Credit history – is a dossier containing information on the solvency liability of the borrower, the amount of his appeals to the banks, as well as approved and paid loans. To be interested in such dossiers must not only financial institutions but also the client. Every year on the Civil Code and the laws dedicated to banking, any natural person has the right once a year on a free of charge basis to receive a credit report or an extract from the CH. Moreover, a request for such a report is advisory but not binding. Yet all analysts advise not to ignore the recommendations and contact the Bureau of credit histories every year. And here’s why.
Preparing for a large loan. Why should you ask for a credit report before placing your car loan or a mortgage?
The primary objective of the credit report is considered to be a summary of the history of all requests, issuance and repayments of loans of the person. In the submission will be displayed dates and sums, including the number of days of arrears, penalties and the presence of active loans. There are situations when small banks forget to transmit information about the closed loan. Borrower is listed as debtor. And only for this reason, that is at the study of solvency, he can be denied in mortgage or car loan. If you notice deviations and “oversight” of financial institution you should in advance call back there and ask to fix your credit history. Active loans will be closed, and the chance to conclude a new credit agreement will increase.
And it also happens that the lender sends the wrong information in the credit bureau. Data on namesakes are confused and the wrong citizen becomes debtor. To request a credit report in this case – means to detect errors and to regain the reputation of a responsible, loyal borrower in time. For this you will have to visit the bank that filed incorrect information about their customers and to write a statement on the revision of history and correct inaccuracies there.
Thus, the answer to the question “Why do I need a credit report” is the protection of credit reputation and your own financial well-being. Therefore each borrower is recommended to contact the CRB annually.
The world never stays still. It is constantly changing and developing. In the twenty-first century, it feels particularly dynamic: rapid growth of technology and globalization became an integral part of our lives. Each of us daily faces various aspects of technological progress and information exchange.
Separately it’s worth noting the financial sector as a standing on the front-line of technological progress. In the developed and developing world, it has long become synonymous with a dynamic and changing world and a symbol of global links between the countries and corporations. World’s leading research centers have already drawn attention to this relatively new segment of alternative finance market and are quite optimistic about its prospects.
How peer to peer loans are developed?
Р2P-lending is a mechanism of borrowing between the individuals through the special online-platforms. Its basic idea is that people can lend money to each other without the involvement of the financial institutions: banks, credit unions or microfinance organizations. The world’s levels of Р2P-lending already amount to tens of billions of dollars, and they grow every year.
How do p2p loans work?
Р2P stands for “peer-to-peer” or “person-to-person”. Future creditors and borrowers are registered on рeer2peer-platforms – Internet resources or programs, installed on smartphones, and conclude loan agreements right there. Unlike in banks, people arrange with each other about the debt stock, interests and maturities.
How to invest in p2p loans?
It works like this: investors and borrowers are registered in the system, after which the former get access to the requests placed by the latter. Investor can view them at any convenient time in search of advantageous offer, taking into account the interest rate, terms and rating of borrower. The latter depends on the data that the platform requests for each applicant in the credit reference bureau. The loan agreement is concluded with р2р-platform, which takes a commission for its services. As a rule, this is a % of loan amount. Both one and several persons can be the creditor on one loan.
How peer2peer loans are developed nowadays?
Such system is actively developing in the world. In this, one can borrow not only dollars or pounds, but also cryptocurrency. For example, some platforms of P2P credit allow one to borrow bitcoins.
How peer 2 peer loans key configurations of companies on Р2Р market act:
- online platform, requiring the mandatory registration of participants and allowing one to automate the search and selection of borrowers and creditors, reducing the level of cost. Most often all participants follow how p2p loans analog of credit rating is calculated, determining the interest rate and other conditions;
- classic intermediary, who provides the legal support of the direct lending transactions, focusing on the deposit as a way to minimize the risk. Intermediary is also responsible for the means test, expert real estate valuation and meeting of investor and borrower in real time at minimal cost.