Broken Credit History - Correction Possible

Well, how can I get a loan? Is not any bank ready to give out a loan if it has a damaged credit history ?! The borrower will torment himself with endless rhetorical questions. No, getting a loan with a bad credit history is possible. But you can not count on a loan with a low interest rate .

It often happens that the borrower turns to dozens of banks wanting to get a loan with a bad credit history and receives permanent refusals.

When considering an application for a loan, a bank or a microfinance organization will necessarily want to verify to whom they issue a loan, and whether they risk their money very much. For this purpose, the bank asks the borrower for its identification data, sends it to the credit bureau, in order to understand what the risk of non-repayment of the loan for a particular person. In the credit history of an individual, information on previously issued loans, on delinquencies, or facts of transfer of a credit account to a collegiate agency is stored. Of course, if a person's credit history has been spoiled, due to his low financial discipline, then the probability of refusal is high.

But the reasons why a borrower remains with a damaged credit history can be a lot, it's illness, and dismissal or family circumstances. And the banks, as a rule, meet the borrowers, who are faced with temporary financial difficulties, and without any special difficulties they provide deferrals or so-called credit holidays. The bank may grant deferrals on the next payment, if the borrower beforehand applies to the bank. In the event of a vacation, the bank will not spoil the content of the credit history, and it will remain clean.

But, unfortunately, many borrowers are not aware of such options provided by the bank. And the borrower, without notifying the bank of temporary difficulties, gets a spoiled credit history as a result.

According to the Law on Credit Histories, a subject of credit history can appeal to a spoiled credit history. For this, it is necessary to write an application to the credit history bureau indicating which information in the history does not correspond to reality, and attach a substantiation to this statement to the application.

After the audit, the bureau will inform the applicant about the results of the audit and make appropriate changes to the previously damaged credit history.

However, if the records contained in the credit history are true and the applicant was not able to provide justifications, the credit history bureau may no longer react to the subject's statements.

In this case, correcting a bad credit history can only correct its attitude to financial obligations. The subject of a spoiled credit history can take, even if not attractive terms, a consumer loan, pay it without delays and thereby form a new record in its history, thus increasing its credit rating.