How to fix your credit history: useful tips

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

Each person applying for bank loans has his own unique credit history. It can be positive, neutral or negative. With its help, banks learn how responsible and solvent potential borrowers are. It is formed on the basis of how responsibly a person approaches the repayment of existing loans. If he has delays on the loan, this will certainly lead to a deterioration in his reputation as a borrower.

Often, many people have a question about how to fix a credit history. This process is considered complex and takes a lot of time. At the same time, it will not be possible to reset the credit history by replacing the passport or performing other similar actions.

Where is the information?

Information about the credit history of each borrower is contained in special credit bureaus. They are located in every city. The data is sent directly by the banks after the occurrence of delays. By default, information about delays is sent if payments on the loan are not made within one month,therefore, a few days of delay cannot affect the reputation of the borrower.

Why does credit history deteriorate?

Deterioration of this indicator may be due to various reasons. Before you fix a damaged credit history, you should figure out why it became negative.

This is usually associated with the following situations:

• minor systematic violations of the terms of the loan agreement;
• frequent delays exceeding one month, and lenders are not interested in what financial problems borrowers may have;
• citizen's refusal to return funds to the bank, which leads not only to a deterioration in his reputation, but also to the fact that the bank tries to collect funds in various ways, for which it can seek help from collectors or file a lawsuit;
• the presence of debts for housing and communal services, alimony or other payments affects the possibility of obtaining a profitable loan at any bank.

Employees of any banking institution have access to databases of different credit institutions, so at any time they can find out what the credit history of a particular borrower is. If past dues are identified, credit will be denied.

How to know your CI?

Initially, you should find out if the citizen really has a bad credit history. How to fix it, you have to decide already with the information. For information, it is advisable to contact the BKI directly. For this, an application is submitted, andinformation will require a fee set by each institution.

Additionally, you can contact the Central Bank, which also contains the CI catalog. On the official resource once a year, information is provided completely free of charge. To do this, you must specify your passport details and fill out an application.

How can you improve your reputation?

If a person has a bad reputation as a borrower, he will not be able to count on getting a large loan on favorable terms. Many are interested in the question of how you can fix your credit history. This process is considered long, difficult, and often completely inconclusive.

In order for banks to stop considering a citizen's application with suspicion, it is necessary to convince them of their solvency and responsibility. To do this, it is advisable to issue several small loans in MFIs or banking institutions. Often, the information that a person regularly defaults on loans is completely erroneous. In this case, you can force BTI employees to make changes to their database. This can be done by submitting the relevant application to the institution or through the court.

Applying microloans

This method is used by citizens quite often. This is especially interesting for people who want to know how to fix a credit history quickly. Various MFIs provide small loans without examining the solvency and reputation of the borrower. You just need to have your passport with you. You can even make an application on the website of the chosenorganization, after which the funds will be transferred to the debit card.

The more loans are issued and repaid on time, the better the borrower's rating will be. How to fix credit history in this way? Several conditions must be met:

• Initially, an amount not exceeding 2 thousand rubles is issued on credit for a month, after which it is repaid in a timely manner.
• Then a loan for 5 thousand rubles is issued, which is returned ahead of schedule.
• After you can issue from 10 to 30 thousand rubles. for several months, and this loan must be repaid in accordance with the existing payment schedule.

Such a process will not take more than six months, and the BKI will already include information that the citizen took out three different loans that were repaid without delay. Some BCIs send information to banks on the last few loans of a potential borrower, so this method can really lead to good results. But this option is considered optimal only with a slightly damaged reputation, and if there were long delays on significant loans, then such actions will not give the desired result.

Regular use of a credit card

This option can also be effective. If a person has several credit cards that are regularly used by him, but the funds are returned within an interest-free period, then this has a positive effect on his credit rating and reputation. So issuing credit cardsbest if a person has a bad credit history. How to fix this situation? For this, recommendations are taken into account:

• It is advisable to apply for credit cards from several banks at once.
• You need to regularly pay for purchases with these cards, it is also important to make payments on the Internet with their help.
• Refunds are strictly within the grace period, so there are no delays.
• It is recommended to spend small amounts so that there are no difficulties with their return.
• If there are financial difficulties, you can use two credit cards, transferring funds from one account to another, so as not to fall out of the grace period.

If you use these tips for about six months, you can expect positive changes in the reputation of the borrower. Is it possible to fix a credit history in this way? With the above actions, this indicator can only be slightly improved, but if in the past a citizen categorically refused to pay the debt, and the bank had to use the help of bailiffs, then information about such irresponsible behavior will be transmitted to all credit institutions for 10 or more years.

Correction of reputation through the court

This option is only suitable in these situations:

• The loan would have been issued without the knowledge of the borrower, so he became a victim of scammers or even the bank acted illegally.
• The citizen had no delays and violations, but in the BKI about himthere is negative information about the error of this organization.

How to fix credit history? Feedback from citizens indicates that if they really have evidence of their innocence, the court may decide to remove the extra entry in the BKI.

Applying offers on the Internet

Many sites on the Internet offer the opportunity to improve a borrower's reputation for a fee. How to fix your credit history with these resources? In fact, such offers are fraudulent. No one can fix the reputation of the borrower, so you should not give your funds to intruders.

Repayment of all obligations

Often the history of the borrower is spoiled due to the presence of debts not only for loans, but also for other obligatory payments. These include taxes, alimony, or utilities. If a person fully repays all existing debts, then this will indicate that he has the financial capacity to cope with loan payments. Such actions usually do not lead to significant changes in the information in the CI, but may positively affect the bank's decision when applying for a loan.

Applying new standard bank loans

It is often necessary to get a mortgage or a car loan. Such loans are provided only with perfect CI, but often borrowers use a certain trick. For example, you need to apply for a mortgage at Sberbank. If there is bad information about the borrower in the BKI, the bankrefuses to lend. How to fix a credit history in Sberbank? You can use express loans or ordinary small consumer loans issued by this institution. After their repayment, the bank's internal documents indicate the high responsibility of the borrower. After applying for and repaying several loans, you can apply for a mortgage again. In most cases, borrowers are approved.

Opening a deposit

Initially, you need to choose a bank in which a person wants to get a loan in the future. It is desirable to open a deposit for a large amount in it. After six months, you can apply for a loan. Usually, even with a bad credit score, a bank provides a loan if its size does not exceed the amount on the deposit. With early repayment of such loans, you can count on a quick correction of the CI.

How long is data stored in the BCI?

Information about each borrower is located in the BKI for a limited amount of time. Before you fix your credit history, you should find out when information about delinquencies will not be available. Data is retained for 10 years from the last time changes were made.

When can I cancel my credit history?

There are even opportunities to cancel negative information. This is possible in the following situations:

• More than 10 years have passed since the last record of delays or other violations of the loan agreement by the borrower.
• By decisioncourt invalidates false information.
• Deletion of an erroneous entry on the basis of an application submitted by the borrower to the management of the BKI.

To use the first option, you should not apply for any loans for 10 years, and also do not apply to the bank with applications.

Is the information canceled when changing the passport?

Some people believe that if you change your last name or other personal information about yourself, this will allow you to cancel the CI. This is due to the fact that the citizen's passport is changing. This opinion is erroneous, because even if personal data about a person changes, the TIN number remains the same.

Some bank employees really do not notice changes in the passport, so they provide loans to citizens with a bad reputation as a borrower. If they allow delays, an audit is carried out, on the basis of which inconsistencies are identified. In this case, a citizen may even be held criminally liable, as the bank will consider that he used a fraudulent scheme.

The question of how to fix a credit history after delinquencies is of interest to many. The process can be performed in different ways, but they do not always give the desired result. It is advisable to initially take a responsible approach to your obligations and make timely deposits based on the payment schedule.