The credit rating or as it is called the credit score was finally introduced in our country. This handy tool should simplify the procedure for evaluating a potential borrower, as well as help the owner of the credit history to quickly understand its significance for lenders.
From today, anyone who has ever taken a loan or a microloan when requesting their credit history will receive a general assessment of it – a credit rating. So far it is claimed that it will be formed from three main components. This is the degree of the borrower’s debt load – that is, the ratio of the total amount of payments on loans and loans per month and official income, the presence of overdue payments and the age of the credit history, which begins with the first official loan. Then everything is simple: if the rating is high, then such a borrower is trustworthy and they are more willing to be given a loan or a mortgage. If the rating is less than the average, some banks will refuse immediately, some will be able to provide a small loan or will collect more information about a potential client.
Speaking about additional information about the client, it is impossible not to mention foreign experience. We have already written more than once that in Western banking systems, when calculating a credit rating, slightly more data about a person is used. This and the payment of housing and communal services, payment of kindergarten or school, taxes and fines of the traffic police, for example, as well as other mandatory payments. Sometimes other aspects of human interaction with his finances are taken into account, for example, the state of debit accounts.
Many already know that a credit history request can be hard or soft. This information is again taken from unofficial sources. But, in the official news it says that the number of requests for a credit score will also affect this very score. Therefore, let’s hope that the system defining it will evaluate different requests differently.
The advantages of such a rating are obvious: a single system for all, which determines the solvency and reliability of a person, and, in principle, a person’s attitude to finance as a whole. When this system will be actively used and more and more creditors will trust it, it will be possible to take a loan much faster. And the consumer himself will be able to more easily determine if he will be given one or another loan.
How to find out your credit rating?
By law, any citizen of Russia can get his free credit rating twice a year. Once documented, the second in electronic form. To do this you need to contact the credit bureaus. The third and subsequent times will be paid. But do not forget about the fixation of each request. No matter who will carry out the bank or you yourself – everything is recorded and taken into account in the subsequent calculation of the rating. On the other hand, remember that the obtained credit score is formed at the moment and in a week or two it may turn out to be different if the new information on your financial affairs is included in the LIC.
Financial experts believe that this tool should have a positive impact on the attitude of people to their financial obligations. When a person sees a concrete assessment in front of him, he will want to improve it or, at least, not to lose his achievements.