Advice for budding entrepreneurs: how to fix credit history

Often the entrepreneur for business development takes a Bank loan. And, if you violate the terms of debt repayment can be in the black list of the financial institutions as unfair payer. Economist Ivan Nikitchenko will help to understand how to improve a credit rating in the eyes of the banks.

The BASICS. Credit history — a list of assets, with a chronicle of their service. “In the personal case of the borrower, all information is recorded on a particular loan. And delay even the payment can affect that other Bank will refuse the loan,” explains Nikitchenko. According to him, the Bank may write the data to client for its use, and can transfer them to Bureau of credit stories (BKI). “If prior to the loan the Bank made an appeal in person to the Bureau, in the case of the loan it needs to send back information about the client. And often, financial institutions use the services of BCI to assess the customer’s solvency. The data have great weight in making decisions — for example, if a person has high payments for other loans, the inspector will be denied a loan, because the client can’t afford a new obligations,” said Nikitchenko.

ACTIONS. Good credit history is useful because people can easily obtain a new Bank loan. “In the case of loans subject to the formula “base conditions + risk coefficient”. Lower the risk lower, the interest rate and the down payment,” — says the economist. Therefore it is better to trace their history, and it can be done, by law, once a year for free. “Then pay for the treatment, conventionally, for 50 UAH, depending on the Bureau. For travelers with its history person writes a request to the CRA and gets access. In a concise history can be displayed only score credit rating and in expanded form shows the data for previous loans and the payment schedule, the court decision”, — said Nikitchenko.

What happens when a particular BCI has no history, though he himself says that paying the loan. This may mean that the Bank worked with another Bureau: “In Ukraine there are several Bureau. Some of the banks cooperating with the 2-3 structures, which contain the history of almost all borrowers, but some are limited to one office or do not cooperate at all.”

If a person has a bad credit history, do not despair: it can be corrected. To do this, take a loan, and paid within the established timeframe. “Better to make out the consumer credits or credit card. The Bank can give out even with the bad rating of the borrower. But the conditions can be worse than for other clients — for example, the high rate because of the risks. But if the client paid the loan properly — this will be reflected in the history and reputation of a person “fix” — suggests Nikitchenko.

The expert also warns: fix credit history errors, if detected, must. “You can contact the credit Bureau with a request to remove the “left” of the loan that the person in fact did not take. The Bureau, in turn, will make the request to the Bank and, if the data are confirmed, the rating is correct,” explains Nikitchenko.