A positive credit history in most cases is a guarantee of approval of an application for receiving money from a bank. Even if you don’t have a stable income, you have a chance to get a loan. If you have a bad credit history, then you automatically end up on the so-called “black list”.

Formation of a credit history

According to the law Russian Federation all information about borrowers is collected into a single database. A special credit history bureau collects and stores data. Each bank sends information about its clients there. And he also has the opportunity to request it about any borrower.

The following must be remembered:

• Changing or correcting history is quite difficult (although not impossible);
• Data is stored for 15 years, so don't expect to be "forgotten";
• When changing your passport, place of residence, last name, etc., the history is not “reset”;
• Any bank and any credit organization can get access to information.

Credit history contains not only negative, but also positive points. In fact, it is a kind of valuable asset for the borrower. Having earned a good reputation, you can count on more profitable terms lending. Therefore, you should take care of the “purity” of your credit history.

Checking status

Not only the bank, but also the borrower himself has the right to access information. You can do this in the following ways:

• Send a request to "your" credit institution. Once a year, everyone can receive information for free;
• Use a paid service at any bank or any bureau.

There are several organizations involved in collecting and storing information about borrowers. This complicates matters somewhat. You can find out exactly where your credit history is stored on the Central Bank website. There is a special section there - “obtaining information about the Credit History Bureau”.

Credit history information is provided in the form of a three-part report. The title part contains personal information about the borrower. The main one includes information about loans and their repayment. The last one contains information about the lender.

Why is it worth checking your CI?

It is useful to have a credit history on hand. Especially if there is a trial with the bank or you need to challenge the bank’s decision when refusing a loan.

Correcting your credit history

If you have a bad credit history, it becomes difficult to take out a loan. It is necessary to take measures to correct the situation.

If you can prove that there are errors in your credit history, they will correct it for you. Such situations happen. For example, the bank did not credit the borrower’s contribution on time. If the delays arose through your fault, then no one will correct anything.

So how to fix your credit history in this case?

A person must prove his trustworthiness. There are several methods you can use:

• Prepare certificates of timely loan repayments from other banks;
• Demonstrate that there are no debts on utility bills;
• Provide information about a new job with a stable pay.

In this case, even timely paid alimony and fines to the traffic police help. The most important thing is to achieve negotiations with the bank. In other words, you must prove your worth and reliability.

Everyone who has contacted a bank at least once has a credit history. This dossier consists of several sections, each of which contains information about the person’s personal data and his financial transactions. A number of borrowers have poor data. This happened due to late payments or a bank error.

Contents of the dossier:

• passport details, including registration address;
• financial obligations;
• changes in terms of contracts;
• payment schedule and information on its execution;
• court decisions on debt collection.

Future borrowers are noticeably worried when it comes to applying to the BKI. The unrest is due to the fact that for a citizen at a certain stage of life it is important to receive money on time. For everything to go well, you need to remember that any illegal actions will be detected during the first check and then the credit history will be damaged by the client’s actions.

Banks also make mistakes, for which the borrower then pays. Common ones include incorrectly entered data when filling out the form, incorrectly indicated payment amounts, and incorrectly formed payment dates.

When fulfilling obligations, a bad credit history will not be formed. The exception will be system errors that are found when independently studying the data in the BKI database.

Borrowers and banks must be guided by the law and contract when cooperating. If payments are not made on time or payments are regularly delayed, the client may experience problems due to which he will be blacklisted.

The main reasons for a bad credit history:

• regular violation of payment terms ranging from five days to a month or more;
• complete lack of payments and court decisions to collect debts.

Considering these criteria, borrowers may place themselves in the first group when they have ever been late on a payment by a week. However, there are those who delayed payment for a month and the banks sent claims, and then everything returned to normal.

When applying for a loan or mortgage, a citizen undergoes verification of the information provided. These are personal data, property status, place of work with official income.

If the borrower assumes obligations and begins to regularly be late with payments or refuses to pay at all, the bank goes to court.

Lenders will not contact a client who is on a blacklist or has late payments.

Consequences:

• refusal to provide a loan;
• inflated interest rate;
• minimum contract period.

Is it really possible that they won’t get a job because of a bad credit history?

Bad data in the BKI can have a bad impact on the borrower’s entire life, because this information is available to banks and employers.

Starting in the summer of 2015, each employer will have the right to become familiar with the credit history of its employees or job applicants.

Reasons why you can do this:

• the applicant for the position applies for a place in the accounting department, will have access to material assets and will be responsible for them;
• the employee is suspected of theft;
• an official refusal must be issued on the basis of the applicant’s unreliability.

If they don’t hire you, you can contact the bank where the loan was last issued with a request to show information from the BKI. With its help, you will be able to understand how to act and where to go to make adjustments for valid reasons.

Can the data be reset after several years?

When a bank wants to know something, it contacts one of the bureaus. There are about 19 of them around the country and sometimes they contain different information.

Debtors develop a negative history and are interested in the time of its existence. Don't wait for it to reset. It will not happen. Firstly, the data storage period is 15 years. During this period, the borrower will take out loans and during these periods the storage period will constantly increase by another 15 years.

The guarantor will also be asked what his credit history is.

An individual can be either the main borrower or the guarantor.

The bank has a number of requirements for guarantors. They relate to income level, absence of other obligations, absence of bad credit history.

Its presence will indicate that the person is irresponsible about his obligations, and therefore cannot be responsible for the debts of the person for whom he is guaranteeing.

Therefore, such a guarantor will become a reason for refusing to provide a loan.

So, you needed a loan. Having been refused by one bank, you went to another, but there you were unsuccessful. What's the problem? It would seem that you have a certificate of income, and the required amount is not exorbitant. People who have a bad credit history most often face such problems. What does it mean? It's very simple: at some stage in your life you refused to repay the loan or regularly delayed payments.

For banks, a client's credit history is one of the most important criteria. And if you have established yourself as an irresponsible borrower, it will be quite difficult to correct your negative reputation. After all, the bank is not at all interested in cooperating with those people who are prone to violating the terms of the contract. In fact, your life circumstances are practically irrelevant to them. Much more important is how reliable a borrower you show yourself to be.

How is a bad credit history formed? There are several disorders that can contribute to this:

• Complete non-repayment of loan funds (this violation is the most serious, and in the future you should not count on a positive loan decision at all).
• Repeated delay in payments for a period of 5 to 35 days or more (moderate violation).
• One-time late payment of less than 5 days.

As for the last point, it is not considered a violation as such. After all, situations are quite common when a borrower deposits funds close to the payment deadline, and they simply do not have time to reach the bank in the required time. Almost no one pays attention to such little things. If delays of less than 5 days are regular, your credit history cannot be called ideal. However, most banks will not see any serious reason for refusal.

If payments are overdue for a period of five to 35 days, this is already a bad credit history. However, if the debt has been paid one way or another, the bank may subsequently approve your application for a new loan.

Clients who have not repaid loans at all in the past are not even considered by banks - they are immediately rejected.

However, a person who has always faithfully paid the debt to the bank can also have a bad credit history. Obstacles to receiving funds can be legal proceedings, or even such a trifle as a debt to a neighbor.

How to fix the situation?

Many people are interested in where they can find such opportunities, of course, they can. However, it is unlikely that you will be able to cooperate with official structures. And you will have to pay for it. Therefore, it is better to think about how to correct your credit history (or rather, improve it).

You can get a cash loan with a bad credit history from special services, however, as a rule, you have to pay for such pleasure with exorbitant interest payments.

Getting a loan with a bad credit history is becoming more and more difficult today. The fact is that banks check the credit history of each borrower and, based on the data received, make a conclusion about whether the loan should be issued or not.

First of all, it’s worth understanding what a credit history actually is? Credit history refers to the borrower’s past loan experience, frequency and timeliness of payments, and other data. Moreover, each bank independently assesses how significant these payments or delays are.

In this case, a completely logical question arises: where does the bank find out such information? Do banks really exchange information about issuing deputies and how legal is this?

Of course not. There are special credit bureaus that collect information about lending, process it and store it. And most importantly, there is nothing illegal here. After all, when filling out a loan application, we consciously consent to the processing of our personal data.

What is a credit report, credit score and credit history?

What a credit history is was discussed earlier. Based on all indicators of payments and arrears, the bank awards a credit rating score.

So, the credit report includes all the information regarding the borrower. Three blocks of information can be distinguished.

• The first block is dedicated to personal information. That is, this is your full name, place of work, place of residence, marital status. If the borrower is entity, then his card will contain TIN, BIC, OGRN, and other important information.
• The second block is devoted to the obligations themselves. The loan term, amount, debt repayment procedure, overdue period, etc. are indicated here.
• And finally, the third block is dedicated directly to creditors. That is, information about those who issued the loan is written down here.

Can I get a credit report myself?

Since a credit report contains important information, obtaining a credit report about a particular borrower is possible only with his consent.

If the borrower himself expressed a desire to receive information about his credit history. Then he can submit an application to one of the organizations to obtain such information.

It should also be noted that the credit report is stored in the credit history bureau for no more than 15 years. Every year, any citizen can apply to receive information about their credit history. However, if such a report is required more than once a year, you will have to pay for the bureau's services.

What does bad credit history mean?

• Delinquency on loan obligations. If you closed the loan with a delay of several days or even worse, months, then this is already considered a reason for prohibiting the issuance of a loan next time and damaging your credit history;
• Inability to repay a loan obligation. There are all sorts of situations in life, and cases of bankruptcy of individuals are very common. However, if you are unable to pay off your existing obligations, in addition to other relevant consequences, you will end up with a very bad credit history;
• Constant delays in payments. This situation also occurs very often. When payments are received regularly, but late, even on the same day. Of course, this is not critical, but it is not good either;
• Operator error. It occurs very rarely, but still the human factor plays a role. In this case, there is nothing left to do but submit a request to the credit history bureau to correct the information. This situation may also arise due to a failure of the payment system. When you paid on time, but for some reason the money reached the bank much later.

How to get a loan if your credit history is bad?

So, the easiest way to solve this problem is to improve your credit history. That is, all debts must be paid off. This is the simplest and at the same time the most effective way. After all, this is the only way to gain the trust of the bank.

If this is not possible, then you can offer the bank collateral in the form of movable and immovable property. When a bank issues money as collateral, it essentially risks nothing and, if payment is refused, it will receive your property.

When this option suits you, you can contact new banks that have recently opened. They rarely check credit histories in order to build a customer base and attract consumers.

What if you try to bypass the banking system?

Today there are lending options, but not in banks, but in so-called microfinance organizations. Such companies issue loans upon presentation of only a passport. However, the disadvantage of this method is high interest rates, which are paid in such organizations.

Another way is to conclude a loan agreement with a private person. Today on the Internet you can find many offers from “kind people” who offer their assistance in lending. However, you should not mess with such people.

Firstly, your financial literacy may be so low that before you know it, you will be fooled. By the way, there, on the Internet, you can find a lot of examples of fraud in such cases.

Credit cards

A credit card is another option for receiving borrowed money. The whole point is that credit cards Banks give out loans much more readily than cash loans. This is primarily due to the fact that the debt can simply be taken and withdrawn from the card, and a large percentage can be charged on the minus amount. And if the borrower also has in this bank debit card, then everything is quite simple. The bank will simply freeze the account.

It should be noted that the bank has the right to carry out any operations with your money and accounts only by court decision.

Credit broker

A credit broker is individual, which helps with getting a loan with a bad credit history. It is this person who has information about which bureau a particular bank works with. How this or that bank treats overdue payments, and so on. However, of course, such consultation is not free.

It is best to contact those brokers who charge a fee if you are 100% successful in obtaining a loan.

"Credit Doctor"

Since during the financial crisis many citizens ruined their credit history, banks decided to make money on this. Today, some banks have re-lending programs under favorable interest rate. In this case, you can combine all your loans into one big one.

conclusions

Thus, it is still possible to take out a loan with a bad credit history. Moreover, you don’t need any special financial knowledge here. You just need to choose the most suitable option for yourself. In general, it is best not to spoil your credit history and make loan payments on time. This way the loan will be repaid and the history will be in perfect order.