Loan with bad credit history – it’s not so bad

Today, not every Russian borrower has an unblemished credit history.

In this article we will talk about what KEY is considered really “bad”, and how to take the credit the borrower with a “tarnished reputation”.

KI and BKI: transcript

Start from afar… In Russia every stage of our work is meticulously recorded in the workbook. In this document stores information about the recruitment, dismissals and reprimands, commendations and promotions.

The same problem solves and credit history in detail displays borrowed the biography of the borrower, all of its early repayment of loans and allowed ever delay. In addition, the KEY contains personal information about the borrower (from passport data to the tax code), the details of each draw them ever the loan agreement and a common history should provide information (who and when requested by the Bureau this reference).

The KJV is something like a “credit library”, which collect, sort and store the data about the payment discipline of borrowers from different banks.

By the way, Russia officially is not one, but several credit bureaus. That is why there is a Central, unifying into a single registry data for all bureaus of the country. However, in the CCCI can request information of a Russian, and a list of BKI where they are stored.

Information to the Bureau gives the Bank or financial institution with the consent of the borrower. Theoretically, the client may refuse to provide to the CRA information about yourself and any future loan. But as practice shows, in this case he just doesn’t get…

By the way, recently, the “quality” reputation of the borrower from mere formality has become a decisive argument when deciding on granting funds in the Bank.

What is “good” and what is “bad”?

To spoil his reputation can be a dozen different ways.

Delay

Often a bad credit history is formed through the fault of the borrower – due to improper performance of their obligations to the Bank.

However, the delay also are different. For example, if You a couple of times made a mandatory payment under the contract with a delay of a few days – it will not be the cause of failure when making a new loan. If the delay was up to one month – the Bank may require additional collateral or increase the interest rate.

And worse, when the delay in payment exceeds one month or the “old” loan was not repaid at all. In this case, the borrower can for a long time (if not forever) to forget about getting this service again.

Error of Bank employees

One should not ignore the human factor. It happens that the borrower timely and fully make payments under the contract, a Bank employee somewhere down the wrong date or amount. The result is a technical delay, as in the KJV gets broken stats.

Technical failures

Of course, to repay the loans through electronic terminals or Internet banking is very convenient. However, in this case the borrower are not immune from technical failures.

Sent payment on time can not just walk up to a Bank account, “hanged” somewhere for a few days. As a result, the borrower formed a technical delay, and the “random” duty quietly acquires fines, penalties and double interest.

Fraud

To arrange a loan without the knowledge of the borrower can be in his stolen passport or a duplicate. And most people know about this “surprise” from a call to a collector or a Bank employee.

The result of the trial, justice will certainly prevail. However, stored in BCI reputation will remain stained

How to fix it?

Just to clarify: the “backdating” in the credit history it is possible to correct only technical errors. In other words, if You are actually allowed to ever serious delay, this “stain” will remain in the “biography” forever.

But it happens the other way. For example, “bankopada” last years began to appear overdue from borrowers of banks with revoked license. The fact that the interim administration “bankrupt” is sometimes just “forgot” to convey information about timely repayments to the credit Bureau.

But the most dangerous mistake is the appearance in the credit history information about a non-existent loans that the borrower is not made in principle.

To “erase” a technical error from the file, you need to make a written request to verify his signature at the notary and send the document to BCI (personally or by mail). Verification of such information usually takes about months, after which the borrower is sent an official response. If You are not satisfied, you will have to go to court.

But to correct the mistakes of the “real” negligent borrower will have personally.

Behind the scenes “trial period” for the Bank’s customer in Russia is two years. During this period the “bad borrower” need to make at least a small Bank loan and repay it in gently. Ideal – credit card with minimal limit is given even to borrowers with a bad reputation.

How to get?

Consumer

In the new year, Russian banks serious about “cleaning” and improving the quality of their loan portfolios. Therefore, to arrange a loan with a “tarnished reputation” now will be much more difficult than before the crisis”.

However, we still banks, loyal to the borrowers with a bad history. Of course, such indulgence would have to compensate a high interest rate.

For example, a relatively “flexible” lender is the Bank “Renaissance Credit”. Here to issue the consumer loan in the amount up to 500 000 rubles, you can literally in 10 minutes and only on two documents (without proof of income).
While the annual interest rate ranges from 27.9% to 55.9%. Of course, the maximum percentage intended for bad “bad guys.”

Map

Get a credit card with a minimum limit of “bad borrower” is easier than a classic cash loan.

Usually card, “not looking,” distributing banks that specializiruetsya in the consumer sector. Last year these banks were considered the already mentioned “Renaissance Credit, home Credit, Bank, “Russian Standard and Tinkoff Credit Systems.

However, last year many of them were in the risk zone level of outstanding debt. The result was not long in coming – “Russian standard” is not ranked in the TOP 10 in terms of deposits, and the outflow of deposits in home Credit Bank by the end of October amounted to almost 8 billion rubles, or 4% of all deposits.

Therefore, in the current year “retail” banks certainly will toughen requirements for prospective owners plastic.

But no harm in trying… for Example, Binbank “Classic” credit card can get Russian working over 22 years with no arrears at the time of card registration.

29 Dec 2014 the interest for the use of borrowed funds according to a map in b & n account for 38% per annum. In this case, the cardholder will have to prove their solvency certificate 2-NDFL, title, passport or documents of the property.

A car loan

In the current year to apply for a Bank loan with bad credit history will be almost impossible. Of course, if the arrears on old debts was irrelevant – the Bank can close her eyes.

However, first, all large organizations now screen out unreliable borrowers automatically. And, secondly, the conditions for “bad” clients will be much worse than “trustworthy” (primarily, it concerns the size of the down payment and interest rate).

Today, motorists are much easier to arrange installments (especially on a new car directly from the dealer. In this case, previous statistics of the borrower or is not checked at all or not a big deal.

Mortgage

When making housing loans more weight is current the borrower’s creditworthiness, rather than its “accuracy” in the past.

However, clients with a bad reputation to arrange a mortgage will be in not the best conditions. The required amount will be “cut” to a minimum and will require making a serious down payment (50%). In addition, there will be serious fault” to the level of income, place of work, the “quality” of the collateral and the reliability of the guarantors.

Well, of course, the interest rate for a borrower with a negative history will be as high as possible. By the way, in systemic banks (Sberbank, VTB, Alfa-Bank) “bad” borrowers to apply today for a mortgage useless.

Microfinance institutions

Rather such loans are not banks, and private organizations.

For example, in the company Miscredit the quality reputation of the potential client generally has no effect. However, such “fast” money will cost the borrower in 75% or more per annum.

In General, assuming at the time serious arrears Bank debts, You will be “doomed” to settle for the most expensive and hard options of loans in the future