For the citizen who for the first time addressed in bank with the statement for credit granting the main criterion influencing the decision of a question on the sum and terms of credit is the degree of ability to meet payments of the borrower.

Whence the bad credit history undertakes

At repeated circulation behind the credit, in the same or other bank, the decision on credit granting is accepted by bank, first of all proceeding from that information which is contained by credit history of the borrower.

The credit organizations (banks) consider credit history of the borrower bad if the borrower already ever took the credit, let even in other bank, but repaid it with fundamental breaches of debt obligations (delays) or at all didn’t return the obtained credit.

In order to avoid the risks posing serious enough threat for banks, in some bureaus of the credit stories, each bad credit history is marked by special “label”.

The basic criteria with which is guided by bureau of credit stories, are:

– no returning of the credit in general (the serious violation);

– Numerous delay of payments for the term from 5 about 35 days and more (average infringement);

– Unitary delay of payment for the term of less than 5 days (rate).

The credit history in which the information on unitary delay of payment for the term of less than 5 days is contained isn’t considered to be ideal, but during too time from the point of view of banks, it is not so bad credit history which could interfere with granting to the borrower of the new credit.

The credit history in which the information on numerous delays of payments for the term from 5 about 35 days is contained and more, as a matter of fact, bad credit history but as the credit has been anyhow extinguished by the borrower the decision on credit granting or on refusal in a loan is accepted by bank at own discretion.

As a rule, the credit history of the borrower containing the information on a non-return of the credit in the past simply isn’t considered, and the borrower in this case receives unequivocal refusal in credit reception.

Besides infringements at return of credits, there is a number of factors which can make credit history “bad”, even in the event that the borrower always honesty repaid in time the credits given to him.

The credit history can be impaired a little”, if against the borrower any judgements are taken out, criminal case is brought, or such harmless at first sight the claim as collecting of the alimony or return of a debt to the neighbor, for example, is submitted.

However the bad credit history in various cases can be corrected. Let us see how it can be done in the second part of this article.

Need Cash in 20 minutes? Get no credit check logbook loans !

Same day payday loans