What Happens to Your Credit History After Bankruptcy
Posted: Tue Feb 18, 2025 9:45 am
One of the reliable ways to get rid of debts is to go through the bankruptcy procedure. In the article we tell you how this affects your credit history and how long after bankruptcy you can get a loan.
What information is reflected in the credit history and how it gets there
The borrower's credit history (CH) is a database that stores all records of current, repaid and overdue loans. When a bank receives a loan application, it first checks the CH. In it, the lender can find out detailed information about the credit behavior of a potential borrower:
how many loans, credit cards and microloans have been issued to him;
how many loan applications the borrower submitted and lebanon mobile database how many of them were rejected;
does he make payments regularly;
are there any overdue debts on credit products;
whether he has any court claims not related to loans, such as debts for housing and communal services or alimony.
Based on the data from the CI, the lender assesses its risks and makes a preliminary decision. When an application is immediately rejected, it means that the bank considered the data in the credit history unsatisfactory. The reason may be high indebtedness, current delinquencies and other CI factors.
Credit history is formed and stored in a special organization - a credit history bureau (CHB). Data is sent to the CHB when creditors report it. The borrower has submitted a new application - an entry in the CHB. Made another payment on the loan - another entry in the CHB. Allowed a delay - another entry in the CHB.
What information is reflected in the credit history and how it gets there
The borrower's credit history (CH) is a database that stores all records of current, repaid and overdue loans. When a bank receives a loan application, it first checks the CH. In it, the lender can find out detailed information about the credit behavior of a potential borrower:
how many loans, credit cards and microloans have been issued to him;
how many loan applications the borrower submitted and lebanon mobile database how many of them were rejected;
does he make payments regularly;
are there any overdue debts on credit products;
whether he has any court claims not related to loans, such as debts for housing and communal services or alimony.
Based on the data from the CI, the lender assesses its risks and makes a preliminary decision. When an application is immediately rejected, it means that the bank considered the data in the credit history unsatisfactory. The reason may be high indebtedness, current delinquencies and other CI factors.
Credit history is formed and stored in a special organization - a credit history bureau (CHB). Data is sent to the CHB when creditors report it. The borrower has submitted a new application - an entry in the CHB. Made another payment on the loan - another entry in the CHB. Allowed a delay - another entry in the CHB.