If you have ever applied for a bank loan, then you will immediately begin to form a credit history, which will contain data on loans, repayment dates and overdue payments.
It is important to form and maintain a positive credit history. It is an indicator of your financial discipline and reliability for banks and microfinance organizations. Having a high-quality credit history significantly increases the likelihood of approving large loans, including for the purchase of a car or real estate, and also allows you to count on more favorable credit conditions.
This article explains how to check your credit history and what services to use to monitor it.
Your credit history is important not only for banks, but also for you. Having a positive history, you can easily take out a loan for a large amount. Conversely, if you paid on time or stopped paying on previous loans altogether, the bank may not approve the loan. If you have never taken out a loan, then there will be no records in your credit history. Such an empty credit history does not increase the chances of obtaining a loan, as the lender does not know your credit behavior and may not approve a large loan.
When applying for a loan, banks request information from credit bureaus. For example, you took out a loan and repaid it on time. This information is recorded in your credit history. Later, you apply for a loan from another bank, which sees that you have repaid the previous loan on time, and perceives you as a responsible customer. Any bank wants to be sure of the repayment of the issued funds and to lend to reliable people. That's why it's important to keep an eye on your credit history.
Question number 1. Question number 1. Is the receipt of deferred loan payments and social security payments reflected in the credit report?
Social security payments are not reflected in the credit history. Regarding the deferral of payments /prolongation of the term of the agreement, this information is transmitted by the Information Providers to the database of the credit bureau. At the same time, it is impossible to say for sure whether the prolongation of the contract affects the receipt of a new loan or not, since each lender (STB/MFI) has its own lending policy.
Question No.2. Can banks refuse to issue a loan if the credit history is "ruined"?
Yes, they can. The most common reason for refusing a loan is loan delinquencies, which are reflected in the credit history. A credit history is your borrower's file, which contains records of your credit obligations. When did you apply for a loan and for what amount? Did you pay on time or with a delay? Have you applied for loans from other banks? Were you a co-borrower or a guarantor? All this is transferred to the database of credit histories. When applying for a loan, the bank/IFOMFO requests information about a potential client from credit bureaus.
By the way, you may also be refused a loan, according to the internal policy of the bank/IFOMFO, as well as if there are unpaid fines, tax arrears, etc.
Question number 3. How do banks decide on a loan?
Before deciding whether to issue a loan, banks/MFIs assess the financial condition of a potential borrower to determine his creditworthiness, solvency, and financial stability. Banks holistically assess the stability and size of their clients' income. For banks, it is important to have an official income, continuity of pension contributions over the past six months, and the absence of other negative information found as a result of checking the borrower, collateral, etc.
Banks/MFIs also calculate the client's debt burden. If the total income of the client, taking into account the debt burden, is not enough to make payments on loans, the automated scoring system refuses to issue a loan.
Question number 4. Where should I contact if the bank refuses to issue a loan?
In case of refusal to grant loans to potential borrowers, it is necessary to contact the bank/ MFI for advice and clarification. If the bank/MFO was refused to consider your application and the dialogue with the bank/MFO was not effective, you can contact the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market:
• in writing to the Agency at the address: A15C9T5, Almaty, Koktem 3, 21;
• by e-mail: TAL@finreg.kz ,info@finreg.kz;
• through the mobile application "Fingramota Online" (download links in the App Store, in the Play Market, a web version is also available);
• through the electronic form of the "Feedback" section on the websites www.finreg .kz and www.fingramota.kz
* to the Offices of the Agency's regional representatives – by territorial affiliation.
Question number 5. How long is your credit history stored?
In accordance with the Law "On Credit Bureaus and the formation of credit histories in the Republic of Kazakhstan", the credit bureau ensures the storage of information regarding the subject of the credit history for five years after the date of receipt of the last information about him. Please note that the legislation does not provide for restrictions for Credit Bureaus to provide all available information at the appropriate expression of the Subject's will. Deleting borrowers' credit histories is not allowed.
Question number 6. Is it possible to fix a bad credit history?
You can improve your credit history by closing current or new loans without delinquencies. If you do not know in what order and what steps you need to take to improve your credit history, you can use the Revit service on the website of the First Credit Bureau to get recommendations from specialists and step-by-step instructions.
Additionally, the Credit Bureau may assign the "Rehabilitated" status to a loan (bank loan or microloan) that has been overdue for more than 90 days. However, it should be noted that the assignment of the "Rehabilitated" status does not guarantee the issuance of a new loan, since information about delinquencies remains in the credit history and lenders decide to issue a loan based on many factors.
The "Rehabilitated" status is assigned only if all the conditions in the borrower's loan agreement are met at the same time.:
• The loan was issued by a bank or microfinance organization;
• The loan was overdue for 90+ days;
• Information about the full repayment of the loan is displayed in the credit history;
• 12 months have passed since the loan was repaid;
• Other loans have not been overdue for more than 30 days within 12 months since the repayment date of the rehabilitation loan, or there were no other loans at all during this period.
If there are delays of 30 or more calendar days on other loans within 12 months from the date of repayment of the loan, which is being considered for assignment of rehabilitation status, such a loan is assigned the status "Not subject to rehabilitation".
The status is assigned automatically (i.e., an individual does not need to contact a credit bureau to undergo a rehabilitation procedure). It is worth noting that the "Rehabilitated" status is assigned to a loan agreement, not to an individual or a credit history.
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Question number 7. Is it possible to remove negative information from the credit history? Should I trust the organizations that offer this service?
If someone offers you to "improve" your credit history for a fee or remove negative information from your personal credit report, don't believe them – they are scammers! If you really had overdue debts, then this data can no longer be deleted from the credit bureau.
Also, there are cases when fraudsters take out loans using someone else's documents. Therefore, we recommend checking your credit history once a year, even if you do not have any loans.
By the way, according to the law, once a calendar year, every citizen of Kazakhstan can get his credit history for free: at a credit bureau, there are two of them: the State Credit Bureau and the First Credit Bureau, as well as online on the e-government website.
Information source – training website Fingramota.kz , implemented by the Department of Consumer Protection of Financial Services of the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan in order to increase financial literacy of the population.
By law, once a calendar year, every citizen of Kazakhstan can find out his credit history for free. If the request is repeated within one calendar year, the service is provided on a paid basis.
At the moment, we recommend using one of the following ways to receive the service online:
Through the website The First Credit Bureau or the 1CB mobile app.kz;
Through an online service Getting a personal credit report. Fill out the application, sign it using an electronic digital signature and you will be able to see the result in your "Personal Account".
In offline mode, the service is provided upon presentation of an identity card.:
If you have received a credit report and found incorrect information in it, you need to contact the information provider (Bank/MFO, etc.) and, if available, attach supporting documents.
You can also challenge information in your credit history using a separate free online service, Challenging information in the credit history of the First Credit Bureau on eGov portals.kz, 1cb.kz, fingramota.kz.
This service allows you to submit a statement challenging the information contained in the credit report you have received. After reviewing the application, you will receive an official response within 15 business days: about the changes made by the Information Provider to your credit history with a corrected credit report, or a letter confirming the correctness of the previously transmitted data to the credit bureau.
Also, to counter fraud and track changes in your credit history, we recommend subscribing to the online Credit History Monitoring service. If there are any changes in your credit history, you will receive a notification, and you will have the opportunity to promptly respond to fraudulent actions or an error by the Information Provider and take appropriate measures. You will also be informed about the amount of your debt, the appearance of a new loan or overdue payments. You can subscribe to the service on the portal and in the PKB 1cb mobile application.kz, as well as on the portal eGov.kz .
If you do not plan to receive loans, as well as if you suspect fraudulent actions on the part of third parties, you can use the PKB Voluntary Refusal to receive bank loans, micro-loans (Stop Credit) online service. This service allows an individual to establish a ban on making loans and micro-loans. In case of applying for a new loan, financial institutions are automatically informed about the current ban. You can subscribe to the service on the PKB 1cb portal.kz, as well as on the portal eGov.kz . At the same time, online connection and disconnection from the service are possible 24/7.