In 2019, banks received a credit history 5.12 million times, 78% more than in 2018. Most people remember credit history, and some learn for the first time now when the bank suddenly refuses to issue a loan. The borrower either had delinquencies on previously taken loans or has a poor credit rating, which banks are guided by. However, the credit history of any of us can affect the possibility of obtaining a loan.
Credit History Knows About Your Debts for Housing and Communal Services
Sometimes even a client who repays a debt on credit obligations in good faith can get a refusal from a bank.
You should pay attention to delays in payments or other debts, such as when paying bills for communications, utilities, or transferring alimony. In addition to personal information and details of loans and borrowings, their maturity, information about the outstanding balance, and the presence or absence of overdue debts, banks are trying not to get involved with malicious non-payers for housing and communal services. For example, insurers ask for credit history to determine a fairer price for a policy.
Debt In Inheritance
Sometimes, along with the property or instead of it, a person receives numerous debts as an inheritance. There are cases when the heirs were forced to sell the property acquired under the will to cover the obligations of the deceased and spend their funds. To conclude entering an inheritance, you need to determine if the dead has debts. To do this, you need to contact a notary. From his credit history, you can find out about the credit obligations of the dead person.
Data for both your credit card and your mortgage
After adopting a single scale, it will be easier for users to correlate the values obtained in different credit bureaus. You can store that information in several organizations at once, and with a different maximum score, it is not always possible to compare the values. It is essential when the values are borderline and different bureaus have additional data. For example, one has data for both your credit card and your mortgage, while the other has only your mortgage; to assess the credit history quality as accurately as possible; it is necessary to compare the results from both bureaus. A favorable credit rating does not guarantee mortgage approval: each bank has its scoring system and considers various factors when considering applications. It is not recommended to apply to microfinance organizations: they have lower requirements for borrowers. Suppose you plan to receive a large loan, for example, a mortgage in a bank. Therefore, a new loan received may indicate that you were refused by the bank but not refused here. In that case, it is better to apply for a consumer loan here: this way, you will reflect your solvency in the global credit history and the intra-bank one.
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There are cases when incapacitated people under care took loans. At the same time, his guardian must deal with banks and tax departments.
It is impossible to forbid anyone from receiving loans in our country and make bans on their credit history. However, if the court declared a person incompetent or partially incapacitated and decided to include this information in the BKI reports, you can add relevant information to it. If the bank or IRA has documentary evidence of incapacity, it also has the right to send this information to the bureau. But it is not an immediate ban on the issuance of loans or loans but only serves as a warning to creditors.
Challenging Is Easier and Faster
Previously, to correct information in the credit history, the borrower could only apply for a low amount loan. From 2021, you can do this through a bank or loan app. According to the new rules, they must notify the borrower within 15 business days that the information in the credit history is correct, and no changes will be made or make the required adjustments. The time has also been reduced by almost half – up to 8 working days. At the same time, the Central Bank recommended that banks provide an opportunity to submit applications to challenge information in the credit history in electronic form. Credit score checks do not affect the quality of history. You can request this information regularly from your bank or the websites of various bureaus to track changes and adjust your track record if necessary.
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