The majority of the population, or 58%, has a good credit rating, and the pandemic has not significantly affected their ability to make on-time payments, while 34% of the bank loan would not be available at this time due to its low rating. credit, according to the statistics of the Credit Information Office (KIB). December, informs the bank “Citadel“.

During the pandemic, the proportion of late payments does not increase, on the contrary, late payments in all credit rating groups are lower this year than last year, according to KIB statistics, which assess trends of more than 60 days of delays in the payments of the people since July of last year. For example, in August this year, payments were late for the 13% of the population with the lowest credit rating and an incomplete percentage with the highest credit rating, while in August of last year, approximately double: 29 % and approximately 2%, respectively. On a scale from A to E, where A is the highest credit rating and E is the lowest credit rating, A currently has a credit rating of 31%, B – 27%, C – 9%, D – 10% and E – 24%.

“It is important that citizens understand the principles of credit rating, as well as the opportunities to improve it, as this will allow them to choose the most suitable lender and obtain the most favorable terms. Payments are often delayed by people with the lowest credit rating. , and additional borrowing is difficult. “A good credit rating means that when applying for a loan from the bank, a person will also receive a lower interest rate offer,” said Vladislav Mironov, a member of the board of Citadele Bank. He quotes the example that in the case of a very good credit rating, “Citadele” can get a consumer loan with an interest rate of 9.9%, but for a car loan – 7.9%. As a result, Citadele Bank has compiled recommendations and financial habits for a better credit rating.

Even the smallest loans matter

The credit score takes into account all existing and repaid bank and non-bank loans: credit cards, lines of credit, mortgage and consumer loans, as well as repaid assets.

Total credit liabilities

The total amount of total liabilities and their relationship to income is important to creditors. The guarantees should not be forgotten either. Notably, the credit rating will improve when a loan is repaid, while non-bank credit liabilities are highly valued.

All invoices are equally important

Payment history forms a large part of a credit score. There are no petty bills, and timely payment of both your home loan and your current electricity bill is equally important.

More is not better

Every credit card, even with a small balance, is like a separate loan. Five credit cards are five loans, so the need for each loan must be carefully considered.

Applications and objectives

Only apply for a loan when you really need it. Each new loan application affects your credit rating. For example, 10 loan applications a year show that you are desperately looking for an opportunity to borrow. Also choose the type of loan that best suits your needs. For example, a student loan and a credit card from a lender are more understandable than two consumer loans.

Understandable income

Credit rating can be improved by showing lenders a clear and transparent income structure. Family deposits or cash contributions will not be a sufficient basis for receiving a loan.

Keep track of your credit rating

Before applying for a loan, evaluate your own creditworthiness, for example, “Citadele” Homepage or KIB Homepage. If you are concerned that your credit rating is not what you expected, please contact us in person. You may have forgotten some obligations yourself or another repaid loan may not be recorded as paid off.