Credit history is information about when and how much and in what financial-crediting institutions you have gotten or have credits and how you fulfill your credit liabilities, i.e. credit repayments.
We made such introduction because many citizens suppose that credit history is only composed of general information about the individual. Such as name, passport data, residence address and ID code, place of work, and information about liquidated debt and outstanding credits.
Why and who does need pure credit history?
First of all, the individual needs pure credit history as information is collected about him/her. The person used to apply to specialized institutions for credits, loans or short-term loans, and he/she starts to think how to create such credit history that your reputation as the borrower looks irreproachable.
Certainly, credit history is only small part of data, which is considered by the credit institutions, when they make decisions about credit lending or rejection to provide borrowings. Additionally to good credit history, the borrower should have stable income in a form of guaranteed paid stable job or income from business, collateral (depending on goals and amounts of requested money), appropriate bails (if necessary).
It is worth to say that one agency exists in Kyrgyzstan, which consolidates data on borrowers received from participants in the financial market on voluntary base. This information, as a rule, is provided based on consent of the borrower. It is the credit-informational bureau “Ishenim”, which was opened in March 2003 under financial support of EuropeAid.
What are privileges the holders of good credit history gain?
Often, good credit reputation is a key in decision-making on credit lending. If you apply to the credit institution where you have the positive credit history, you would have a number of advantages.
First, the credit institution will be glad that you again visited them. Thus, you can expect attractive suggestions and encouragements especially for you in future.
Second, package of credit documents might be less than for new borrower.
Third, period of application consideration will be shorter. Even, technically, it is unnecessary to insert your data again in computer systems.
By the way, the holder of good credit history will be offered lower interest rate under applying to the financial institute if it is anticipated by crediting conditions.
In conclusion, we would like to underline that it is crucial to keep your credit history, and, moreover, to control its reliability.