The loan history is built together with the loan installments and repayments and loans or all loan commitments. It is worth consciously shaping it, because thanks to this a given person has a better chance for positive credit decisions in the future.
What is the loan history?
Every borrower or borrower in the country builds a certain lending history. The aforementioned Credit Information Bureau stores information on loans taken and some loans, including non-bank loans. Credit checker also collects data on the mode of repayment of financial liabilities. A positive credit history indicates that the person is a reliable borrower who repays the principal and interest installments according to the deadline indicated in the schedule, without any delay. It should be said that people who have a good credit history in credit checker will automatically have the best chances of getting a loan from a bank.
How to build a good lending history?
People who are planning to apply for a larger loan, for example a mortgage, should start building the most positive loan history in good time. Here are five rules for how you should do it:
Take out small loans that you can repay
Contrary to appearances, the lack of any loans taken on the side of a potential borrower is troublesome for the bank. He does not know what to expect from such a client. That is why it is a good idea to use, if possible, certain credit products, for example a credit card or overdraft. It’s a good idea to start building your credit history.
Take installment loan
A fridge, washing machine, or telephone payable in the store will help build the customer’s credit history, and the cost of such installments may be small. It is worth using the so-called installments 0%
Repay loans regularly
This is a key principle when building a positive credit history. Any delays have a negative impact on the customer’s history, therefore they cannot be admitted and repayment installments and all credit obligations within the previously agreed deadline.
Negotiate with the bank in case of problems
The history of lending for someone who intends to use a large loan in the future is very important. However, many things can happen in life, which can disturb the payment of installments of existing obligations. Therefore, it is worth negotiating with the bank in such cases and extending the repayment period or taking advantage of so-called credit holidays.
Consent to the processing of information
After repayment of the loan, credit checkermay delete the borrower’s data in a timely manner, but you can also agree to the processing of your data. Your credit history will not be at risk and will be in your favor.