Credit history: why it is needed and whether it can be corrected

If the bank unexpectedly refused to give you a loan or a new employer changed his mind about hiring, perhaps the reason lies in your credit history. It's worth checking your credit history, even if you are 100% sure that everything is fine with it. We understand what a credit history looks like, what it can tell about you and what to do if someone else's debts are attributed to you.

Credit history is information about your credit obligations. It shows which banks, microfinance organizations (MFOs) or consumer credit cooperatives (kpcs) you applied to for loans and loans. When it was and what amounts you took. Whether you were a co-borrower or a guarantor for other people's loans. Payments were made carefully or delayed.

This information is stored in special organizations — credit bureaus (BCI). There are several of them, and each bank, MFI and CPC has the right to choose any bureau to which it will transmit information about its borrowers. Often financial organizations send data to several bureaus at once.

That is, if you took out loans and loans in different places, then it is likely that your credit history is stored in parts in several BKI. And it will be necessary to get data from all these bureaus in order to put the credit history together.

What does the credit history look like

A document with a credit history consists of four parts:

1. The title part

Your personal information: full name, date and place of birth, passport data, INN and SNILS (if you provided them).

2. The main part

Description of loans and borrowings, closed and active, information on maturity dates, outstanding balance, presence or absence of overdue payments. There may also be information about an unfulfilled court decision or about debt collection by bailiffs for unpaid services of mobile operators, housing and communal services, information about alimony.

Unpaid utility bills can be a reason for refusing a loan. Usually banks try not to get involved with malicious defaulters for housing and communal services.

The main part may also contain an individual rating of the borrower. It should be calculated by all the largest BCS, in which the histories of most borrowers are stored.

Banks and MFOs may not take into account the value of this rating when issuing a loan, since they have their own systems for evaluating the borrower. But, nevertheless, a high rating most likely means that you will get a loan from any bank without any problems. Low – not everyone will decide to lend you money.

To determine the borrower's rating, the bureaus analyze information from his credit history and calculate the probability that he will delay any payments for more than 90 days. Each bureau has its own set of data on loans and loans of a person and its own calculation methods, so ratings in different bureaus may vary.

3. Closed part

It describes who gave you a loan / loan, to whom your debt was assigned, if such a situation arose, and who requested your credit history (a list of organizations to which you gave consent to this).

4. Information part

It makes it clear where you applied for a loan / loan, as well as on what application and why you were refused. It also records "signs of non–fulfillment of obligations" - these are all cases when the borrower has not paid on the loan at least twice in a row for 120 days.

Who is interested in my credit history?

  •  To banks, MFOs and KPCS
Before lending you money, these organizations will study your credit history. And they can refuse if there is something wrong with her.

  •  Insurance companies
According to the credit history bureau, there is a connection between how a person pays on loans and how he behaves behind the wheel. Drivers who are regularly and for a long time late with payments are usually more likely to get into accidents and bring losses to insurers. Therefore, insurance companies also began to request a credit history in order to offer people fairer prices for policies.

  •  Carsharing services
Car-sharing companies request drivers' credit histories and credit ratings from the BCI before allowing them to use the service. If a person does not repay loans, companies will not risk giving him access to their cars.

  •  Potential employers
Such a check is more relevant for managers in the banking sector, the public sector or large commercial structures. An employee with a lot of debts, delinquencies and a bad credit history does not look very attractive to the employer. If the applicant consistently pays on a loan/loan that is less than 30% of his monthly income, this is only a plus for the candidate. The employer can evaluate this as a manifestation of reliability and accuracy, as well as the ability to manage finances.

It is clear why all these companies need a credit history, but why should I follow it?

A credit history will help you assess your chances of getting a loan or loan. To understand why banks and MFOs refuse you, insurance companies inflate rates for policies, car-sharing services do not connect to their services, and serious companies do not hire.

With the help of your credit history, you will be able to check whether fraudsters have issued a loan in your name. This can happen, for example, if you have lost your passport or your data has leaked to the network.

It happens that mistakes creep into the credit history. And it's better to make sure on your own that they are not there. And if you have already asked the lender to make corrections to the data, it is worth checking whether they really appeared there.

How do I get a credit history?

1. First you need to find it

The credit history can be stored in one BCI or in several at once. To find out which bureaus your history is stored in, you need to send a request to the Central Catalog of Credit Histories. The easiest way to do this is online:

  •  Through the portal "Public Services"
You need to go to the "Services" tab, to the "Taxes and Finance" section, to the "Information about credit bureaus" subsection. To access the data, you will need only a passport and SNILS.

In response, the bank will send to your personal account on the portal a list of all BKI in which your credit history is stored. The information will include the name, address and phone number of the bureau.

  •  On the bank's website
To do this, you will need the credit history subject code (a combination of letters and numbers). If you have taken out a loan or a loan at least once in your life, then you already have this code. You can find it in your loan agreement or specify it in the bank or MFI in which you took out a loan.

If it is not possible to recall the old code, and the bank or MFI does not help, the code can be generated anew. To do this, you need to personally contact any bank or bureau to create a new code.

This code will need to be specified in the request to be created on the bank's website. No later than the next business day, you will receive a letter with the names of all the bureaus where your history is stored.

If you are not a fan of online inquiries, then you can, for example, send a telegram to the Central Catalog of Credit Histories. The answer will come within three days. But they will send it to the email address that you specify in the telegram.

2.When you find out the list of bureaus, you will need to request your credit history in each of them

By law, twice a year each bureau is obliged to provide you with a credit history for free. In this case, you can choose: to request a report twice by e—mail or once in electronic form and once on paper.

You can submit an application:

  •  Through the bureau's website
To receive a document in electronic form, the easiest way is to send an online application through the BCI website. During the application process, you will be automatically redirected to the Gosuslugi portal for authorization, and then back to the bureau's website. The report will be sent to your email within three business days.

  •  By telegram
You can send a telegram to the official address of the BCI. In it, you need to specify your name, passport details and the email address to which you want to receive the report. In this case, your signature must be certified by a mail employee. The BCI is obliged to send a response within three working days after receiving the request.

  •  In the BCI office
Here you can get your credit history in paper form on the same day. But for this you need to come to the bureau with a passport.

  •  By regular mail
The longest and most time–consuming option is to send a letter to the BCI by regular mail. But first you need to certify your request with a notary. In the letter, you can specify how you want to receive an answer: in paper form to your postal address or in electronic form – by e-mail. In this case, the delivery time of letters will be added to the three days for preparing the report.

How do I get a credit history if I need it more than twice a year?

You can order it for an additional fee.

At the same time, the ways of requesting it do not change. All the options listed above are available: contact the BCI office, send a telegram, send a letter by mail or leave a request on the bureau's website. Some bureaus, for an additional commission, can provide an electronic report instantly, rather than after three days.

Many banks and MFOs offer to get a credit history through them, for example, by leaving an application in your personal account. But such services are always paid, and the price may be higher than that of BCI.

In addition, the bank or the MFI will request information only from those bureaus with which they cooperate. If part of your credit history is stored in other BCI, you will not receive it.

Who besides me can get my credit history?

The full credit report, which contains all the parts, including the closed one, can only be obtained by you.

The main part of your credit history and your credit rating can be studied by a bank, an MFI, an insurance company or an employer (any legal entity or sole proprietor) only with your written consent.

Any legal entity can receive the information part without your consent, but only for the purpose of issuing you a loan or loan.

I have an incapacitated relative in my care. He makes loans, and I have to deal with creditors. Is it possible to make a ban on the issuance of loans and loans in his credit history?

According to the laws, it is impossible to prohibit someone from receiving loans and loans. And it is impossible to make any prohibitions in the credit history. But information about incapacity can be added to it. For example, if the court found a person incapacitated or with limited legal capacity and decided to include this information in the reports of the BCI.

Creditors also have the right to send such information to the bureau if they have documentary evidence. But this information is not a direct ban on the issuance of loans or loans. This is just a warning to creditors.

I am the heir. Can I find out the credit history of a deceased relative?

Yes. But only through a notary on the basis of the documents required to open an inheritance case.

What does an ideal credit history look like?

An ideal credit history is a relative concept. After studying the same reports of the BCI, one bank can lend you money, and the other can refuse. It's just that each lender has its own system for assessing the reliability of borrowers.

The chances of approval increase if you periodically take out loans and pay them off carefully. For the bank, this is a better sign of your trustworthiness than the complete absence of loans in recent years.

If you have an outstanding loan that you pay off regularly and on time, most likely, another one will be approved for you. Provided that your debt load indicator turns out to be normal. You can find out how it is calculated here. But the main thing is to really assess your strength yourself and not take out new loans when it is difficult to repay the old ones.

The most important thing for a credit history is the absence of systematic late payments for a long time. A few delays for a couple of days are unlikely to cause a refusal.

How often is the credit history updated?

By law, creditors are required to transmit any updates to the BCI within three working days. For example, if you closed a car loan on Monday, the bank will have to inform the bureau no later than Wednesday evening.

Data on outstanding and all new loans and borrowings will be stored for seven years. Moreover, the term is calculated separately for each contract – from the moment when the BCI makes the latest changes to the history about it, for example, that the loan is repaid.

Keep in mind that banks and MFOs pay particularly close attention to your credit activity over the past two or three years.

I always pay everything regularly, but my credit history still turned out to be old outstanding loans and delinquencies. How did it happen?

Unfortunately, this happens. If you are sure that you paid everything on time, then the following reasons are possible:

1. Credit history has not been updated yet
Make sure that three business days have passed since you closed the loan. Do not forget that the information does not arrive in the BCI instantly.

2. The credit on the card is repaid, but the card is not closed
Banks, as a rule, charge a fee for servicing a credit card. Even if you have repaid the loan and no longer use the card, the bank regularly writes off this fee — and a debt may form on the card. Therefore, unnecessary cards should be canceled.

Contact the bank, ask them to close your card account and be sure to save the documents on the completion or termination of the contract. After a month or two, it's better to make sure at the bank that the account and card are definitely closed, there are no debts.

3. Once upon a time you took out a loan, closed it and forgot about it
But it turns out that there is a small outstanding amount, for example, a commission for some additional service. And the bank did not inform you about this – perhaps you changed your phone number or address, or there were some other reasons why the bank did not notify you. As a result, there is a delay in your credit history.

4. The human factor – the employees of the bank or the bureau made a mistake
For example, they were misspelled in the name or passport number. If the changed data coincide with the data of the defaulter, someone else's debt may hang on a bona fide borrower. It happens that someone else's information is entered to namesakes or namesakes. It also happens that the loan is repaid, but the lender has not transferred new data to the bureau. Or he handed them over, but the bureau didn't take them into account.

5. Fraudsters have issued a loan to you
If the scammers get hold of your passport data, they will be able to get a loan or loan on your behalf. Banks and MFOs verify the identity of the client before issuing money, but sometimes criminals manage to deceive them.

How can I fix a mistake in my credit history?

Suppose the bank has not transmitted to the BCI information that your loan is closed. Or the MFI issued a loan in your name, although you definitely did not ask for it.

Write an application to the bank or MFI and demand to correct the error. Lenders can accept such requests remotely – through their website, mobile application or email.

Within 10 working days, the lender is obliged to check and send the correct data to the BCI. It happens that a bank or an MFI sends information to several bureaus at once. Make sure that the records are updated in all BKI.

You can also contact the bureau yourself so that it corrects your credit history. The application form can be downloaded on the bureau's website. But his verification will take longer – 20 working days from the moment when the BCI receives your application. In addition, the application will have to be submitted in person at the office of the bureau or certified by a notary and sent by regular mail.

BCI will forward your application to the lender and will wait for a response from him. If someone requests your credit history during the check, the bureau will mark the data that is being clarified and may not correspond to reality.

The bank or MFI will confirm your correctness – the bureau will correct the error and inform you about it.

But it may happen that the bank, MFO or CPC will not agree with your arguments and will insist on an unpaid loan or delay. Then it will remain to solve the problem only through the court.

This is not a mistake, I really have a bad credit history. How to improve it?

You cannot delete anything from your credit history. But if you want to continue lending, it can be improved. Take very small loans or loans and repay them very carefully. Apply for a credit card or buy household appliances on credit.

So in a couple of years (and financial organizations are especially carefully studying your credit activity over the past 2-3 years), you will create a new history of relations with creditors — a good one. Do not forget to pay bills for housing and communal services just as carefully and on time. Most likely, after such "wellness procedures" you will be counted among reliable customers again.