When applying for a loan at a bank, the lender transmits the borrower's data to the Credit History Bureau. Payments on loans, as well as delays, will be reflected in the documents saved there.
The credit history contains information on the basis of which it is possible to judge how a person fulfills his credit obligations. It is formed from the information that banks submit to the BCH - the Bureau of Credit Histories.
What is Credit History Bureau
BKI are commercial organizations that have permission to get acquainted with the credit histories of citizens and process the data specified there. All BCHs are included in a special state register. There is also a subdivision of the Bank of Russia - the Central Catalog, which is used to obtain information about where exactly the history of a certain person is stored.
Consent to the transfer of such data to credit institutions is provided by the client himself when drawing up the contract. Such an item is included in the loan agreement without fail. If the borrower does not want misunderstandings to arise in the future, he should not be hindered from forming his own credit history.
The CI materials contain personal data of a person, information about the creditor organization, about the program that the borrower used. The credit history reflects all the nuances of the process of using a loan. The data is entered into a report, which is then submitted to the Bureau of Credit Histories. Information comes to the database in the form in which it was delivered - it is not edited or checked.
How long can information be stored in the BCI
The Credit History Bureau stores the details of a specific borrower for 15 years from the time the last update was made. When this period expires, the information is canceled. The credit history cannot be deleted, but it can be improved.
If the borrower has a "clean" history, the bank will be convinced of the reliability of the future client and that he will treat the fulfillment of credit obligations with full responsibility. Violations of the conditions for the use of credit funds cannot be hidden from the attention of creditors if an unscrupulous borrower wants to go somewhere else to get a loan. In case of serious problems in the credit history, the bank may decide to refuse to issue a loan to the applicant or provide far from the best credit conditions.
If for some reason your credit history leaves much to be desired, there is no hope for future approval of your loan applications. But you can try to improve the information about you - for this you can take a loan from the bank for a very small amount and pay it off on time and with strict observance of all conditions. If you have an account or open a card in any bank, it is better to go there. Having fulfilled the obligations on the loan taken, repeat the same steps - try to take another one, for a larger amount. The impeccable fulfillment of all the conditions set by the bank will help change the attitude towards you as a borrower for the better.
