Credit history of the borrower – it is the whole information on client, which is accumulated at the credit-informational bureau “Ishenim” for many years. It is necessary to state out that consent of the client in written form is required in order to submit data on client in the bureau. Such commitment, in its turn, provides right to the borrower to inquire information about himself/herself in bureau “Ishenim”.
Credit history is reputation of the client at the credit market, which is composed of following information, and it can tell about credit liabilities of the borrower:
• when and under which conditions the client received the credit;
• were there any delinquencies and reasons;
• any pre-term payments and any changes in payment scheme, for example, restructuring;
• are any credits where the borrower acts as the warranty;
• and other information on fulfillment of credit liabilities by the borrower.
Why is credit history important?
Positive credit history is one of key criteria under decision made by the credit institutions regarding crediting. In other words, it is quick, quality and easy access to credit resources for development.
Consequences of poor credit history
Negative credit history is formed by such factors as evasion, untimely credit repayment, incomplete information on financial status of the borrower. We have to remember that poor credit history can block access of the clients to transparent and official sources of resources for development.
Who does form credit history of the client?
The client and financial institution form credit history; actually they conclude agreement on partnership. You have to remember that it is mutually responsible and mutually beneficial process demanding sustainable development. Therefore, the clients have to contact their credit institutions and find out joint solutions is any questions or problems occur regarding credit service.