Based on the results of sociological surveys, more than half of our country’s citizens who have ever applied for a loan have distorted information about credit history and the principles behind its formation. This article will unravel the mystery and debunk many myths surrounding credit history.
The credit bureaus obtain the personal data of the borrowers illegally
Bank employees are often faced with a situation where clients, upon learning that the CBI contains information about their loan repayment schedule, are literally misrepresented, accusing the bank of illegally distributing sensitive information.
As an argument, they rely on the inability to disclose banking secrecy. Often, the result of such conflicts is a statement from the client, sent to the Loan and Credit, with the requirement to close (or delete) information about their loans. At the same time, most people claim that they did not consent to sending information to the credit bureau.
In fact, it is worth noting the inattention of the customer who ticked the data transfer point in the BKI. Similarly, most borrowers do not even assume the legitimacy of sending this information to all banks and MFIs.
Loan and Credit only collects information on late payments
If you think that credit histories are only available to unscrupulous banking clients, then this is a mistake. Most law-abiding payers are genuinely surprised to learn that their stories are also stored in the Loan and Credit.
In fact, the credit bureaus collect information on absolutely all loans that have been credited with data transfer. It turns out that credit histories are formed not by the bureau, but by the banks themselves, whether they are positive or negative. Credit history is no more than the information the bank asks for when it receives a loan application.
Loan and Credits form a separate “black list”, the participants of which get no credit
The roots of this mistake come from the very citizens who have ever asked the Loan and Credit to make their relatives “unreliable”. Most often, retirees are calling whose children or grandchildren are collecting many credits without returning them. Older people, intimidated by collectors, are afraid of losing their living space, prompting them to make similar requests.