What is a Credit Bureau?

credit bureau is implementing collection, processing, storage, supply of information concerning to financial obligations (credit information) of physical and legal entities, as well as provides credit reports based on this information.

Through Credit Bureau services every borrower (physical and legal entities) receives the opportunity to:

• create its own positive credit history and use it as an asset for getting credit and utilizing various financial services on favorable terms,
• successfully manage own financial obligations and be informed about overall process of debt service.

Credit Bureau services allow creditors (banks, credit organizations), as well as organizations selling goods or providing services by the principle of payment in installments (credit line) to prevent undertaking of extra duties, obligations by borrowers/clients and support for fulfillment of obligations in time.

What is a credit history?

Credit history is the credit information on borrower that describes debts, payments, payment habits of the subject of credit information or information on obligations or performance of duties (RA law ”On circulation of credit information and activities of credit bureaus”, article 11). It is used, as a rule, by financial institutions on granting loans, as well as organizations producing and selling or providing services during decision -making process on sale of goods / services by the principle of payment in installments (credit).

What is credit report?

A credit report is a document (paper or electronic) that contains credit information about person (physical or legal) and information regarding performance of its financial liabilities to financial institutions.
The report is based on data obtained from ACRA member organizations and reflects credit data for the last 5 years from the date of report inquiry.

What information contains credit report?

Credit report contains information on financial obligations and their fulfillment of the person. For more information you can visit the following link.

Credit report contains the following information:

• identification data,
• credit history,
• information from public data bases,
• information concerning inquiries.

Credit report does not indicate data related to person’s state of health, race, religious affiliation, ancestry, ethnic origin, social status, political views, membership in other associations, preferences, as well as the person’s income, except average monthly income.

The credit bureau does not include in the credit report:

• data, if the name (corporate name) and domicile (address) of the person providing information (Source) are not registered or included in the ACRA data base,
• credit information on the person for over than 5 years period preceding provision of credit report.

How long is my credit history saved?

According to provisions of Article 11 of the RA law ”On circulation of credit information and activities of credit bureaus”, credit information on the subject should not be included in credit reports provided by the credit bureau for over than 5 years period preceding provision of credit report.

Who may be informed on my credit history besides me?

In case of your written consent your credit history can receive organizations financial requirements towards you, such as granted loans in the form of receivables liabilities, or your employer – before while concluding employment contract.
Without your consent, the credit bureau is required by law to provide information to the Central Bank, as well as to the court – on the basis of a court decision.

How can I improve my credit history?

First of all, you have to fully repay existing past due loan (financial) obligations. It is also necessary to exclude the existence (even for one day) delinquency for current loans.

What kind of impact will my bad credit history have on getting loan in the future?

Previously demonstrated bad credit history may serve as a reason for toughening credit terms or rejecting loans at all. Such details are submitted to the creditor institution (bank, credit organization) credit or risk management policies.

Where and how can I learn about my credit history?

Any person (subject of credit information) can inquire his/her credit history from credit bureau by – getting a paper copy of his/her credit report from ACRA office or from Haypost nearest postoffice (representing relevant documents); or electronic version – subscribing to ACRA website  and using “online Self-Inquiry” service.

What are the sources of the credit history formation?

The sources of credit history formation are the member organizations of ACRA (banks, credit organizations, insurance companies, institutions performing credit sales, as well as state authorities providing information on subjects from public database to the credit bureau, defined by the Government of RA), that transfer credit information (data) concerning subjects.

Who are the members of the Credit Bureau?

All financial and non-financial institutions that issue loans, perform credit sales, provide telecommunication services, utilities, as well as state institutions, which provide data from public database, defined by the Government of RA.

Where to apply if the credit history is incorrect or there is a complaint against the Credit Bureau?

If there are incorrect or inconsistent data in borrower’s credit history, for clarification and correction the borrower, according to provisions of the Article 20, may notify the credit bureau or directly to information providing subjects (the source of credit information). The notification may be done by submitting a written request to the credit bureau or electronically online via MyACRA portal. Sequence of actions of customer complaints process concerning credit reports provided by ACRA is defined in the “Dispute resolution” procedure of “ACRA Credit Reporting” CJSC.

How borrower appears in a “black list”.

Notorious “black list” concept is popular in society, however, it does not exist. Banks or credit organizations due to late payments, depending on number of days, can classify the borrower as watched, substandard, doubtful, or lost, which in the future may cause rejection for new credit.

Does the credit bureau participate in the process of customer loans approval or denial?

No. Only the creditors, taking into account their risk management policies, are entitled to decide credit approval or rejection.

Can I authorize another person to receive my credit history?

Yes, in this case the authorized person must submit power of attorney certified by a notary and his/her identification documents. «SELF INQUIRY PROCEDURE».