What is a credit history?

A loan in a bank, that is,interest for some purpose, today has become very popular. However, there are cases when the bank refuses to issue a loan, for example, if there is a bad credit history.

What is a credit history and by whom is it compiled?

Credit history is information about howthe borrower fulfilled the obligations under previous loans. This information about individuals and legal entities is collected by a special legal entity - a credit history bureau.

By signing an agreement with the bank on taking a loan,The borrower simultaneously gives consent for the transfer of his credit history to this office. So, all actions concerning payment of payments are fixed, and as a result banks have an opportunity to get acquainted with this information before granting of the credit.

How does credit history affect the issuance of credit?

Conscientious borrowers become the best clients of the bank and may in the future receive loans on favorable terms or for a large amount.
Unfair clients can generally lose the confidence of banks and do not receive more loans in them.
The presence of a bad credit history can be a failure when going abroad.

More information on this topic can be found in the articles on our website: