The number of borrowers in Hungary is increasing, which is probably due to low credit rates. Few people know, but whoever borrows is on the KHR list. Many people think that only those who have defaulted are included in the KHR system. There are such and other misconceptions about KHR in the public consciousness. It is worth noting that one of the benefits of a positive credit history is, for example, that the debtor can declare how long he wants to keep his data in the KHR, which becomes available to banks using the KHR. Clients with a negative credit history are not allowed to make a statement and are subject to different rules.
KHR is definitely a useful tool for both customers and banks
The data stored in the KHR is updated every month. This is important so that when applying for a loan, financial institutions have up-to-date information on the prospective client and are able to make responsible lending decisions.
It is worth looking carefully at the cases in which a positive credit history can be stated, as it will certainly be beneficial in a new borrowing because the credit institution will see its credit history to date. Financial institutions can distinguish between the fact that the customer does not have any registered credit agreement and the fact that someone has a loan with another bank, but did not consent to view the contract details. All these are taken into account by the bank in its credit assessment.
Experience shows that clients with a positive credit history are valued by financial institutions. Customers who make their credit history available to KHR can benefit from the following:
- Lower interest rates. A good customer puts a lower risk on the credit institution and is therefore willing to lend at a lower cost.
- Credit assessment can be simpler and quicker, as proven good credit history can simplify the bank’s credit assessment and risk analysis process.
- There may be fewer declarations or documents to submit.
- The credit institution may offer a more personalized offer.
- Another benefit is that the positive credit information stored in the KHR can counterbalance, “put in perspective,” any negative information that may be recorded.
Be careful before borrowing
You should carefully review your credit terms. Use Logan’s loan calculator to find the best loan, no matter what the loan is. All you have to do is enter your data into the calculator, which is important to know that there are no obligations. The calculator lists the credit institutions that you may have a chance to borrow. After that, you just have to select the most attractive bid. Be careful not to take out a loan unless it is really necessary to avoid being on the KHR negative list.