/Understand your credit history
Understand your credit history 2018-09-04T16:25:35+00:00

Understand your credit history

Every person creates their credit history by taking loans or signing billing contracts. These commitments, together with the habits of fulfilling them are reflected in a credit report. Find out where to get the report and what you should pay attention to!

The information contained in a credit report is available in credit registries. The biggest one is the registry of the Bank of Latvia; however, to get your report there, you have to go through quite a complex process. You can get it online only if you have an eID card and its reader. If you do not have those, an application has to be submitted and you can get the report at the Bank of Latvia. It is possible to send an electronic application with a e-signature, as well, then pay the postal expenses and get your report in the mail.

There are also private credit registries, for example, the Credit Information Bureau (manakreditvesture.lv), where everyone can view their credit report for free twice a year.

What should you pay attention to in the credit report?

Based on your credit history, a lender makes a decision whether and what kind of loan can be issued. Therefore, it is very important that your chances of a good offer are not jeopardized due to an error. Make sure all the information in your credit report is correct.

We suggest checking credit applications, payment history, whether the paid debts are shown as paid, if existing and ended loan contracts are recorded correctly, as well as, if all personal information provided is accurate.

If you notice an error, be sure to contact the company which has recorded false data about you and request them to correct it. If the company has provided accurate data, the error might have occurred in the credit registry. In this case the issue should be resolved with the credit registry.

Credit report summary makes the first impression

Just as in a job interview, the first impression about credit history creates the tone for further negotiations. The first thing on a credit report is the summary of your credit history. It contains credit score and information about missed payments.

Image 1: An example of a good credit history’s summary.

Image 2: An example of a bad credit history’s summary.

In case the credit score cannot be calculated, a justification is shown in the credit report. Justifications can be not fulfilling commitments, insolvency proceedings, payment violations of the borrower and guarantor.

Creating and maintaining a good credit history is a long-term process and anyone can miss a payment. If you find yourself in such situation, then pay the missed payment as soon as possible. Otherwise, the missed term and amount payable will only increase and keep affecting your credit history. If an insolvency proceeding has begun, note that, at least 3 full years have to pass after the process has been closed, for a lender to view your application.

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