Importance of Credit Score: Bad Credit Situation

In order to provide a more complete credit profile of the debtor, it was necessary to promote amendments to supplement the credit score with other information about the pledge or mortgage of movable and immovable property, about the compliance by the subject of the credit history of the obligations towards the national public budget.

A more complete credit history provides detailed information about a debtor's financial condition, and creditors have a clear picture of the size of the debtor's debt. Supporting responsible lending helps creditors and borrowers make decisions based not only on the ability to pay at the time of the loan application, but also on the ability to pay existing or past debts.

By exchanging both positive and negative information, creditors can make better lending decisions to prevent over-indebtedness of bad credit debtors with non-repayable debts, as well as to avoid cross-lending.

As a subject of credit history and credit score, currently, it can be the natural and legal person who receives a loan according to the credit agreement. According to the bill, it is proposed to reformulate the notion and complete the list of credit history subjects with other categories of people applying for a loan or are part of the credit agreement such as: individual entrepreneur, guarantor and / or other guarantors, including debtors, mortgages, debtors pledges etc.

Personal Data Protection

In the context of providing information, commercial banks, for example, currently collect directly from borrowers a significant amount of data and information on the financial situation and activity of the credit applicant necessary to assess its solvency and credibility.

Within the legal limits, it may take other measures in order to verify the veracity of the information submitted and, therefore, is responsible for the completeness and accuracy of the data provided to the credit bureau and for compliance with the rights guaranteed by law, in particular, personal data protection.

Every credit history subject has the right to receive a free credit history once a year and, where appropriate, to challenge, in whole or in part, the information contained in his or her credit history by submitting an application to the credit history office. or, if it considers that its request has not been satisfied, it must notify the National Financial Market Commission. So far, the NCFM has registered only one request for data correction, which gives us the right to find that the database is reliable.