Your personal credit history is key to getting a loan or quick credit. Never heard of this term? Credit history consists of credit rating, financial liabilities, outstanding debt, payment history, interest in your data, and business relationships.
In short, it is the result of your financial awareness and accountability. Every Lithuanian citizen who has reached the age of majority begins to accumulate his / her credit history and its records are kept for ten years, so it is impossible to delete or otherwise delete them.
Negative credit history
If you are wondering why you should be concerned about your credit history, there are a few important points to note. Creditworthiness is particularly closely linked to your future because, for example, in order to qualify for a home loan, you will first be assessed by your credit history. Keep in mind that your credit history includes the amount of instant credit you have taken online, your credit for telecommunications, electricity, and other household services.
No need to worry if you are a few days late in paying back your instant credit or paying for services. Typically, negative credit history goes down when you are 30 to 60 days late in paying your debts. This means that if you repay your debts within a month, you will not have a negative record in your credit history. However, all financial liabilities are valued without reservation and you will be declared in default for 90 days after payment of your outstanding debt.
While not having a big impact on your loan, having a positive credit history is important because it can lead to other important benefits: lower interest or lower down payment, more flexible loan repayment term – there are some examples of how responsible borrowing and good solvency can help you.
Positive credit history
A few simple habits need to be followed to maintain positive creditworthiness. It is useful to check your credit history at least once a year. You can do it for free by visiting Creditinfo.lt website. It allows you to see your credits and a statement of your solvency by logging in through your e-bank.
In addition, knowing your credit history data will help you to confirm that all the data is correct because even here, errors sometimes occur. It is important to note that over-express online loans can cause a lender to be suspected of not being able to plan properly for their budget, which causes the poor allocation of regular loans.
Another important factor
Informing the right financial habits is prioritization. First, take care of your liabilities and repay your credit, as delays in doing so will be reflected in your credit history. Only when you repay your debts do you divide your budget for other personal purposes. Equally important is the information: if you do not cover your financial debts, you are automatically placed on the public list of debtors.
Credit history is just like your confirmation that you are a responsible and capable person, so even a simple list of all your financial obligations can help you get the budget right.
Start taking care of your creditworthiness and solvency, and run a responsible borrowing program to prevent it from becoming unavailable when you need it in the future. Become a financially conscious citizen.