Anyone understands that with a bad credit history you will not go far, you will not get a loan at a bank. Everything can happen in life: from a typical dismissal at work to a lack of funds in the family budget. And this always affects the payment of an existing loan. You can visit the homepage for the best understanding of the same now.
Some people made a delay of a day, others did not repay the loan for a month, all the information goes without limit to the Bureau of Credit Histories (hereinafter referred to as BCI). And every time a financial institution considers the application of the next client, it turns to the bureau to verify that the person is in compliance with the payment discipline. And if delays took place, then most often a failure follows.
Bad credit history: why it happened
Credit history can go bad for various reasons. Below we will consider the most popular of them:
- Delay in payment of regular payments of one day or more
- There is no way to repay a loan
- Constant delays in paying a loan
- An error crept into the credit history
Some institutions do not like clients who repay their loans ahead of schedule. This steals part of their profit in the form of interest. That is why, if such information is reflected in the BCI dossier, then many of them will simply refuse to issue a loan.
Credit status: a secret for the bank or not
A credit bureau works like a clock. They collect information about borrowers throughout Russia, and then provide data on the basis of the Federal Law of the Russian Federation “On Credit Histories”. But it is precisely such data that can get to the bank only after the full consent of the borrower. And there is a little trick. It is at the stage of filling out an application for a loan that the bank’s client puts that notorious signature where it gives consent to the processing of all data, as well as a request to the BKI.
Usually this does not look like a separate agreement with the bank on some sheet. It can be a tick, a signature. And if a person does not tick off by his consent, then in 99.9% the bank will refuse to issue a loan. This is a paradox, but such is the practice.
Thus, we can draw a disappointing conclusion that having a “soaked” credit history, applying to another bank in order to get a new loan, a personal CI will be necessarily reviewed and analyzed. And after this information a verdict will be issued – to give money to such a client or not.
In general, banks all react differently to the credit histories of new customers. If, for example, the borrower’s CI is spoiled (there are delays in payment for a period of up to 7 days, not due to a person’s fault), then banks usually meet with a loan. In case of a bad credit history, a loan may be refused or agreed upon on special conditions: high interest rate, small loan amount, provision of a solvent guarantor, short loan term, etc.
The bank’s response also depends on what type of loan a person wants to receive. If the risks for the bank are high, then he is unlikely to agree to lend to a person with a negative credit history. Moreover, each bank has its own assessment of the solvency of the client. If for some institutions the “quality assessment” of the borrower is quite high, then others can easily give out a loan.