Does the credit history affect the receipt of a loan and is it obligatory to be a bona fide borrower?

With the concept of "credit history" today, it should be familiar even those citizens who have never before been borrowers of financial institutions. But not everyone understands the essence of this concept, and as a consequence, in the country there are always signs of irresponsible attitude to monetary obligations. Does the credit history affect the loan? We will deal with this issue once and for all.

What is a credit history and BCI?

To begin with, it is necessary to comprehend the very essence of the concept of "borrower's history". Experts note that about half of the country's population have heard this term, and more than once, but do not understand its meaning and purpose of existence.

The credit history is the systematized data on the client of the bank that has ever resorted to credit services. The data indicate the name. Borrower, his contacts, document numbers and other personal information, as well as information on the timeliness of making payments on the loan.

Data generated in the form of a personal card are transferred by the bank to a specialized structure - the National Bureau of Credit Histories. The task of the NBKI is to store this information and promptly make changes when new information arrives from the lender. All data received at one time or another is accumulated and provided at the request of banks or the borrower.

Types of credit histories

Before you ask yourself the question of whether a credit history influences credit, it's worth examining the types of borrower stories. Unlike the widespread opinion, credit histories are divided not into 2 types - positive and negative, but for as many as four.

1. The ideal credit history is the data on a borrower who has not allowed a single delay in loans, both current and extinguished. Such a client is a find for the financial institution. Banks are ready to provide such a borrower with a loan without certificates and at a reduced rate, as it guarantees minimum risks of non-return of debt.

2. A good credit history is also a good option for a financial institution. This means that people allowed one-time or irregular payment gaps for one or several days. So, in some organizations, a borrower with delinquencies on repaid loans in any bank for up to a month can be recognized as a good faith.

3. Bad credit history. The delay, which lasts 5-6 days or more, and also arises regularly - this is already an occasion for doubts of any bank. For some particularly demanding financial institutions, the history of the borrower will be considered to be spoiled, which had a payment failure for a period of 1 to 30 days, with the loan repaid in full in a timely manner.

4. Bad credit history is the most neglected option. This includes bad loans, which the bank is ready to transfer to third parties, that is, collection agencies. As a rule, a loan is considered hopeless if there is a missed payment for a period of 90 days. The question of obtaining a loan in this case is no longer worth it - it's simply impossible.

Is it possible to get a loan with a damaged credit history?

Technically, a loan can be obtained from an unscrupulous borrower. The NBKI has several structural subdivisions, so information is not always updated promptly or in full. Thus, it is not uncommon for a creditor to become aware of not all the flaws of a potential borrower.

Does the credit history affect the receipt of a loan to buy a car or an apartment if the borrower is found unfair? Of course, in such cases, it is not necessary to rely on the leniency of the bank or negligent verification of NBKI data. Mortgage and car loans are major financial transactions, and in the current economic situation banks are unlikely to take such a risk.

Who issues loans to borrowers with a damaged history?

Sometimes the bank consciously goes to transactions with an unscrupulous borrower or principally draws up a loan without checking the credit history. This happens when a financial institution is interested in promoting a new service and provides small amounts to all customers. Interest rates and other conditions in such cases are not considered to be the most profitable.

This also happens when you open a new bank. In an effort to form a client base, the lender is loyal to every person who seeks help without looking back at possible previous sins.

Some citizens in their search for a financial institution that will cooperate with an unscrupulous client pay their attention to loans. The credit history for microfinance organizations does not matter, but they compensate for their risks of non-repayment by predatory interest rates and commissions. In addition, such creditors are considered to be semi-legal, and sometimes even become fraudsters.

Lack of credit history is good?

It turns out that the bank's decision can be affected not only by a spoiled or positive credit history, but also by its absence. If the future borrower has never previously made loans and did not make payments, then even the availability of income confirmation can not be a guarantee of his responsibility and efficiency. This is also a risky client for the bank.

Therefore, the lack of credit history in the credit institution can be a decisive factor for refusal. How to be? Experts advise starting to form a story. To do this, you need to issue a small loan without a certificate. If you comply with the requirements of the bank, the customer is not guaranteed to be refused.

Finally

Does the credit history affect the loan? Of course! But the fact is that to influence the fate of the borrower his story can be both positive and negative. A conscientious person has the right to rely on a loyal attitude of the bank and favorable conditions. The borrower, who has ruined his history, can hardly hope for the leniency of a reliable financial organization, and indeed any legal creditor.