INFORMATION ON CREDIT HISTORY AND CREDIT SCORE

Credit history:
Credit history is a collection of data on the financial obligations of an individual or legal entity, which shows the history of the latter's financial obligations or their fulfillment.
The credit history includes data on 5 year-period prior to the date of inquiry, and is made from information on:

• Financing received, including:
• their number and amount,
• the amount, type, terms of each financing, the nominal interest rate applied by the creditor,
• the information on collaterals securing loan/financing.
• Fulfillment of loan repayments (for example, whether the interest and principal amount repayments were duly paid or not),
• Guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information regarding collaterals,
• Overdue days/amounts in terms of financing and guarantees, as well as the penalties and fines charged for them,
• Unpaid or late utility bills.

Credit history does not contain personal data, such as a person's ethnicity, religious and political views, social status, etc.

Credit score and the types of credit scores applied:
A credit score is an indicator that is formed on the basis of credit history and shows how responsible a given person is as a borrower.
In case of not having loans, the person cannot have a credit score.

"Converse Bank" CJSC applies the following types of scorings while providing a consumer loan through the "Automated decision-making system":

•  Bank's own score: Converse Score
• FICO Score /details can be found at the following link: 

Scoring is based on the following factors:

• History of loan repayments
• Length of credit history
• Debt/loan overload /number and type of existing loans/
• Number of new loan applications
• Personal income
• Collaterals for the existing loans

The influence of the credit inquiry on the credit score:
Depending on the type of credit inquiry, it may affect the types of scores used by the ACRA credit bureau - ACRA and FICO scores, as well as own scores applied by financial institutions.
Details regarding the purposes of the inquiries and their impact on credit score are presented in the table below:

The importance of credit history and credit score.
Credit history and score have great importance, before making a decision to provide a loan, the bank or the credit organization examines the applicant's credit history and evaluates whether the applicant is responsible as a borrower or not.
"Bad credit history" may be a reason for a bank to refuse a loan/financing.