How loans from microfinance organizations affect credit history
Posted: Wed Feb 19, 2025 3:37 am
Credit history (CH) actually reflects the history of the borrower's relationship with various financial institutions - banks, microfinance organizations (MFOs) and others. It is interesting that today even large chain stores offer products from different lenders - for example, when applying for installments for gadgets and household appliances. And there is a stereotype that it is loans that can negatively affect the borrower's CH. Let's find out how MFOs actually affect the credit history.
What influences credit history first and foremost?
First of all, the borrower's behavior and fulfillment of obligations to creditors. In particular, timely payment, level of interest in various financial products, frequency of their use. In the future, this data anhui mobile number database may be requested not only by new and existing creditors, but also by insurance companies, law enforcement agencies, potential employers.
It is interesting that the credit history displays both issued loans and applications received by financial institutions. The reports also contain decisions on them - approvals and refusals. And even if in the end you decided not to enter into an agreement. For some banks, frequent applications for loans and credits are a marker of financial instability of a potential borrower. Therefore, it is generally accepted that frequent applications spoil the CI.
How is a credit score calculated?
There are standard and individual rules. The latter are developed by banks in accordance with their policies and are not subject to disclosure. However, the standard criteria for forming the rating are always taken as a basis.
What influences credit history first and foremost?
First of all, the borrower's behavior and fulfillment of obligations to creditors. In particular, timely payment, level of interest in various financial products, frequency of their use. In the future, this data anhui mobile number database may be requested not only by new and existing creditors, but also by insurance companies, law enforcement agencies, potential employers.
It is interesting that the credit history displays both issued loans and applications received by financial institutions. The reports also contain decisions on them - approvals and refusals. And even if in the end you decided not to enter into an agreement. For some banks, frequent applications for loans and credits are a marker of financial instability of a potential borrower. Therefore, it is generally accepted that frequent applications spoil the CI.
How is a credit score calculated?
There are standard and individual rules. The latter are developed by banks in accordance with their policies and are not subject to disclosure. However, the standard criteria for forming the rating are always taken as a basis.