The importance of personal credit history credit loans
personal credit is a bank or other financial institution to creditworthy borrowers do not need to provide RMB credit secured loans. Personal credit loans personal credit and repayment ability as the basis of the loan without collateral and guarantees, but need a certain identity, place of residence and proof of income. Borrowers without providing collateral or third-party guaranteed its credibility alone to obtain loans, and the creditworthiness of the borrower as repayment guarantee. Different loan conditions, processes, approval limits are somewhat different.
application for personal credit loans good credit history, apply for bank loans, whether credit or mortgage loans, banks first have to locate the individual's credit record. Banks accept the borrower's loan or credit card application, will first learn about past credit status of the borrower. If the good credit record, the application process is relatively smooth. Has good of credit records, on like has has a "reputation collateral", Bank on borrowing people assured, in loan scale, and term and interest rate Shang also may will has more of offers; if borrowing people of credit report has flaws, Bank on will carefully consider whether accepted application, offers also will was canceled; and if borrowing people of bad records too more or too serious, "reputation assets" too poor, Bank even has may directly refused to credit loan application.
specifically, credit history can be divided into positive and negative information. Positive information refers to information obtained by the subject in the past credit transactions and normal performance in the credit transaction information negative information refers to information of the subject in the past failed to credit transactions on time and repay the loan in full, failed to pay in full and on time and cost information, default information. Even if a person has a negative record, it does not mean that bad credit, only means individuals there was failure to comply with contractual obligations. Of course, the individual shall note good consciousness and habits of everyday life, can avoid negative records due to their adverse effects. First, note that to develop good habits and repayment habits, daily consumption, credit and various payment, pay attention to the repayment deadline and avoid overdue, honesty, honour, establishing good credit. Secondly, proper arrangements for activities related to credit, and associated warnings. Select the appropriate method of repayment, reminder to take effective measures to ensure that each loan and credit card payments on time.
in personal economic appeared temporarily difficult or income declined does cannot on time, and full loan Shi, for reduced on personal credit of effect, to active and Bank consultations, adjustment loan contract, can used following method:
1. If is loan early monthly also amount high, can and Bank consultations change contract elements, change repayment way, as by matching principal repayment way for for matching principal and interest repayment way.
2. can apply for an extension of the repayment period to reduce the payments, for example, will extend the loans of 10-year for 15-year loans. To note is that if you cannot pay in full and on time, a personal loan, do not take an evasive approach. The rules of the individual credit database record of the individual's repayment, if avoidance is not in their credit report will appear in the corresponding negative records, have an impact on future economic activity.
If you have a late payment records, applying for a bank loan or credit card, there may be commercial banks refused. But this does not mean that credit blemishes will always have an impact on you, because banks are more concerned about your good payment habits in recent years. If you have overdue many years has previously recorded, but interest has returned all, banks could still accept your application, credit blemishes will eliminate after a certain number of years.