What is credit history? How to check personal credit history

Credit history represents the financial behavior and ability to repay loans of individuals or organizations in the past. At the same time, this is also an important basis for determining the ability to get bank loans in the future. So what is credit history and how to check this information? Please refer to the following article to find the answer!

1. What is credit history?

Credit history is detailed information about bank or financial institution loans of an individual or business. Accordingly, all transactions will be stored on the CIC system (Vietnam National Credit Information Center). 

Specifically, the CIC system maintains updates, statistics, analysis and processing of credit information including:

• Detailed information of the individual or business that owns the loan.
• Outstanding loan balance.
• Personal bad debt history in the last 5 years.
• Information and value of collateral assets mortgage loans.
• Credit rating information serves as a basis for determining the lending capacity of individuals or businesses. 

2. Why is it necessary to look up credit history?

Checking credit history plays an important role for banks and customers to serve the following purposes: 

2.1. There is a basis for the bank to decide to lend

Through checking credit history, banks gain general information about customers' current debts, bad debts, credit scores, etc. From there, the bank has a basis to make appropriate lending decisions. 

2.2. Have a reasonable spending plan to repay debt on time

Periodically looking up credit history information helps customers know about their credit balance and current credit score. Thanks to that, customers will have a reasonable spending plan to repay debt on time and improve their credit score.

 2.3. More convenient when applying for a visa

Some countries consider an individual's credit history to decide whether to grant a visa or not. Therefore, if customers have good credit history, it will be easier for them to apply for a visa. 

2.4. Promptly handle any unusual debts

Regularly checking credit history helps customers detect unusual debts in case bad guys take advantage of it to steal information and falsify loan documents. Thanks to that, customers can promptly have appropriate treatment plans, avoiding the risk of losing money for unknown reasons.