What is a credit history and how do we build it?

If you are planning to make a commitment such as credit, loan etc., you should familiarize yourself with the concept of “credit history”. It turns out that it can have a very large impact on our financial future. Today we will consider why the negative history in credit bureau can be fatal and what happens if we do not have this history at all! Are loans and credits with bad credit bureau within our limits?

Building credit history

Building credit history

Let’s start by clarifying the term itself: credit history is simply information about bank loans, credit cards, credit cards etc. that we have or had “on our account”. Data on them is collected by credit bureau, i.e. the Credit Information Bureau. When do you get to credit bureau? If you have used similar products, credit bureau has information on how regularly they were repaid. How to check if I am in credit bureau? You can check your credit bureau history by downloading available reports.

So the question arises: how to make the history of credit bureau testify to me? First of all, you should pay all debts promptly and timely. Each loan with delays registered in credit bureau works to our disadvantage. What’s more, be prudent about making more debt. Think about whether you will actually be able to pay them easily.

Bad credit history

Bad credit history

Bad credit history and credit – are these two things related to each other? It is worth remembering that the credit history in credit bureau may be one of the factors that the bank will take into account when analyzing our loan application. Bad history in credit bureau does not give us, as a potential borrower, a good testimony. If we had or have any credit arrears, this is a warning signal for the bank. All loans and loans with delays in credit bureau work against us. Therefore, “negative” credit bureau is something to beware of.

Positive credit history in credit bureau

Positive credit history in credit bureau

It should be noted that in credit bureau we will find not only negative information, but also those that indicate how reliable borrowers we are. If all loans, credits, etc. were repaid on time, it will also be recorded in the credit bureau. credit bureau doesn’t have to be afraid – on the contrary, the Credit Information Bureau can become a tool that strengthens our position as a potential borrower. What does the lack of credit history mean? Specialists emphasize that in such a situation it is worth building it, especially if we plan to take a more serious step, for example a housing loan.

Loan with bad credit history – is it possible?

Loan with bad credit history - is it possible?

What if our credit history at credit bureau is not the best? Is a loan with bad credit bureau at all within our reach? Can we get a consolidation loan with a bad history in credit bureau or use any other type of loan? Customers whose history in credit bureau is not flawless also have a chance to get a loan or credit, it all depends on the individual practices of the bank.

Bad story in credit bureau and mortgage? Whether a bank will approve a mortgage application, if our credit history leaves anything to be desired, is determined not only by the internal rules in the institution, but also by how many “slips” we have in our account, what their nature is, etc.

SUMMARY: There is no doubt that taking care of your credit history is in our interest. The information that credit bureau has gathered creates a picture of us as a potential borrower and may influence the bank’s decision. Whether we will get a loan with a negative credit bureau after all is a very individual issue, dependent on a number of factors. So let’s be aware of how building a positive credit history affects our financial future.