Contents.
What is a credit history?
Credit history is a set of information about all existing and previous financial liabilities, as well as data on their repayment. It contains the following information:
- personal identification data;
- loans received and their amounts;
- compliance with payment schedules;
- the presence of delinquencies;
- card limits;
- register of credit history requests;
- current enforcement proceedings;
- information on debts.
A credit history check involves a full or partial analysis of information collected and regularly updated by special bureaus and agencies. Financial institutions have the right to exchange information on the payment discipline of users, in accordance with signed agreements.
The importance of credit history
Credit history determines the terms and conditions on which a financial institution or other lender will grant a loan. It is used to assess the solvency and reliability of clients. A positive credit history makes it possible to obtain funds on more favourable terms, while a negative credit history makes it difficult or even impossible to obtain funds and leads to an increase in the interest rate.
An important point: the data in the file is kept for a long time, namely for 10 years from the date the borrower fulfils the terms of the loan agreement. It is better not to violate the established payment schedules and not to spoil your credit history. The convenient GlobusPlus mobile application has a payment reminder option that allows you to control the timeliness of payments. You can also reduce or increase the limit on your Globus Plus card.
How is a credit history formed?
Credit history is an important factor in making decisions about the provision of financial services. It is formed on the basis of data on all monetary obligations and transactions and reflects the client's credit behaviour. Its main stages include the following:
- receipt of funds;
- use: amounts, terms, rates;
- repayment of liabilities: timeliness, terms and amounts of payments;
- delays or overdue payments;
- loan closure.
Banks provide relevant and updated information on their customers' credit behaviour to professional bureaus and agencies, and therefore credit histories may change over time.
Why is it important to check your credit history?
Employees of financial institutions closely monitor compliance with loan repayment schedules and exchange information about borrowers who have payment problems. That's why it's important to periodically evaluate your own affairs and know how to check your credit history online for free. A bad reputation affects more than just getting loans. Irresponsible customers may have their insurance policy premiums increased or be denied the service altogether. Employers also evaluate the discipline and reliability of employees based on their credit history. So the more positive notes in the dossier, the more options and benefits are available to the consumer of banking services.
How to check your credit history online for free?
Many people want to check their credit history online for free, but don't know how to do it. Every citizen has the right to receive a report free of charge once a year, and all subsequent requests will be charged. Borrowers' dossiers are compiled by special credit bureaus, and information can be obtained in the following ways:
- on the official website of the Ukrainian Bureau of Credit Histories;
- in the mobile application ‘Credit History’ from the UBКИ;
- in Viber and Telegram chatbots of Ukrainian credit bureaus;
- by registered mail in the form of a paper document with the bureau's seal at a Ukrposhta branch;
- in mobile applications of partner banks;
- by email with a digital signature;
- in person at the office of a credit bureau with a passport and identification code;
- in the Unified Register of Credit History (URCH) of the borrower.
The Diia app has a notification service for checking and changing credit history. When a person is issued a loan or simply checks their file, the user receives a push notification and can respond quickly to the intervention.
For financial institutions, credit history is an important factor that significantly affects their lending decisions. You shouldn't expect references to outstanding loans to disappear over time. For example, the UCCI bureau keeps such information for an unlimited period of time. Having closed loans repaid according to the payment schedule indicates the borrower's reliability, and banks are more willing to lend to disciplined clients.
