How to improve credit history?

About the scoring and credit history, we talked to Oleg Lagutkina, General Director, LLC Ekvifaks Credit Services. " - What is credit scoring and that is credit history? - Credit history - is a consistent description of the borrower's credit behavior. It contains facts on the history of payments, as well as information about the borrower. When it comes to high flow applications, banks use different scoring systems to reduce the time of the decision, give the man credit or not. One such technology assessment and credit scoring is based on the analysis of statistical data on credit histories. How does this happen? Let me explain. Analysis, a subject which, as I said, are credit history, can predict the behavior of the new borrower on the basis of conduct similar borrowers with the help of statistics. For example, if a credit history there is a small delay, then it does not mean that the borrower is poor, if the statistics of such borrowers' behavior suggests otherwise. Based on this analysis, the borrower is assigned scoring - point, talking about how much the borrower is reliable in terms of repayment of loans. The higher it is, the borrower for the bank more reliable. Such a system allows banks to decide in each case is much faster and more accurate than just based on credit history. - Increases or decreases the chances of scoring a borrower get a loan? - Yes and no. Depends on what scoring this borrower. High-scoring, of course, is the guarantor of that loan is likely to approve it, and vice versa. Moreover, the boundary of high and low scoring in each bank is determined individually, and above all, it depends on the conditions of issue and the size of the loan. For example, in the case of mortgages to borrowers requirements more stringent, rather than in the case of processing credit cards. - If scoring can accurately determine the creditworthiness of the borrower, can a bank customer to rely on a cheaper loan? - Again, depends on the bank because some banks use scoring is not to offer different terms to borrowers with different scoring, ie, reliable borrower better terms at low interest rates, and people with low scoring at interest, above the standard. Most often, scoring all the same applies to a decision in principle to extradite or not to grant credit. However, in some special conditions with banks for borrowers with high-or low-scoring meet. - What factors shape the scoring point? Can I, knowing the principles of the scoring models, artificially increase your score? - Principles of scoring models - proprietary information. Because, if we had been told about it in detail, that there would be full of speculators who, knowing the technology that would improve his score, and it already smells like further fraud, with whom we are fighting every day. I can say one thing, improve your credit history, you can automatically improve its scoring and score. And it can be done by following the schedule of payments loans without delays. - Are there any situations where the borrower has a low scoring mark, but a good credit history? And vice versa. - Generally no, but then again, that there is no single definition for all banks in respect of the "low scoring" and "good credit history." In various banks, these definitions may vary. - Credit history scoring system FPS. What "innovations" are scams to get around these barriers? - It would be nice for them to ask themselves. Obviously, the scammers are not asleep and are inventing new ways of cheating. In my opinion, the main reasons for the spread of credit fraud, no matter how trivial, are trusting and sometimes low financial literacy of our citizens. Sometimes people of goodwill in order to, for example, help the needy in a loan to a relative or friend, who gave his passport, which eventually issued credit. Or, fraudsters often use the name of the bank and offer by phone supposedly won a prize and a winner, "euphoria gripped the upcoming" gift ", said a false face all the data, which he asks. And this is just a few examples of how we ourselves make it easier for fraudsters to life. - Once a year every Russian can be obtained free of charge your credit history. Is there a similar service for information on his scoring points? Will the bank customers to know their scores on the Internet? - Yes, and our office is already working in this direction. - What advice can you give borrowers whose credit history was tainted? We are talking about cases where a bank customer, as they say, are to blame, and delayed payments. For example, on various internet forums people advise one another to take small loans and pay them quickly, so that credit history has improved. Are they right? - This makes sense, but there is also a "statute of limitations", ie should take some time, when information about delinquency "obsolete". Each bank's own term, but we are talking about a few years. In the office the same information is stored for 15 years. - Widely introduced a scoring system in the Russian banks? Is there already to date, any statistics? Almost all retail banks that issue a lot of credit, anyway, using scoring models. This is already the norm for the credit market. And I'm sure soon there will be banks that do not use the scoring. After all, besides the fact that it simplifies the system of evaluation of the borrower and reduces the time of this assessment, it allows the bank to reduce and human resources. The tendency is to fully automate these processes.