One client may have delays with a high salary, the other may neatly pay off payments with modest income. Therefore, today financiers first of all ask not a certificate of income, but a credit history of the applicant. She is the very source that will objectively tell how a person fulfills the duties of a borrower.
It is important to keep the CI in good condition so as not to receive rejections from credit institutions.
What can you learn from CI
First of all, the lender is interested in whether the client has outstanding loans. If he has an old debt, then the negligent borrower will be denied the request. And the manager learns about this moment precisely from the CI of the citizen, requesting a document in the appropriate bureau.
History contains all the information about previous loans: when they were issued, how they were repaid, whether the person continues to pay the loan. Here you can find specific figures on the size and amount of repaid monthly payments, along with commissions and penalties. There is also data on debts — past and present. Even information about guarantors is recorded in history.
Based on this information, the lender makes a final decision. Therefore, the client needs to analyze his CI in advance and find out about its current state. Having calculated the negative aspects, a person must eliminate the mistakes made in order to increase the chances of getting a loan. For example, pay overdue bills.
How this document was born
CI is a product of the collective labor of banks, MFIs and consumer cooperatives. It includes any detail related to lending to the borrower.
A credit institution asks a citizen who has applied for money to fill out a questionnaire.
Based on her data, the manager sends a request to the BCH and asks for the client’s credit history.
After carefully studying this document, the creditor issues his verdict. He informs about his decision not only the applicant himself, but also the bureau. BKI, in turn, enters this information into the document.
A good story is more promising than a bad one
The more positive entries in the CI, the higher the level of the borrower’s creditworthiness. This means that financiers will quickly approve the application of such a client. Moreover, he can count on a loan with favorable conditions: low interest rates, requiring no collateral or guarantor.
CI becomes positive when the borrower complies with the clauses of the contract strictly. Makes monthly deductions without delay, therefore, to pay off the entire debt on time. A responsible client does not have any debts to other organizations. It is also important to have an official source of income.
A history with a predominance of negative records reduces the chances of getting good from creditors. The applicant is likely to receive unpleasant answers: refusal or ban on lending for a while.
The borrower spoils the CI with loan delinquencies, non-payments on other monetary obligations. Litigation with creditors and surety harm him. It is bad when the credit card balance is kept at zero for a long time, indicating financial difficulties of the holder. Early repayment of a loan without prior notification of the lender is not encouraged.
It should be noted that creditors have different requirements. Banks choose a borrower more carefully than MFIs or consumer cooperatives.
Periodic CI checking is a good habit
Regular monitoring of your own CI is useful in helping to identify undeserved negative entries. For example, there are times when the creditor records other people’s information in the history or does not send information about the payment at all.
The CI check is also good in that it helps the borrower not to forget about their financial obligations. And he also takes good care of his own budgetary funds, which he also needs for the timely repayment of loan obligations.
