Credit history is information about loans, their full and timely repayment.
This data is provided by the Bureau in which all credit histories are stored, that is, a legal entity with a corresponding specialization. The bureau receives information not only from banks, but also from public sources, such as social networks. All facts of early debt repayment, litigation and late payments will be displayed in your history for all loans.
The bank uses an assessment of the credit history to issue you a new loan or to issue a credit card. And the success in issuing it depends on it.
In 2004, the Law “On Credit Histories” was adopted, and since 2005 it came into force. And now credit organizations, with the consent of the borrower, are obliged to provide information about his credit history to credit bureaus. A credit history is started with the consent of the client and, with written permission, is transferred to the credit bureau.
For such purposes, a central catalog was created, which contains credit histories at the Bank of Russia, and it will be used to search for similar bureaus.
According to the adopted law, it is necessary to store data on loans for 15 years. This entitles the borrower to receive a credit report once a year for free, and the rest of the times – for a fee. If the borrower disagrees with the information contained, he can, in court, fully or partially challenge the information of the credit bureau. Also, the bank does not have the authority to transfer information about the borrower without his permission.
Be that as it may, credit history is voluntary. If you do not want to issue it, then you have every right to do so. Banks also approach this issue individually.
• you can get a loan in cash or on a bank card on favorable terms if you have a positive credit history;
• reduction of the annual interest rate
Credit history information:
• Passport information;
• Certificate of the presence of an identification code;
• Information about the length of service;
• Information about marital status;
• Information about credit legal relations;
• Information about late payments;
• Information about invalid credit agreements;
• Information on tax arrears;
• Decisions of the judicial authorities regarding credit legal relations;
• Other information about the borrower that the Bureau took from public sources.
Abroad, they use an alternative method of calculating solvency – a rating.
Rating is a kind of characteristic of your reliability as a borrower. This policy is popular in the United States. The method of calculating it is shrouded in a secret of darkness, but not only earnings, but also marital status and the presence of children play a role. American citizens are worried about their rating, because those who have been following credit conditions for 7 years are provided with lower interest rates on money back, more favorable conditions for banking innovations.