Credit history refers to information about all loans taken by a consumer. These include both repaid loans, and those for which payments are still made. Having considered this information, the bank makes a decision to issue a new loan to the client. Practice shows that almost half of Russians who applied to the bank for a loan do not understand well what credit history is and why it exists at all.
This concept, as a bureau of credit histories, generally very few people know. But it is there that the data on loans to customers and payments on them are stored. In Russia there are more than 30 such bureaus. Before you go to the bank for a new loan, it is better to find out what the credit history is and how it can help or prevent taking out a loan. To do this, you need to get rid of a few misconceptions on this topic.
There is a single “black list” of unwanted borrowers.
This myth is very popular. The citizens believe that if they get into the “black list”, they will not be able to get loans from the bank yet. The truth here is that in each bank there is a list of non-payers who do not have to count on a second chance in the near future. However, there is no single base, just like the general bureau of credit histories (BCH). In other words, in different sources a person can have absolutely different information. In one bureau, the borrower is listed as quite trustworthy, while the other rewards him with the reputation of a malicious defaulter. To find out which BCH is the information about a person is, in theory, not difficult. It’s enough just to find out your code of the credit history subject and enter it on the Central Bank’s website. There will also be a list of those bureaus that contain information per person. In practice, it is difficult to learn, because few people know their code.
Lack of credit history is a positive development.
Actually, everything is not so unambiguous. The lack of credit history suggests that for the bank the client is a mystery. Therefore, if you are planning to take a large loan or a mortgage, it is better to take out a loan for a small amount and successfully, or even better ahead of schedule, to pay it off.
You can correct your credit history.
It is believed that you can use useful links, someone to pay and remove from the database the mention of delinquencies of their payments. But this is an absolute lie. First of all, the bureau itself does not change any data. Only the person who placed it can delete the information-the bank itself. Yes, and credit bureaus worry about their reputation. If the fact of correcting information for money becomes known, it will mean leaving the business. For the sake of one client, no one will be at risk.
You will have to pay money for getting a credit history.
It turns out that free information about your own credit history is the norm. Moreover, it is even spelled out in the Law on Credit Histories. It says that every citizen can find out his credit history once a year absolutely free of charge. For this, it is necessary to collect a whole package of documents, including a notarized application for receiving this information, and then send it to the bureau. The credit history should come by mail in 2-3 weeks. In practice, the picture is somewhat different. BKI is a private non-state office, which is not interesting to send letters all over Russia at their own expense. As a result, you can spend on notary services, a letter, to spend time, and the desired answer is never to wait.
With the change of passport, you can change your credit history.
If you change your passport or surname, it seems that there will be a new credit history. But in the passport there will be a note about earlier issued passports and the changes that have occurred. It is no coincidence that the bank for the issue of credit requests all pages of the passport. The financial institution will be able to find out the client’s financial history according to its previous data.
After 7-10-15 years, the credit history will be dropped.
This myth emerged from a single rule in the law, which is simply freely interpreted.Even after repayment of the loan in the event that there are monthly and more delays, this transaction will be given a negative status. And it will be displayed on the first page of the history of 84 months. Then this review should disappear. If no new information in history appears during this time, then it is subject to deletion. But today in Russia, credit information only accumulates. Most likely, it will not be deleted either in 7 or in 15 or 30 years.
A good credit history guarantees a loan.
This statement is only partially true. If a person changes his place of work and in a new place is less than three months, then the stop factor will play. And a positive credit history will not help here. Can refuse the bank and because of low solvency. A man with a meager white salary is unlikely to get an easy loan to buy a car. After all, it may turn out that all the money earned will go to payments to the bank. Such a financial strategy is simply not feasible.
Having bribed a security officer, you can secure a loan with a bad history.
Similar myths are spread by fraudsters or black brokers. The fact is that the credit committee includes not only the security service, but also employees of several other departments (up to seven). Residents of the regions will have to wait and approve the head office. If you try to bribe everyone, it will be a very expensive scam.
Having paid the bank a symbolic 100-200 rubles you can secure yourself a good credit history.
The myth appeared on the basis of substitution of concepts. Some banks deliberately deceive people, giving them a cut-down credit report instead of a complete history. Externally, the documents are similar, but the report does not contain the names of banks. This does not allow you to find and fix errors inside the document. So you have to pay sting twice. According to the law, a loan report can not be issued to a borrower at all, than banks are sometimes neglected. It’s good that vigilant citizens stop the illegal trade in these documents. And the fines are very impressive. The calculation of banks that, having lost a small amount of money, citizens usually do not want to complain, to contact the investigation of fraud with documents.
In case of a damaged credit history, a bank loan will never be obtained.
This is not true. Even the worst and “dead” credit history for a couple of years can be revived. You just need to open an account in the bank and deposit your personal money there. After some time, you can take the same commodity credit for an amount less than the contribution. Then you can open a credit card and gradually improve your story.
The credit history contains only negative information.
In credit history, there is not only negative but also positive information on the former loan servicing. You can even submit a personal credit report with a valuable intangible asset, a client’s financial passport. The value lies in the fact that a positive story helps to save time on obtaining a loan, and also to choose the best conditions in any bank. A client with a positive payment discipline is interesting to everyone. But the converse is also true. Credit history, as an important document, remains with the person, even if it changes the name, identity card, residence. And if timely and fully respect the obligations, the value of this asset will only increase.
The guarantor does not need to have his own credit history.
A guarantor or guarantor may also have a credit history, this should be taken into account when signing a loan agreement. And although the law does not directly provide for information about guarantors in the credit bureau, there is no such prohibition either. The guarantor signs all the necessary documents for the loan, why should not the bank check this person? If the guarantor gives the bank the consent to provide information about himself to the credit bureau, then it will fall into a common database.
In order to achieve a positive credit history, it is impossible to delay payment even in one day.
Credit history is evaluated by each bank through the prism of its own policy. Usually, financial institutions turn a blind eye to the small amount and timing and the rarely occurring delinquencies. If delays up to a month occur less frequently than every six months, the bank is likely to deem such a good enough story and approve a request for a loan.