According to official statistics, today 10% of our country’s population has a bad credit history. This means that every tenth resident does not cope with his debt obligations and does not pay a loan or a loan for more than 30 days. But nine people out of ten for three years never delayed payments for such a long time.
Experts report that of all defaulters, almost all opened a loan with a credit card. The rarest cases in which a prolonged lack of payments was noticed are bank customers who have issued payday loans.
As for borrowers who have open loans at the moment, the situation is somewhat better – less than 5% of people who have a long delay are recorded. Basically, these citizens decided to take a loan in cash or use credit cards.
Unfortunately, for people who have a bad credit history and they want to improve it, the statistics are not in their favor. The fact is that a certain trend has been noticed. Borrowers who have ever had long delays, more often than others have some difficulties with their debt obligations. For the lender, the most unfavorable client is a person who has been overdue for more than 90 days. If we turn to statistics, more than 15% of people with such “baggage” become bankrupt within a year after they have taken another loan.
If bad credit history – may not give credit
Reports that banking organizations are more often denied credit to people who have had earlier and, all the more, have at the moment delays of more than 30 days. This happens due to the fact that any bank at the time of evaluating the next potential borrower first of all calculates its risks, and it is clear that by serving such clients, the risk of not getting their money back is much higher. Therefore, if a person has a bad credit history, he contacts the small microloans organizations to take a loan because there are lower requirements for the borrower.
It is important to remember that credit history is an official document that reflects the responsibility and attitude to the money of its owner. A good CI will allow you to receive more substantial amounts on credit and under better conditions. Each person should monitor the state of this document, avoid negative entries in it and improve their score.