Credit History and Credit ScoreThe essence of credit history The credit history is the totality of information on the client's financial obligations, which shows the history of the latter's financial obligations or their fulfilment. The credit history includes data on the 5 years term preceding the time of the request, and it is formed by the financing received by the person, including:
• from its number and amount • from the amount, type, and terms of each financing, the nominal interest rate applied by the lender • from information on securing financing with pledge, • from the obligation to fulfil repayments arising from the loan (for example, whether the interest and principal amount were paid on time or not), • from the guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information on collaterals, • from the existence of overdue days/amounts in terms of funding and guarantees, as well as, from the penalties and fines set for them, • from unpaid or late utility bills
Credit history does not contain personal data, such as a person's ethnicity, religious and political views, social status, etc. In case of finding errors and defects in the credit history, for the purpose of clarification and correction, Customers can inform the Credit Bureau about it or directly contact the financial organizations by providing the information. You can learn more about credit history by visiting the following websites:
The essence of a credit score
A credit score is an indicator that is formed on the basis of credit history and shows how responsible the given person is as a borrower.
Based on the score, the possible credit limit, term and other conditions for a specific type of loan can be determined. The credit score provides a numerical assessment of the borrower's credit risk (creditworthiness) as a key tool for measuring the level of risk in consumer lending.
In case of not having a credit, the person can not have a credit score too.
“KAMURJ” UCO applies the FICO score and its own scoring system when making the decision to grant a loan.
Factors affecting the score include:
• customer's credit history • the amount and number of existing loans • the frequency of submitting a new loan application • making regular loan payments without delays, etc
You can learn more about credit history by visiting the following websites:
Steps for improving your credit history and score Credit history and score can be improved by correcting the main causes of their deterioration, demonstrating responsible behaviour and properly managing the credit load by matching it with current income, in particular, you need to:
• if available, to pay off existing overdue liabilities, including ensuring the repayment of existing overdue liabilities under existing guarantees • to ease the credit load by partially or completely repaying existing loans or reducing the number and amount of existing guarantees, if any • to make payments on existing loans in accordance with the schedule and not allow delays in the fulfilment of its obligations • monitor the implementation of repayments on existing guarantees in accordance with the defined schedule of the obligation which is secured by the given guarantee • when providing a guarantee, pay attention to the credit history of the given person and the latter's behaviour as a borrower • do not frequently apply for new loans, excluding the negative impact of new credit inquiries on the score.
|
For correctness and validity of the referred sites, for advertisements contained in them and possible consequences arising from the use of information the “Kamurj” Universal Credit Organization carries no responsibility.
In case of any inconsistencies between the published Armenian and English information, the Armenian version prevails.