Before banks and microfinance organizations (MFOs) make a decision to issue a loan, they assess solvency and credit risks of a borrower. With this end in view, they use various scoring systems, which are based on information from the borrower's credit history.

Data for formation of a credit history and personal credit rating (PCR) are stored in credit bureaus. There are two of them in Kazakhstan – State Credit Bureau JSC (SCB) and First Credit Bureau LLP (FCB). These organizations receive information about loans, debts, delays and other financial obligations of citizens.

SCB is a state-owned organization, a subsidiary of the National Bank. All second-tier banks, MFOs, pawnshops, utility services, telecom operators, collectors and other credit institutions must provide data to SCB subject to the laws.

FCB is a private commercial company, and information is transferred to it on a voluntary basis.

Credit history formation and data sources

Information is entered into credit history not by bureaus themselves, but by data providers, i.e. banks, MFOs, as well as companies that sell goods and services on installment or credit. Also, other persons can enter information into your credit report if there is an agreement with the bureau.

Access to credit history and data verification

Potential borrowers can request their personal credit rating from the credit bureau to understand how lenders evaluate them. It is important to remember that financial institutions and other institutions can access the credit history only with a written consent of the potential borrower.

You should check your credit history regularly, at least once every six months. This way, you can control correctness of the information and make sure that there are no loans issued to you by third parties in your history.

Storage periods for information in the credit history

According to paragraph 2 of Article 14 of the Law “On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan,” a credit bureau shall ensure the storage of information regarding a subject of credit history for five years after the date of receipt of the last information about them.

In this case, period is counted not from the moment the loan is issued, but from the date of final repayment of the debt or settlement of the dispute. Even if you have already closed the overdue debt, information about it will be visible to banks and MFOs for several years and may affect approval of new loans. If the information is reliable, it is impossible to delete it ahead of schedule.

In order to maintain a good credit reputation, it is recommended to closely monitor your credit history, repay obligations on time and regularly check the report in credit bureaus. This will help to avoid unexpected loan denials and maintain a high personal credit rating. Remember that a responsible attitude to your financial obligations is the key to trust from creditors and the opportunity to receive favorable lending terms.

External Communications Directorate

press@finreg.kz

Source : https://www.gov.kz/memleket/entities/ardfm/press/news/details/1090150?lang=kk