Credit history can block new loan approvals when it carries negative marks. An expert from the Russian Ministry of Finance’s NIFI program, Mikhail Sergeychik, spoke to socialbites.ca and outlined three common causes behind this issue.
The first major factor is existing debt from a previously taken loan. If payments were late, adjusting the borrower’s record can take substantial time and effort.
The initial step is to settle the outstanding debt. Some untrustworthy “fixers” promise to erase bad information for a fee, but those schemes are scams. Negative entries often remain for seven years, and a clean repayment record tends to restore trust with lenders much sooner if payments are kept timely thereafter.
Positive financial behavior, such as timely repayments and responsible credit activity, helps rebuild reputation over time as old transgressions fade in importance compared to recent conduct.
The second common reason for a worsening credit history is that information about debt repayment may not appear in the file. Sergeychik noted that this can result from technical glitches at a credit history bureau, an error at a bank, problems in the payment system, or human error. In such cases, individuals should contact both the credit bureau and the bank to correct the records.
To support corrections, it is advised to submit documents proving proper fulfillment of obligations. These can include payment receipts, loan repayment certificates, loan agreements, and related documents.
Another factor is credit activity that involves a loan taken from a third party or fraud. In such circumstances, it is essential to reach out to the bank and request that the loan be marked as not completed and that incorrect entries be removed from the credit history. Banks sometimes make concessions when they see weaknesses in their identification systems.
If the bank refuses to cooperate, the next step may involve legal action to rectify the credit record.
Credit history can be checked through the credit history bureaus, with lists of offices storing borrower information accessible via government services or the Central Catalog of Credit Histories on the Bank of Russia website. A free history report can be requested twice a year.
Historically, many Russians have asked how to use credit cards wisely and maintain healthy credit profiles. The guidance above emphasizes persistent, verifiable actions that can gradually restore a borrower’s standing in the eyes of lenders. Citations and official forms provide verification of records changes and the status of any disputes. In all cases, the emphasis remains on accurate information, timely payments, and transparent communication with financial institutions. This approach helps ensure that a consumer’s credit history reflects current responsibility rather than outdated issues. [Attribution: Ministry of Finance, NIFI program materials; Bank of Russia guidance; consumer credit bureaus guidelines]