our history. However, one of the main problems for a deceased person’s family is what will happen to that person’s debts, especially those associated with credit cards and loans.

Although each bank has a different process in place when their customers die, the Coru.com financial services platform provides guidance on the general steps that need to be understood.

Cancel a deceased person’s credit cards

Basically, it is important to know that financial institutions have an obligation to cancel a credit card when the holder dies and that they also eliminate the debt. Department cards don’t necessarily eliminate debt.

A debt generally disappears for two reasons: 1) The cardholder takes out insurance at the time of signing the contract that covers the debt in the event of death. 2) The bank will forgive the debt on the line of credit when the holder dies.

In either scenario, family members are not required to pay debts in the account at the time of death, but must report the person’s death within 180 days.

If fees are incurred after death, these must be paid. This applies to both the cardholder and additional cards.

What about someone from a deceased’s debt and credit bureau?

Since we began a credit life, all of our activities are included in the monthly report from the bureau or credit group.

When a cardholder or debtor dies, the bank or financial company sends a notice to the credit bureau, which in turn inserts a “watch key” into that person’s record to prevent misuse of the information. For example in the case of identity theft.

When the debts of the dead affect the living

In the case of joint loans with a note, co-debtor, group loan or the like, the debt is shown in the credit history of all co-owners and those responsible for the payment, such as Coru.com, Wolfgang Erhardt Varela, spokesman for the Presidium of Recognition. This means that when someone dies and has been a bad payer, the negative history will be reflected in all of the co-owners of that loan.

If the credit that the person had in life is for an asset that can be inherited, then the credit agreement may affect the heir positively or negatively.

The main recommendation is to know the contracts in the also called life insurance in advance Release of funds due to death, Regime of equilibrium due to death, Compensation insurance or Release of the unpaid credit.

If you have remarried and / or changed legal beneficiaries, you will also need to update the details of the relevant banks and credit institutions so that the debt is not passed on to people with whom you no longer have a relationship.