How to make a credit history? How long is a credit history kept at a credit bureau?

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

Credit history is represented by information about a specific person as a borrower. It is formed during the execution and repayment of various loans and borrowings. This procedure is handled by the credit bureau. Each credit institution has access to this information, so if a person has a damaged reputation, then he will not be able to take advantage of the various unique offers of banks. It will not be given loans, and will only be offered high interest rates and small amounts of funds. Therefore, many negligent borrowers have a question about how to make a positive credit history. There are a few tricks and unusual ways to do this, but the reputation repair process is considered long and complicated.

The concept of credit history

She is represented by a special dossier, which is filed on a certain person. It opens with the very first loan. It contains information about when the loans were issued, whether they were repaid on time, and also what problems arose when depositing funds. If a person is notcoped with payments or violated other clauses of the loan agreement, then his credit history will be negative.

In the database of credit histories, information about each person is stored for 15 years. A dossier is formed during the execution of the very first loan. All information is included in chronological order, so you can improve the story by applying for new loans that are repaid by the citizen on time or ahead of schedule.

Features of the BCI

It is to the credit bureaus that information about each negligent borrower is sent. The activities of such an organization are controlled by the Central Bank. The dossier contains a lot of information about each person. This data includes:

• personal data of a citizen, provided by his full name, passport data and date of birth;
• history of repayment of past loans;
• it is noted which amounts were issued earlier;
• provides information on current loans;
• all overdue payments are indicated;
• lists lawsuits filed against the debtor;
• loan refusals are given.

Additionally, in this dossier you can get information about all creditors who previously issued a loan to this borrower. Any credit institution or individual can contact the bank of credit histories.

Appearance of the dossier

Credit history in almost every BCI is drawn up in a standard way. It is divided into three parts, each of which containsup-to-date information. When completing this dossier, the following rules are taken into account:

• the title page contains personal information about a particular citizen, provided by his full name, TIN, SNILS, marital status, place of employment and education;
• the main block contains information about which loans were previously issued by a citizen, which clauses of loan agreements were violated, and which loans are currently issued;
• the third section is closed, so information from it is offered only to a direct citizen, so he can find out which credit organizations have submitted a request to study his credit history.

If a person regularly violates the basic requirements of loan agreements, therefore, does not pay payments on time or otherwise does not follow the requirements of banks, then his reputation as a borrower deteriorates. This leads to the fact that he cannot get a loan on favorable terms. Therefore, the question arises, how to make a credit history positive. The process can be done in many ways, but in any case, it takes a very long time and also requires a significant investment of effort.

Reasons for worsening CI

Credit history deteriorates for various reasons. These include:

• the appearance of regular and small delays that do not exceed 30 days in duration, and some banks under such conditions do not send information to the CBI, but many institutions even with a delay of several daysintentionally worsen the reputation of the borrower;
• frequent and long delays, which lead not only to a deterioration in the CI, but also to the accrual of fines and pen alties;
• refusal to fulfill obligations under the loan agreement;
• judgment against a borrower who cannot or does not want to repay a debt owed to a lending institution;
• errors in the work of banking organizations;
• failures in banking software.

Some people experience that their credit history is deteriorating for no good reason. This may be the result of various technical failures or errors made by bank employees. Under such conditions, it is advisable to file a claim with the bank. After considering this application and conducting a check, it is highly likely that the staff of the institution will send a refutation to the BKI.

How to check?

Before you fix the bad reputation of the borrower, you should make sure that it is negative. How to make a request to the credit bureau? To do this, the following rules are taken into account:

• once a year every citizen can get information from the BCI free of charge;
• You can apply on your own, for which it is important to choose the right bureau located at the place of registration of the borrower;
• the application is submitted during a personal visit to the institution or on its official website;
• you can get information on how to correctly submit a request from the direct employees of the BCI;
• a report is issued in paper form in the hands of a citizen or sent in electronic form to the email address specified in the application;
• after studying this report, you can understand what problems exist in the CI of a particular citizen.

If the dossier contains any contradictory or completely unreliable data, then you need to contact the bank that transmitted this information in order to make adjustments to the history. If a credit institution refuses to make corrections based on their mistakes, then how to make a positive credit history? To do this, you will have to challenge the bank's decision in court, but only on condition that the borrower is really sure that he is right. Based on the court decision, the necessary corrections will be made to the bank of credit histories.

Basic free ways to fix your reputation

There are several ways to improve your reputation. How to make a good credit history quickly and for free? For this, the following recommendations are taken into account:

• all existing debts are paid off, not only to various credit institutions, but also to utilities or other creditors, and it is also advisable to ask the employees of these institutions to enter the relevant information in the BKI;
• if a citizen has any financial problems, he can ask the bank for restructuring in order to avoid delays in the CI;
• loan processing in small banks or MFIs, and these loans must be repaidon time or ahead of schedule, which will certainly be indicated in the dossier;
• purchase of various goods in installments, but you need to pay for them without any delay;
• registration of small loans transferred to bank cards.

Before you make a good credit history, you should make sure that you are in good financial condition so that when applying for additional small loans, there will be no further delays, otherwise this will lead to a deterioration in the person's reputation.

Can illegal methods be used?

On the Internet, there are often offers to fix a credit history for money. Many people make requests: “I want to fix my credit history, how can I do this?” They often become victims of scammers who offer illegal methods to improve the borrower's reputation. The following methods are commonly used for this:

• hacking the BKI database, but you will have to pay a significant amount of money for this, so if it is proposed to make changes to the dossier in this way for a small fee, then you should not fall for the tricks of scammers;
• giving a bribe to an employee of the BCI, but even if you really manage to contact an employee of this institution, it is likely that he will take the money, but will not take any action to improve the person's credit history;
• forgery of documents, assuming that the borrower receives an extract from allegedly his CI, which contains only positive information, after which this document canbe given to potential creditors, but using this documentation is an illegal process.

If a person is interested in how to make a credit history positive, then it is advisable to focus only on legal methods.

Applying small loans

If a person is thinking about how to form a credit history so that it is positive, then the best choice for this would be to issue small loans. They can be obtained from MFIs or standard banking institutions.

The most frequently issued loans to the card. It is necessary to repay such loans strictly on the basis of the payment schedule, so even small delays should not be allowed. You can even not spend the funds received from a credit institution, directing them to repay this loan.

If you deposit funds early, you can save money on interest. A credit card usually does not exceed 50 thousand rubles in size. When applying for such small loans, many institutions do not even check the borrower's credit history, so the probability of being rejected is low.

Issue a credit or installment card

If a citizen regularly uses a credit card or an installment card, this will certainly be reflected in his dossier. This will lead to a gradual improvement in credit history. You can apply for a card at any suitable bank. An application for plastic can be submitted at the branch of the selected institution on the organization's website.

To really applycredit card or other similar card had a positive effect on the person's CI, there should not be any delays or other problems. Otherwise, the reputation of the borrower may worsen altogether.

What to do if CI is hopelessly damaged?

If a person has not paid large loans for a long time, and also sued banking institutions, then his CI will be completely damaged, so it is almost impossible to fix it. Under such conditions, it is necessary to wait 15 years, after which the information will be eliminated from the BKI.

Another solution to this problem is the execution of small loans in various MFIs that do not check the credit history of their borrowers. But even with the execution and repayment of a huge number of small loans, it will still not be possible to count on obtaining a mortgage, car loan or other large loan in the next 15 years. Even small consumer loans will be issued at high interest rates and with the involvement of guarantors.

How to maintain a good reputation?

Everyone should know not only how to make a positive credit history, but also how to keep it. To do this, it is important to strictly follow the requirements of loan agreements. Delays or other problems are not allowed.

It is advisable to check the quality of your credit history annually. If it is worsened due to banking errors, then it is necessary to contact the institutions with a request to make changes to the BCI.

Conclusion

Credit history checkedby almost every banking institution before issuing a loan to any borrower. It is presented in the form of a dossier, which contains information about all previously received loans, delinquencies and other problems. If a person has bad CI, then he can correct it in various ways.

It is not recommended to use any fraudulent schemes or dubious offers of swindlers for these purposes. You can only issue small loans that are repaid on time or ahead of schedule. Additionally, after 15 years, information on various delays will be removed from the dossier.