Obtaining a loan or a loan depends not only on our creditworthiness, but also the credit history . What exactly is a credit history and how can we build it?

Do you need money for extra expenses?

Do you need money for extra expenses?

Do you want to buy something for your home and maybe build a new home? A loan or credit will be very helpful here. When we want to decide to apply for a loan or a loan, we should meet certain requirements. Among them is also the credit history.

What is the credit history?

What is the credit history?

The credit history is the data collected in the databases regarding loans and credits we borrow. One of the most popular databases is Credit Data, or Credit Information Bureau. In Credit Data databases there is every person who has ever taken a loan or a bank loan or a non-bank loan.

Creating credit history is primarily affected by the timely repayment of liabilities. When we pay all our debts regularly, our credit history will be positive and will be a good sign of us as a customer.

Credit history is mainly used by banks and non-bank companies offering loans and credits . On its basis, these institutions can determine if a prospective client is reliable and you will be able to lend him money without high risk. Thanks to the data collected at Credit Data, we can also speed up the process of obtaining money – often we do not even have to provide documents confirming our income.

Good and bad credit history

Good and bad credit history

Credit history affects whether we will be able to receive new loans and credits. Also, the data contained in Credit Data can help us whether to prevent other contracts, for example a credit card, or obtaining a debit on the account.

Positive data, i.e. a good credit history will testify positively to us and help us to obtain money for both smaller and larger sums. In turn, a bad credit history will bother us and can ruin our plans even for a few years ahead. The duration of information storage at Credit Data is up to 5 years!

How do you have a good credit history?

How do you have a good credit history?

As mentioned earlier, credit history is primarily affected by timeliness. When we pay our obligations punctually, then information about us will be positive. Of course, when we miss a few days at a time, it will not affect our creditworthiness. A greater risk to our credit history is the lack of repayment after 60 days from the date.

However, at Credit Data, not only data concerning the timeliness of loan and loan repayments is stored. Also, these data refer to the number of loans and credits, the number of loan inquiries and loans. For example, when we have recently applied for money in a bank or a non-banking institution, our credit history will also testify. As a result, you may find that our creditworthiness will be reduced and it will be harder for us to obtain a loan or a loan.