Loan products are of great importance for today's borrowers. For many, this is the only chance to make a major purchase or become the owner of their own property. But not always the bank approves the required amount. Often the reason is a bad credit history, which was damaged by the borrower in the process of fulfilling previous debt obligations. A topical issue for potential clients of financial institutions who have been denied approval of an application is where and for how long this information is stored.
The credit activity of an individual for the activities of any bank is of particular importance. Since the data contained in it gives an idea of the reliability of an individual who wants to take a loan. Before applying to a financial institution for a large loan, it is useful to first check your credit history. Especially if the potential client knows thathe had previously had problems meeting previous debt obligations. How long a credit history is updated and what this information is is discussed in this article.
The concept of credit history
In fact, it is a set of information on the basis of which bank employees decide on the possibility of issuing a loan. Includes the following data:
- Passport data of an individual and information about the banking institution where the loan was previously received.
- Loan amount.
- The period for which the provided funds are taken.
- Delayed payments and early repayment of the loan.
- Litigation between an individual and a bank.
Before moving on to the question of how quickly credit history is updated, it is worth considering its structure. This information consists of the following parts:
- General. Contains data about the institution that holds the information.
- Main. Contains complete information about the financial credit activity of a particular individual.
- Closed. Details of the banking organization and personal information about the recipient of the loan.
- Confidential. Available only to the client. Includes a list of individuals who submitted a request for reporting.
Important! The loan agreement must contain a clause that confirms the consent of the citizen todata transfer to the BCI. In the absence of consent, the bank has no right to provide the specified information.
Credit histories are conditionally divided into the following types:
- with a zero level: if the client refuses to provide information to the CBI or there is no credit activity;
- with a positive rating: the client fulfills the loan obligations on time or ahead of schedule;
- with a negative rating: the presence of delays, fines or litigation.
To whom is it provided?
The right to receive reports on the credit activity of an individual have:
- Central Bank.
- Financial institution where the client applied for a loan.
- Judicial and law enforcement as requested.
- The client himself.
Where is it stored?
Services for the collection, processing and provision of information on each specific borrower are provided by a specially authorized institution - the Credit History Bureau. It operates on the basis of a license granted by the Central Bank of the Russian Federation. The main activity is aimed at the formation and provision of reporting on credit operations.
Several such institutions can be located in one region at once, in total there are about 30 such organizations at the moment. All of them actively interact and quickly exchange data, updating information in a timely manner.
How credit history is updated at the Credit Bureaustories? The law imposes obligations on banking and other institutions to provide information about the loan issued within 10 days after the provision. Also, data on delinquencies and payments on the loan are transmitted within the specified period.
Since not all organizations transmit information consistently and on time, a citizen has the right to independently study the credit history and verify the accuracy of the data.
Most people have a misconception about how often a credit report is updated and about the importance of this information. If there were overdue payments on the last loan, then you should not think that you can hide the data by contacting another bank. Information is available to all official organizations that issue cash loans and is stored for a long period.
After how many years is credit history updated? There are the following renewal periods:
- in 10 days;
- after 3 years;
- after 10 years;
- after 15 years.
It is necessary to consider each specific option separately.
In 10 days
After drawing up and signing the loan agreement, the information is sent to the BKI division within 10 days. Similarly, data is entered for each legal transaction: making a payment, early repayment.
Every 3 years
Unscrupulous payers who do not know exactly when the credit history is updated, believing thatinformation changes no more than 1 time in 3 years, they try to present themselves as a responsible borrower. To do this, people borrow small amounts of money and fulfill their debt obligations ahead of schedule. As a result of such activities, the citizen hopes to receive a loan for a large amount.
This misconception arose due to the fact that when considering the solvency of a client, bank employees are limited to the last 3 years in the presence of a large activity of credit operations. In a situation where there is little data for the specified time, the verification period is extended by several more years.
In 10 or 15 years
How long does it take to update a credit history by law? According to the legislation, a period of 15 years was provided for the storage of such data. But due to the amendments that were made literally 2 years ago, the period was reduced by 5 years. Now credit history is stored no longer than 10 years from the date of the last entry.
Pay attention! The purchase of goods, including household appliances in installments, is also displayed in the data.
Each update of information resets the time limit and the countdown starts again.
How do I know the content?
The law regulates not only when a credit history is updated, but also provides for the right of a citizen to familiarize himself with the reporting of transactions. Often this information is needed for borrowers, for example, before making a decision to apply for a mortgage. To get information you needrefer to the Central catalog of credit histories, where they will provide data on the regional credit bureau, which generates a report on a specific individual.
Next, the person needs to go to the official website of the Central Bank, where you will need to fill out a special form. This is done in order to obtain information of interest for free. But in order to send an application, you must enter the code that is provided by the local division of the BKI. You can also find out the data by contacting the relevant BKI in person. Information is provided within 10 days of application submission.
Most often, citizens are interested in the question of when the credit history is updated in order to remove negative information. Therefore, some try to request data as often as possible.
The client can use the right to receive information free of charge only once a year. If you reapply, you will need to pay. Depending on the region of residence, the fee for providing the service can reach 2,000 rubles.
Actions when an error is detected
How and how much is credit history updated in case of an error? If the borrower was denied a loan based on erroneous data on the previous loan provided by the financial institution, then he has the right to challenge the false information.
Algorithm of actions:
- First of all, it is necessary to determine the CBI, which provides information on the loan.
- When handlingidentity card, the applicant draws up a claim in writing.
- BKI employees send a request to the organization that provided false data.
Bank specialists consider the request within a month. If an error is found, corrections are made and the information is re-provided. In a situation where the organization that issued the loan refuses to correct the data, and the client is sure that the information needs to be changed, you should go to court. If there are documents confirming the position of the recipient of the loan, the judicial authority imposes an obligation on the bank to correct the data.
Customers are encouraged to check their credit history from time to time in order to avoid being denied a loan in the future. If the rating has deteriorated due to any reason, then the situation can be improved by credit activity over the next 3 years.
To do this, you need to periodically take loans for a small amount and repay them on time. You can also buy goods on credit. Regular payments on payments have a positive effect on the formation of a client's credit history.
Even if a citizen is sure of a positive credit history rating, there is a possibility of providing erroneous information by a financial institution. Therefore, it is undesirable to ignore periodic data validation.
If the client does not want to take small loans, then he will have to wait 10 years, until the day when the credit history is updated.