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Very bad credit history what to do. Bad story: where to get a loan

People who do not use borrowed funds may not even be aware of the existence of the Credit Bureau and what constitutes credit history. However, those who are going to take a mortgage should study this issue in more detail. The fact is that when checking an applicant for such a large and long-term loan, even the slightest black spots in his credit history can cause a refusal. Let's talk about what bad credit history means.

What is a credit history and how is it formed?

The concept of the term credit history is deciphered in Law No. 218-FZ of December 30, 2004 “On Credit Histories”, the procedure for creating / liquidating and regulating the activities of the Credit History Bureau (BKI) is also prescribed there. According to this regulatory act, this is information that reflects the fulfillment by the borrower of loan obligations, stored in the BKI. It consists of open and closed parts. The open part of the credit history contains personal information about the borrower (full name, passport details, address of residence, etc.), as well as data on the fulfillment of loan obligations by him, in particular:

  • the total amount of the loan;
  • the total period of use of borrowed funds;
  • maturity of interest on the loan;
  • amendments to the loan agreement, including those regarding an increase in the loan repayment period, etc.;
  • the date and amount of the actual repayment of the loan by the borrower;
  • repayment of the loan by collateral (if any);
  • facts of litigation regarding the execution of loan agreements.

The closed part contains information about the credit institutions with which the borrower dealt, as well as about all entities that requested information about him from the CBI. is formed on the basis of information that creditors submit to the CBI. It is worth noting that since 2014, not only banks, but also credit cooperatives, as well as microcredit organizations are obliged to cooperate with BKI. At the same time, there are about 23 CI Bureaus operating in Russia today, and far from all of them have combined databases, and banks, as a rule, work with only a few of them. Consequently, different BKIs may contain different information about the borrower.

Causes of bad credit history

Credit history can be damaged:

  1. through the fault of the creditor;
  2. due to the borrower.

The bank is able to damage the borrower's credit record, for the most part, by transmitting false information about his credit obligations in BKI. For example, there may be such a case when the borrower agreed to receive a loan, but, in the end, decided not to take it, and an overly proactive bank employee has already transferred the data to the CBI. Thus, an unsecured loan may appear in the file of a failed borrower. Mistakes may be of a different nature, but the essence is the same - the borrower should not count on obtaining a new loan until he corrects the situation.

As they say: “saving the drowning is the work of the drowning themselves”, the borrower himself will have to deal with correcting the bank’s mistakes. To do this, you will need to contact the bank, from where the BCI received false information, with a statement about the transfer of data on the true state of affairs to the bureau. It is for this reason that experts recommend that borrowers ask about their credit history before applying for a mortgage or other large loan. Moreover, once a year the borrower can do it for free.

As for the fulfillment by the borrowers of obligations under previous loans, the following facts can spoil the credit file:

  1. any delay in making a monthly payment;
  2. the presence of regular or long delays;
  3. repayment of the loan through the sale of the collateral and litigation under loan agreements.

How badly your relationship with your previous lender ended will determine your prospect of getting a new loan. So, with a one-time delay in payment on a loan for no more than 5 days, with further accurate and complete repayment, the probability of refusal in the next loan is small. Regular or long delays guarantee you a refusal to lend at a large bank on standard terms, but you may be able to get a loan at a high interest rate from a small lender. But the categorical non-repayment of the loan, which ended in litigation, will surely close your access to new loans in banks.

How to fix credit history?

In order to correct your credit history, you need to bad loan take a few more loans and on time, as well as carefully repay them. Thus, the overall impression of the borrower's dossier will improve. In addition, if there is a logical explanation for the presence of loan delinquencies, then, in addition to other documents, it is worth attaching evidence that the problems in the credit history are caused by objective circumstances or circumstances beyond the borrower's control. For example, it can be a total delay wages during a crisis or serious illness one of the close relatives. This way you will show the bank that you are a fairly disciplined and responsible debtor yourself, but in this case factors beyond your control.

In addition to justifying negative points in your credit history, you can transfer bills to the bank for payment utilities or communication services that demonstrate your high financial discipline. If there has been a slight delay for technical or other reasons, you can immediately try to negotiate with bank representatives so that they do not transfer this information to the CBI (although the chances that they will meet you are low).

There are also illegal ways to clean up your credit history. Some organizations undertake to do this for quite decent money. Also, a number of loan brokers offer to improve the borrower's credit history for a percentage of the transaction amount with the bank. However, when contacting such organizations, remember that any illegal actions sooner or later run the risk of being found out and then the bank will not only refuse to issue you a loan or demand its early return (if the truth became clear after receiving the loan), but will also add you to the bank black list , which will close for you the opportunity to take any loans at all in any credit organizations.

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So you need a loan. After being rejected by one bank, you went to another, but you failed there too. What is the problem? It would seem that you have a certificate of income, and the required amount is not from the category of sky-high. These problems are most often faced by people who have a bad credit history. What does it mean? It's very simple: at some stage in your life, you refused to repay a loan or regularly delayed contributions.

For banks, a customer's credit history is one of the the most important criteria. And if you have established yourself as an irresponsible borrower, it will be quite difficult to correct a negative reputation. After all, the bank is not at all interested in cooperating with those people who are prone to violations of the terms of the contract. In fact, your life circumstances for them practically do not matter. Much more important is how reliable a borrower you show yourself to be.

How is a bad credit history formed? There are several disorders that can contribute to this:

  • Complete non-repayment of credit funds (this violation is the most serious, and in the future you should not count on a positive credit decision at all).
  • Multiple delays in payments for a period of 5 to 35 days or more (a violation of average severity).
  • Single late payment less than 5 days.

As for the last point, it is not considered a violation as such. After all, it is quite common for a borrower to deposit funds close to the deadline for payment, and they simply do not keep up with right time get to the bank. Almost no one pays attention to such trifles. If delays for a period of less than 5 days are regular, you cannot call an ideal credit history. However, most banks will not see serious reasons for refusal.

If payments are overdue for a period of five to 35 days, this is already a bad credit history. However, if the debt was somehow paid off, the bank may subsequently approve your application for a new loan.

Clients who have not repaid credit funds at all in the past are not even considered by banks - they are instantly refused.

However, a bad credit history can also be a person who has faithfully paid the debt to the bank all the time. Obstacles to obtaining funds can be litigation, or even such a trifle as a debt to a neighbor.

How to fix the situation?

Many are interested in where you can find such opportunities, of course, you can. However, it is unlikely that you will be able to cooperate with official structures. And you will have to pay for this. Therefore, it is better to think about how to fix your credit history (or rather, improve it).



You can get a cash loan with a bad credit history special services, however, as a rule, for such pleasure you have to pay exorbitant interest payments.

In this post, I want to look at what it means bad credit history what to do if this now popular phrase can be applied to you. Judging by the number of requests in search engines, this issue is now very relevant, so it can not be ignored by the Financial genius.

So, in separate publications, I have already talked about, in general, how it is formed, and. I will not repeat this here: you can follow the links and read it, everything is described in sufficient detail there. I will focus on the main thing: what is a bad credit history and how scary it is.

What is a bad credit history?

Let's say you apply to a bank for a loan, you seem to have normal income, you have provided everything Required documents, but the bank refuses you without explanation. Submit documents to another bank - again. In the third, fourth - everywhere the situation is repeated. There is a very high probability that the reason for the refusal is a bad credit history. Moreover, banks often do not talk about it directly - they simply send a request to the Credit Bureau, receive a response from which it is clear that the borrower has often made late payments in the past, and refuse.

By the way, sometimes it happens that a bad credit history appears in people who previously had no credit relations with banks at all. This means that they had serious debts in other areas, such as paying taxes and fees or utility bills. Such information can also be stored in the Credit History Bureau, in case lawsuits were filed against this account or criminal cases were initiated, as a result - a damaged credit history.

Bad credit history is information about poor performance in the past specific person or an enterprise's loan commitments and other commitments held by the Credit Reference Bureau (CBR).

Someone believes that the BKI is independently engaged in the formation of a credit history using data submitted by banks. But this is not so: the Bureau of Credit Histories only deals with the storage of information transferred there by financial institutions, thus, the formation of a credit history takes place in credit institutions and other organizations that submit information.

Bad credit history varying degrees gravity.

Damaged credit history can be different and depends on the degree of default by the client of his obligations.

– For example, if a person allowed delays in repayment of loans for a period of up to 5 days, and there were not too many of them, then it will, of course, not be a completely ideal credit history, but not so bad that the bank would refuse a loan. Most likely, such a borrower will be able to take out a loan without problems on a general basis.

But for entrepreneurs who, for example, take and earn on borrowed funds, a damaged credit history is, of course, negative factor, because because of it a person will lose additional income.

Thus, it is always necessary to approach the repayment of your debt obligations with the highest degree responsibility so that a bad credit history does not become a serious problem in your future life.

Bad credit history: what to do?

Suppose you have already formed a damaged credit history, what to do in such a situation? The best way, as I wrote above, use this as a powerful incentive in order to stop.

But if you still can’t do without lending, then there are options too. In particular, you can correct your credit history if it has become bad due to an error, or at least make positive changes to it. In addition, you can try to get a loan with a bad credit history - there are such opportunities. I will discuss these options in more detail in subsequent separate publications on .

Well, that's all for today. I hope that you understand what a bad credit history is, what causes it, and what consequences it can lead to. Stay with us, improve your financial literacy, learn to competently and effectively manage personal finances and build mutually beneficial relationships with banks. I remind you that you can ask any questions you are interested in in the comments to the articles or discuss on our forum. See you in new posts!