Credit products are of great importance to modern borrowers. For many, this is the only chance to make a major purchase or become the owner of their own real estate. But the bank does not always approve the required amount. Often the reason is a bad credit history, which was damaged by the borrower in the process of fulfilling previous debt obligations. A topical issue for potential customers of financial institutions who were refused approval of the application is where and for how long this information is stored.
The credit activity of an individual for the activities of any bank is of particular importance. Since the data contained in it, give an idea of the reliability of the individual who wants to take a loan. Before contacting a financial institution for a large loan, it would be useful to first check your credit history. Moreover, if the potential client knows that he previously had problems with the fulfillment of previous debt obligations. How much credit history is updated and what this information is is considered in this article.
Credit history concept
In fact, it is a collection of information on the basis of which bank employees decide on the possibility of issuing a loan. Includes the following data:
- Passport data of an individual and information about the banking institution where the loan was previously obtained.
- Loan amount.
- The period for which the funds provided are taken.
- Overdue payments and early repayment of the loan.
- Litigation between an individual and a bank.
Before moving on to the question of how quickly a credit history is updated, it is worth considering its structure. This information consists of the following parts:
- The total. Contains information about the institution that stores the information.
- The main one. It contains complete information about the financial credit activity of a specific individual.
- Closed. Information about the banking organization and personal information about the recipient of the loan.
- Confidential. Available only to the client. Includes a list of individuals who sent a request for reporting.
Important! The loan agreement must contain a clause that confirms the citizen’s consent to the transfer of data to the BCI. In the absence of consent, the bank is not entitled to provide this information.
Credit histories are conditionally divided into the following types:
- with a zero level: in case of a client’s refusal to provide information to BKI or lack of credit activity;
- with a positive rating: the client timely or early fulfills debt obligations on the loan;
- negative: delinquency, fines or litigation.
Who is provided?
The right to receive reports on the credit activity of an individual are:
- Central bank.
- The financial institution where the client applied for a loan.
- Judicial and law enforcement as requested.
- The client himself.
Where is it stored?
Services for the collection, processing and provision of information for each specific borrower are provided by a specially authorized institution - the Bureau of Credit Histories. It operates on the basis of a license granted by the Central Bank of the Russian Federation. The main activity is aimed at the formation and reporting of credit operations.
In one region, several such institutions can be located at once, in total at the moment there are about 30 such organizations. All of them actively interact and quickly exchange data, updating information in a timely manner.
How is credit history updated in the credit bureau? The law imposes obligations on banking and other institutions to provide information on a loan issued within 10 days after the provision. Also, data on late payments and loan payments are transmitted within the indicated period.
Since not all organizations transmit information stably and on time, a citizen has the right to independently study the credit history and verify the accuracy of the data.
Most people have a misconception about how often credit history is updated, as well as the importance of this information. If there were past due payments on a previous loan, you should not think that you can hide the data by contacting another bank. Information is available to all official organizations that issue cash loans and is stored for a long period.
How many years is credit history updated? The following update periods are distinguished:
- after 10 days;
- after 3 years;
- after 10 years;
- in 15 years.
It is necessary to consider each specific option separately.
After 10 days
After drawing up and signing a loan agreement, the information within 10 days arrives at the BKI unit. Similarly, data is entered for each legal transaction: making a payment, prepayment.
Every 3 years
Unscrupulous payers who do not know exactly when the credit history is updated, believing that the information does not change more than 1 time in 3 years, are trying to present themselves as a responsible borrower. To do this, people borrow small amounts of money and fulfill their debt obligations ahead of schedule. For the results of such activities, a citizen hopes to get a loan for a large amount.
This misconception arose due to the fact that when considering the solvency of a client, bank employees are limited to the last 3 years in the presence of high activity of credit operations. In a situation where there is little data for the indicated time, the verification period extends for several more years.
After 10 or 15 years
After what time is the credit history updated by law? According to the law, a period of 15 years was provided for the storage of such data. But due to the amendments that were made just 2 years ago, the period was reduced by 5 years. Now the credit history is saved no longer than 10 years from the moment of the last record.
Note! The purchase of goods, including installments, is also displayed in the data.
Each update of information resets the deadline, and the countdown starts anew.
How to find out the content?
The law regulates not only when the credit history is updated, but also provides for the right of a citizen to familiarize himself with reporting on transactions. Often this information is needed for borrowers, for example, before deciding whether to issue a mortgage. For information, you need to turn to the Central Catalog of Credit Histories, where they will provide data on the regional BKI, which generates a report on a specific individual.
Next, the person needs to go to the official website of the Central Bank, where you will need to fill out a special form. This is done in order to get the information you need for free. But in order to send an application, you must enter the code that is provided by the local branch of the BKI. Also, the data can be found out by personal appeal to the desired BKI. Information is provided within 10 days after submitting the application.
Most often, citizens are interested in the question of when the credit history is updated in order to remove negative information. Therefore, some try to request data as often as possible.
The client can use the right to receive information on a free basis only 1 time per year. Upon repeated contact you will have to pay. Depending on the region of residence, the fee for the provision of services can reach 2,000 rubles.
Error Detection Actions
How and how much is the credit history updated in case of an error? If the borrower was denied a loan on the basis of erroneous data on a previous loan that the financial one provided, then he has the right to challenge inaccurate information.
Algorithm of actions:
- Preliminarily, it is necessary to determine the BCI, which provides information on the loan.
- When handling an identity card, the applicant draws up a written complaint.
- BKI employees send a request to the organization that provided inaccurate data.
The bank's specialists review the request within a month. If an error is detected, corrections are made and the information is provided again. In a situation where the organization that issued the loan refuses to correct the data, and the client is sure of the need to change the information, you should go to court. If there are documents confirming the position of the loan recipient, the judicial authority imposes an obligation on the bank to correct the data.
The client is advised to check his credit history from time to time in order to avoid refusal to provide a loan in the future. If the rating has deteriorated as a result of any reason, then the situation can be improved by credit activity over the next 3 years.
To do this, you need to periodically take loans for a small amount and repay them in a timely manner. You can also purchase goods on credit. Regular payments on payments positively influence the formation of a client’s credit history.
Even if a citizen is confident in a positive rating of a credit history, there is a possibility of providing erroneous information by a financial institution. Therefore, it is undesirable to ignore periodic data verification.
If the client does not want to take small loans, then he will have to wait 10 years until the day when the credit history is updated.