All about credit history

Credit history includes information on which you can track the performance of the borrower of its obligations on loans to banks. The credit history is kept in a special organization the credit history bureau.

Upon receipt of an application for a loan, specialists of any bank are entitled to contact the bureau, familiarize themselves with the borrower’s history and subsequently use the obtained information to analyze the integrity and reliability of the client who applied. In case of improper performance by the borrower of its obligations, for example, systematic delay in payments, the bank is more likely to refuse a potential borrower in processing a loan.

A credit history is created only with the consent of the borrower, which can then be confirmed (for example, by submitting it in writing with the borrower’s signature). This rule also applies to banks wishing to familiarize themselves with the credit history of their potential customer.

A specialist from the bank will receive a response from the bureau only upon the consent of the borrower. Simply put, a bank or any other financial institution can enter information about the performance of obligations by the borrower, as well as receive only with the consent of the borrower.

The borrower may refuse to consent to the admission of the bank to information about its credit history, stored in the credit bureaus. This should not affect the decision of the bank to grant a loan. Nevertheless, this clause is usually prescribed in a standard contract between the bank and the borrower, which excludes the possibility of changing it, which means that by signing it, the borrower gives his consent to the bank for admission to the credit history and its changes.

Any borrower (subject) can obtain information on his credit history without giving reasons at any time once a year free of charge (other applications are paid) by contacting the credit bureau directly in accordance with Article 8. To do this, you must present a passport and fill out a special application.