I am the perfect borrower. I am 30 years old, I have two higher educations, an official job at a state enterprise, a high salary, I own real estate, there are no debts, children and dependents. There is a credit card and several closed loans without delinquency. Now I use one popular installment card, where I have a debt of 40,000 rubles for 12 months, I pay everything on time. I have no other loans.
And with all this, the Equifax credit bureau considers me a credit rating of 55%. This means that it is better than another 55% of borrowers - that is, I hang out somewhere in the middle, and Equifax estimates the probability of issuing a loan to me as average. Middle, Carl! Just wondering who then you need to be in order for the probability of issuing a loan to be high. Sheikh with his well? Banks are already screwed up!
Interestingly, about a year ago I had a higher rating, but lately it has been almost constantly inexorably decreasing. How is this possible and how can this be explained? I would be very grateful if you answer.
Andrew O.
Andrei, a borrower like you would like to get any bank. But don't confuse bank valuation with bureau valuation. Each credit bureau evaluates the borrower in its own way and assigns a credit rating to it. Banks have nothing to do with this rating.
Michel Korzhova
financial advisor at Tinkoff Bank
Each bureau has its own criteria for evaluating a borrower. In addition to information about delinquencies and the number of loans, the rating can be influenced by the client's age, region of residence, education, marital status, and many other factors.
In addition, your credit history may be stored in 2-3 different bureaus. One BCI may rate you as an ideal borrower, and another as an average.
Considering that you have described yourself as an ideal borrower, the rating may have gone down for the following reasons.
Bureau criteria have changed. It is possible that Equifax has changed something in its assessment of borrowers. Or maybe you also had some changes that seemed insignificant to you, but affected the assessment. Maybe at some point you had many loan products open at once? One way or another, we recommend that you contact the BKI and ask what could have affected the rating downgrade.
Information about debts that you do not take into account could get into the BKI. The bureau transmits data on debts not only for loans, but also for alimony, and for utility bills, and for communication services. This may be a debt to an Internet provider or a debt on some unclosed SIM card that you have not used for a long time.
Example: you have installed home internet. The provider provided you with a modem free of charge, provided that you use the services for at least two years. After a couple of months, you moved to a new apartment, forgot to return the modem, and, it turns out, you used the services for less than two years. The provider eventually decided to sell your debt to collectors, they did not get through to you and transferred information about the debt to the BKI. This is a case from real practice.
If you have a question about personal finance, credit history or family budget, write to: [email protected]. We will answer the most interesting questions in the magazine.
Any lending program, in addition to the obvious profit, also brings financial institutions a “headache” associated with the process of repaying the money lent out. In order to minimize risks and ensure a high-quality loan portfolio, banks are forced to analyze not only the identity of the applicant, but also the degree of his reliability. As a result of such analytical actions, an indicator of the conscientiousness of a potential borrower is formed, which is called a credit rating.
The borrower's credit rating is made up of a combination of numerous factors that may indicate the creditworthiness and financial predictability of the client or deny such qualities. Evaluation of these indicators allows us to draw preliminary conclusions about the quality of debt servicing by a future borrower. In Western countries, a similar technique is called when a special computer program makes complex mathematical calculations (forecast), and as a result of its work it gives out a scoring score, which, in fact, is a credit rating. For more information about the scoring score and how it is interpreted depending on the calculation method used, see.
The main method for calculating solvency ratios is based on the rating based on the credit history (CI) of the borrower. It is commonly referred to as credit scoring. Often socio-demographic factors are also taken into account: age, marital status, length of service, place of residence, place of work, income level, etc. These are indirect indicators that reflect the financial condition of a person. A rating based on socio-demographic factors can be applied, for example, if the borrower does not have a CI. This method can be found under the name: borrower scoring.
Many banks and MFIs use both methods at the same time, ie. the calculation of the borrower's credit rating will be based on his credit score and personal data (socio-demographic factors).
Why are all these ratings needed if you can find out the CI of the borrower, which will show all his solvency at a glance? The fact is that the rating (scoring) is calculated in a matter of minutes, and such a calculation costs much less than a request for a credit report (a form for providing a CI). For example, if we take the rates for physical. persons, then the calculation of a credit rating (hereinafter referred to as the CR) costs 300 rubles, and a request for a credit report will cost about 1,000 rubles. In addition, an employee of a financial institution must spend a decent amount of time analyzing the CI (he must be an expert in this field), and the CI gives a ready-made solution in the form of a number that the employee compares with the established threshold. If CR is below the acceptable threshold, then the client is given a refusal, and if it is in the allowed range of values, then approval is issued.
Actually, KR is useful to know for all people who lead or are going to lead a “credit life”. Low CR scores will signal a problem in your credit history and provide an opportunity to correct it in a timely manner.
Initially, the bank's security service checks all provided documentation for its authenticity and legality. If a decision is made to allow the project to be considered, an assessment of the potential borrower is carried out. It goes through 2 stages:
1. All information received from the applicant is entered into a special banking program, which processes them in accordance with the algorithms embedded in it. The data can also be processed by a third party with which the bank has a contractual relationship, for example, in the CBI (credit bureau). BCI not only store credit histories, but specialize in their processing (scoring) - the compilation of credit ratings. In addition to personal data, the client's credit history can also be analyzed at this stage. The result of the audit will be the assignment to the borrower of a certain level of integrity and financial stability.
But such machine processing of information often produces biased results. After all, the program works according to a scheme strictly laid down in it and cannot take into account all the nuances. That is why there is a second stage.
2. The loan officers of the bank are included in the appraisal work. Studying the received rating indicator, the package of documents provided by the applicant and talking with the client personally, they form their own, more lively, image of a potential borrower. It is in their power to make small adjustments to the final indicator of the responsibility and financial stability of the client. By the way, in banks, a decision on approving a loan can be made by a specialized structure -.
Here it is worth remembering that the final decision on lending to the applicant (or refusal to do so) is not 100% dependent on the borrower's credit rating. The bank has the right to refuse without explaining the reasons. And what reasons he had for that is a mystery behind seven seals. In MFIs, creditworthiness assessment is more simplified. They are satisfied with the analysis of the borrower's rating, which is done quickly, since the speed of issuing microloans is the most important competitive advantage of any microfinance organization, especially those issuing online loans via the Internet.
1. Maintenance of monthly payments. Here we are talking about the uniform and timely introduction of the necessary amounts of money to pay the loan and interest on it. With repeated failures of such a frequency, the rating value will tend to zero. At the same time, loan officers will be able to adjust the number of points assigned upwards, provided that the delays were insignificant in amount or time, or arose contrary to the desires and capabilities of the borrower (a banking error that is not taken into account by any BKI). In addition, the method of repayment of overdue debts is also taken into account - at the borrower's own request, this was done or in court. This is the most important factor from which CR is formed. Its share as a percentage in the calculation of KR is approximately 35%
2. Current debts on credit obligations. Any debt that the client has at the time of submitting a loan application is taken into account. The presence of existing delays negatively affects the final rating. This is also one of the most important indicators, the share of which in the final calculation of the rating is up to 30%.
3. Length of credit history. The duration of the borrower's CI or his credit experience plays an important role (15% in the total share).
4. Types of loans taken. Agree, it is much easier to repay any microloan than a multi-year mortgage or the same car loan. Therefore, when assessing reliability, the “weight” of the loan taken is taken into account, i.e. terms for which the applicant's previous loans were issued. The longer the term and the more systematic the redemption, the more rating points you can earn. The borrower is then more predictable in the eyes of the bank. At the same time, early fulfillment of obligations does not play in favor of the client, but is regarded as a negative factor for the bank (10% in the total share).
5. Frequency of requests to a credit institution. Any application for a loan to a bank or an MFI will be reflected in the applicant's IC without fail - this is regulated by the law. Credit histories record not only the fact of issuing a loan and the process of its repayment, but also the number of requests for a loan. Accordingly, the more often such requests were made, the more times the client applied for a loan. And if there is no information about loans issued in history, then the question arises - why was this applicant refused? So, there are reasons not to trust. In addition, too frequent applications for loans indicate the impulsiveness of a citizen, his inability to plan expenses and a very difficult financial situation. The share of this indicator is 10% in the calculation of the KR.
As a result, the final rating value is calculated by summing up each percentage share:
A significant impact on the level of the rating bar is also provided by the number of loans that are currently issued in the name of the borrower, his. An increase in the credit burden is regarded as an abuse of debt obligations and an increased risk of debt becoming overdue. After all, having several loans, you can get confused and unwittingly miss the next payment. And the burden on the total family income will be higher than acceptable.
The bank also does not forget about credit cards. Their number and the amount of established limits are also taken into account when assessing the reliability of the borrower. At the same time, the use of only part of the limits is considered a positive factor - this indicates your prudence, frugality and ability to plan your expenses.
1. Most banks at the stage of processing loan documentation offer borrowers to choose a repayment date that is convenient for them. Select the day after the paycheck. Then you can pay your debts first, and distribute the remaining amount for daily needs.
2. It is desirable to be credited in one financial institution.
3. Keep lines of credit even after you pay off your debt. An existing loan with no debt (even a current one) is your main trump card. This mainly applies to credit cards - we paid off the debt, but we don’t close the card, let it be. A constant turnover on a credit card, coupled with timely repayment, is assessed positively by the bank when considering a loan application.
4. Reduce credit card debt whenever possible. Let the set limit be not fully selected.
5. Use the services of banks or MFIs that offer programs to correct a credit history (). And some organizations specialize in this service, for example,.
Recall that once a year you can check your CI for free. Do not neglect this opportunity, because mistakes happen there too. There are frequent cases when in the history of the borrower there were not his loans at all, and even in the status of delay. And the bank refused the client ... It's a shame, isn't it?
Ratings, by and large, are not assigned, but earned. With your exemplary behavior, prudence and obligation to repay debts, you earn yourself good indicators of reliability in the future. The borrower's credit rating is your calling card. And what will be written in it depends on the possibility of your lending in the future.
Loans are an integral part of human life. Banks that issue money, first of all, look at the credit rating. How to improve it?
Your payment history makes up as much as thirty-five percent of your credit score, so you will definitely see negative effects if you miss monthly payments. If you did not set up mentions of them when you took out a loan, then do it right now. Or you can mark the dates you need on your calendar on your computer, phone, or paper. If you still can't remember what you need to pay in time, set up automatic payouts.
Instead of taking your credit score for granted, you need to review each report in detail so you can understand how you can improve your score. Many people pay attention exclusively to the figure itself. But you shouldn't do that. This figure will tell you something, but not everything. Take a detailed report and study it in its entirety to find all aspects that may be lowering your rating.
When you receive your credit report (you can get it for free, all you have to do is ask), review it carefully to make sure everything is accurate. Any mistakes can have a negative impact on your credit score. The worst time to find a mistake on your credit report is when you're trying to get a home or car loan, because at that point it's too late to fix anything.
Don't stop at one report. The different credit bureaus calculate your score on their own and they do not share information with each other. Therefore, if one of your reports does not contain errors, this does not mean that you will not find them in other reports. If you wish to report an error, you are better off contacting your credit agency rather than calling any individual agency.
As soon as you miss one or two payments, you should develop a plan that will allow you to return to normal as soon as possible. Talk to a financial expert at a non-profit credit account agency, or create your own strategy, starting with calling your lender. You'd be surprised how flexible lenders can be in providing programs that allow you to bounce back if you've missed just a couple of payments.
The closer you get to your credit limit each month, the more risky you will appear to lenders, which is why your credit score will suffer if you spend more of what is available to you. Experts don't agree on how high you can go, but if you don't hit twenty to twenty-five percent of your credit limit, your credit score won't suffer.
If you consistently find yourself closer to your credit limit than you would like, although you can still afford to spend more, you should call your lender and ask for a higher credit limit. Review your credit report and check for problem areas so you can imagine how the lender will react. Then think realistically about how much you would like to increase your credit limit.
Do you want to close credit cards that you do not use as soon as possible? Don't be in a hurry. Your credit score includes not only the percentage of funds used compared to available credit, but also your entire line of credit. Even if you rarely use the card, it still remains part of your credit line.
Family members or close friends can help you improve your credit history by making you an authorized user of their credit cards. If you ask someone in charge who makes all payments on time, their good financial performance will boost your credit score as well. You don't even need a physical copy of the card to do this, you'll still get all the benefits even if you don't use the card.
While requesting a credit report will have no effect on anything, your score may be slightly affected if a third party decides to check your history when they decide to grant you a loan.
If you apply for a loan in six, seven or eight places, this effect can be cumulative. And the combined effect of so many third party inquiries can have a negative impact on your credit score.
There are now four large bureaus in Russia that banks use to check potential clients - NBKI, OKB, Equifax and KBRS.
Each bureau has its own rating system and rating scale - the number by which banks make decisions on issuing loans. Therefore, the ratings obtained in different bureaus differ from each other. It is important to understand what each of them means.
Credit Bureau (Credit Bureau, BKI) is an institution that stores information about the credit history of individuals and / or legal entities, their creditworthiness in order to provide it to various organizations (for example, banks) upon request.
Credit rating is a measure of the creditworthiness of an individual (credit scoring). Credit ratings are calculated based on past and current financial history, socio-demographic data, and even relatives and co-borrowers.
If you have a low score, most likely a mistake crept into your credit history, or in the past you spoiled it by paying loans at the wrong time.
Information about your loans can be found in the reports of one bureau, two or more. Each bank chooses which bureau to send information to, only a few send data to four at once. Bureaus are independent organizations and do not synchronize credit data with each other.
Each bureau calculates a rating only according to the information he has. Banks, on the other hand, collect all the information together, add personal data about the borrower (income, work, marital status, region, and so on) there. This is how banks calculate their own rating, or rather scoring, on the basis of which the extradition decision is made.
Therefore, to assess the chances of a loan, it is important:
When considering an application, not only the discipline of the borrower is important for a credit institution, but also solvency, so the bank most likely will not issue a loan:
To check credit history and evaluate real chances for credit need to obtain and analyze credit reports. At least one report is required. Reports from all four bureaus are recommended for a complete evaluation.
Credit history is kept by credit bureaus. There are four bureaus in Russia where banks check credit history before issuing a loan. Banks collate data from these bureaus, add information about your income, age, region, work, marital status and make a decision.
To check your credit history and assess the chances of a loan, you need to obtain and analyze credit reports. At least one report is required. Reports from all four bureaus are recommended for a complete evaluation.
DO YOU HAVE AN OFFICIAL CREDIT REPORT OF CREDIT HISTORIES BUREAU OF NBKI, OKB (SBERBANK), KBRS OR EQUIFAX?
Download the report of any or all of these bureaus and get an assessment of your credit history from the PROGRESSCARD™ service.
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Credit history can be ordered twice a year free of charge in all credit bureaus. Click the button below for instructions on how to check your credit history at four credit bureaus.
The largest bureau of credit histories in the Russian Federation. Created in March 2005 on the initiative of the Association of Russian Banks (ARB) and operates on the basis of federal law No. 218-FZ "On Credit Histories".
The maximum bureau score is 850 and the minimum is 250. According to bureau employees, the average score for obtaining a small consumer loan is 600-650.
NBKI is the only credit bureau that does not include information about the credit rating in the credit report. The Bureau provides this information in a separate one-page report, and for a fee.
When you receive a credit report from the bureau, you will see a credit history score between 250 and 850, as well as a description of the four factors that affect the score. Unfortunately, these descriptions do not always reflect the actual situation and do not give an understanding what to do if a loan is denied.
To understand the reasons for the refusal, you need to conduct a comprehensive one.
A report from the credit history twice a year can be obtained free of charge by contacting the bureau directly. It will not contain a rating calculation. Bureaus and agents sell the rating separately. The price is about 300-400 rubles. To receive a credit report online, you will need a verified account on the State Services portal.
The United Credit Bureau is the second largest of the three largest credit bureaus in Russia.
This bureau has 143.9 million credit histories in its database. The exclusive partner of OKB is Sberbank of Russia. If you took a loan from the largest bank in the country, then your data will be exactly this bureau. But if you make a delay, then Sberbank will send data about this to all three bureaus at once.
The bureau was founded in 2004 under the name Experian-Interfax by the American company Experian and the Interfax group of companies.
Each of these parameters evaluates different characteristics of the borrower:
risk indicator
A number from 1 to 5 that determines the degree of reliability of the borrower according to its social and demographic components: gender, age, region of residence, profession, education, marital status.
Confidence indicator
Confidence indicator- means the availability of information about the borrower in the credit bureau. If there is information about at least one loan in the bureau's database, the confidence indicator is 1, if there is no data - for example, in the case of a new borrower applying for a loan for the first time - the confidence indicator is 0.
Scoring code
Most often in the OKB report you can find the inscription scoring code 7. This figure, unfortunately, means nothing to you as a borrower. But when banks and analysts see this number, they will find out by what evaluation model the client was scored and will be able to draw some conclusions.
Number of points
The "Sberbank" version of the credit report and credit rating of the OKB can be obtained at or by contacting the branch in person.
Despite the fact that we are talking about the same BCI, the versions of the reports received from Sberbank differ from the reports received directly from the bureau. In the Sberbank report, you do not find personal data, and the Sberbank credit rating includes a number of parameters that are not in the original document. We wrote about them above.
From this we can conclude that for the growth of credit scoring it is necessary that there are no long delinquencies (or none at all), there is no large credit burden, there are no frequent applications for loans, and the age of the history must be at least a year.
Equifax is one of the four largest bureaus in the country. Founded in 1899 in the United States, it has the status of an international credit bureau, since the general base of the CBI includes data from credit bureaus from 19 countries of the world.
Equifax is a member of the Association of Regional Banks of Russia (ASROS), as well as the Russian Association for Electronic Communications (RAEC)
LLC "Credit Bureau Russian Standard" - a subsidiary of JSC "Bank Russian Standard" - one of the leaders in the Russian market of credit histories. The Bureau maintains over 140 million credit histories and inquiries.
The Bureau operates in accordance with the requirements of Federal Law No. 218 “On Credit Histories” and current national and international standards in the field of information security.
Scoring allows you to quickly assess your chances of obtaining a loan without a detailed analysis of your credit history, choose the type of credit organization (bank, MFI/CPC), and get recommendations for its improvement.
What Sberbank focuses on when making a decision on a loan application. Much has been said and written about this, but there is still little specifics. Clients who plan to take a loan in the future try to find out their credit score in advance and, based on the information received, judge whether it is worth applying at all or it is better to wait with it. Is it right to do so? This is probably the subject of a separate discussion, but today we will talk about the credit rating. The majority of potential borrowers have a credit rating of 3 in Sberbank. What this means and will be discussed.
If the client managed to find out that his credit rating is at around 3, this is not at all as bad as it might seem at first glance. Today, Sberbank divides its customers into 5 main categories. There are also various subcategories, but we will not talk about them for now.
To date, about 11% of Sberbank's clients have a credit rating of 4 (statistics also take into account clients of foreign offices).
What are these indicators based on? The answer to this question lies in the characteristics of the borrower himself, in how he interacted with banks, because the foundation of a credit rating (hereinafter referred to as CR) is a credit history. If the client has never taken loans and he has no credit history, this is also not very good, because his CR will not rise above 3. Well, if the credit history is damaged, then the CR may not reach 2. What else forms the CD?
Particular attention is paid to loans secured by collateral.
We hope the meaning is clear. The CD is formed on the basis of somewhere immoral, but very pragmatic criteria. Sberbank proceeds, first of all, from its financial interests, and this is a completely normal practice in this area.
Knowing your credit score, you can take steps to improve it. Many Sberbank customers think so, but they are not entirely right. In connection with the increasing cases of loan defaults, banks keep a "credit file" for each borrower very carefully. There are a lot of hidden indicators, which, among other things, track the borrower's activity in artificially improving credit history. And this also affects the CR.
Naturally, this does not mean that you need to give up and do nothing. Improve your skills, find a better paying job, take some other steps to improve your financial condition. Pay off current debts and by doing this you will definitely improve your CR. You should also adhere to the following recommendations:
So, if Sberbank assigned you a credit rating of 3, then your financial situation is assessed as normal. You are a strong average player, you can be glad of this, but if there is a need to raise your rating to 4, then you will have to try. Good luck!
