Credit history is a file on a borrower. It contains information about how much the loan was issued for, whether payments were made on time, to which banks the applicant applied. This dossier contains all loan commitments issued. Non-payment or poor credit history can affect your score to a certain extent.

You can hire a credit repair company that will help improve your ratings. A good credit history increases the chances of a positive decision in the bank on an application for a new loan and insurance companies can offer to issue a policy on favorable terms. You should familiarize yourself with several things or factors that may affect your credit history. They include:

Loan Delays

Even if the borrower is only one day late with the loan payment, such a late payment will be recorded in the credit history. But there is an important nuance here. It’s one thing when a person deliberately skips payments. It is different when the credit history of the responsible borrower is spoiled due to ignorance of the timing of bank transfers or inattention of the operational employee of the bank branch.

Banking Errors

For example, a bank may mistakenly not send information about repayment and closing of a loan to the credit bureau. Or the borrower may have a full namesake. And his loans are mistakenly assigned to another borrower. All these errors need to be identified and corrected.

Data Duplication

This can happen if the same loan appears in the database of the credit bureau history twice. This includes the human factor and technical failure. For example, the bank transferred the data on the loan and then sold this debt to a collection agency. Collectors, in turn, also transmit information on this debt to the bureau. As a result, the same loan “hangs” on the borrower twice and creates an additional debt burden.

Frequent Data Changes

With each request for a loan, you must indicate your full name, phone number, and passport data. If in loan applications the same borrower often changes personal information: passport data, place of residence, phone number, etc., then the bank will conclude that then there will be problems with such a borrower, and it will be impossible to find him. Banks are interested in stable clients.

Frequent Microloans

All microloans are also transferred to the Credit Bureau. All microloans have a very high-interest rate, so they are issued to borrowers with any credit history. And the main clients of microfinance companies are problematic. Banks refuse to grant loans to such clients.