BKI is The concept, definition, services provided, verification, generation and processing of your credit history

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Everyone who at least once in their life applied to a bank or a microfinance organization for a loan had to deal with the work of credit bureaus. BKI is a commercial firm that collects and processes data on borrowers. Information obtained from such a company helps lenders to know if there are risks in issuing a loan to an individual. Based on the information about the client, banks make a decision to approve or refuse a consumer loan.

Credit Bureau - what is it?

Commercial organizations that consolidate information about borrowers have been operating in Russia since the early 2000s. Previously, data on payers was stored only in the archives of banks. If the client wanted to get a consumer loan, the manager had to independently calculate the possible risks for the financial institution.

With the advent of the CBI, banks were able to study the data on the borrower within 5 minutes, formed on the basis of all the obligations of the client. Information from credit bureaus includes informationcollected during the analysis of all loan agreements of the payer.

History in BKI has been preserved for 15 years. A borrower who is repeatedly in arrears on payments may be refused by lenders during the specified period.

How many credit bureaus are there in Russia?

At the end of 2017, 18 BKIs were officially registered in the Russian Federation. These are companies that have submitted information to the registry of the Central Catalog of Credit Histories.

But not all bureaus are licensed. In 2018, only 4 CBIs received the right to analyze payer data. These are National Bureau of Credit Histories JSC (NBKI), Credit Bureau Russian Standard LLC (information organization of Russian Standard Bank), United Credit Bureau CJSC (OKB) and Equifax Credit Services LLC (EKS).

How is the request made at the bureau?

To obtain information about the relationship of the borrower with creditors, banks (or MFIs) send a request to the BKI. It takes no more than 10 minutes. 9 out of 10 financial institutions have an agreement with a certain bureau that provides data promptly.

If there is no information about the client, this means that the borrower has never taken a loan or his history has been updated. For 90%, the data in different bureaus are the same, since when applying for a loan or credit card, all companies send information to several bureaus at the same time.

The largest companies are most popular with lenders, for example, BKI "Russian Standard" or OKB.

Credit bureau services - for banks or individuals?

Individuals can also check their history in BKI. The service is popular, especially among customers with delays. To find out why they do not give a loan, payers can both in the bureaus themselves and in some banks (for example, Sberbank of Russia PJSC) and microfinance organizations.

According to the Federal Law "On credit histories" of December 30, 2004 N 218-FZ, once a year a citizen can receive an extract from the bureau for free. If the report compiled by the company did not suit the client, he can re-submit a request to another organization on a commercial basis.

The cost of the service varies depending on the company. On average, ordering an extract will cost the borrower from 390 to 1190 rubles.

Certificate from credit bureaus: main sections of the document

Statements of information centers consist of several sections:

1. Information about the borrower.
2. Commitment data.
3. History of requests.

The first block of the BKI includes the client's full name, address, passport details, SNILS, contact information, information about family members, income. The most important section is obligations. Everything counts here:

• loan applications;
• current and paid loans, credit cards, mortgages;
• guarantee agreements;
• information on the total debt of the payer on the date of the request;
• delinquent contributions, early repayment, restructuring.

The last block includesdata from all banks (and from other creditors) that sent a request to the CBI, and the number of applications from the client himself.

Rating of the borrower in the credit bureau: concept, definition

Data in BCI are automatically processed and generated by specialists of the analytical department. Based on the information received, a rating of the borrower is compiled. This is an indicator that characterizes its reliability and reflects possible financial risks for the bank.

The higher the rating, the more chances the client has to approve the loan. The point system is convenient for both creditors and payers: information on the accrual/debiting of the rating is displayed in the BKI statement. The Bureau evaluates the history of the borrower, indicating a brief description.

Customers with bad credit have trouble getting loans. Depending on the number of overdue payments, banks may refuse such payers for 5-10 years.

Credibility of credit bureau data: is there any reason to doubt the results?

Bad credit history for many borrowers comes as a surprise. Clients refuse to believe that CBIs store data for years, so they demand up-to-date information.

But it is worth questioning the activities of the employees of the analytical bureau only if the borrower has evidence of an error. For example, the date of birth of the payer is incorrectly indicated in the certificate received. In large cities (Moscow, St. Petersburg, Novgorod), the number of residents whose full names completely match mayreach hundreds of people. An error in passport data or information about the borrower himself threatens to obtain information about another person.

In this case, the borrower has the right to re-send a request to the bureau to correct the questionnaire. Based on current information, the bank is not en titled to refuse the client a new application for a consumer loan.

Sometimes information in the BCI does not include information about obligations if the data update period for them is less than 2 weeks. For example, the payer repays the mortgage and orders an extract on the same day. In a certificate from the credit bureau, the mortgage agreement will be indicated as valid, since the bank has not yet transferred the information to the CBI.

Correction of the borrower's rating

A low score on a bureau statement forces borrowers to look for ways to increase it. Contrary to the opinion of some payers, BKI does not improve credit history.

It is the duty of the information body to consolidate data on an impartial basis. Bureau specialists are not en titled to change the credit history of clients for better or worse. An attempt to influence the relationship of the borrower with creditors will be regarded as data manipulation, which entails a loss of the company's reputation. If there are suspicions of deliberate violations by employees, the borrower can file a complaint against the activities of the bureau with Rospotrebnadzor or file a lawsuit with the judicial authorities.

In 5% of cases, "black" credit history is associated with bankingmistake. For example, the borrower repaid the obligations under the loan agreement on time, but the lender did not update the information in the system. As a result, the payer who repaid the debt is listed in the BKI database as a borrower with a long delay.

If the low payer rating is due to the fault of the bank, the client must contact the creditor to correct the situation. Managers will send a letter to the BKI with a request to enter new information about the borrower. The term for updating a credit history when making an adjustment is about 30 days. After the specified period, it is recommended to make a new request to the BKI to make sure the problem is resolved.