The key facts

  • A credit history includes not only loans but also utility and telecom debts, alimony, and bankruptcy
  • Records are stored at bureaus for seven years, with the last five years having the strongest influence
  • The expert called offers to delete or wipe a history for money often fraudulent

What goes into a credit history

A credit history is a report on all of a borrower's debt obligations: active and closed loans, credit cards, borrowings, timeliness of payments and any missed payments. This was reported to the Izvestia newspaper by Magomed Gamzaev, Director of Financial Product Development at Sravni. According to him, the history may also include information on utility and telecom debts, alimony enforcement, court proceedings over financial obligations, and bankruptcy — creditors use all of this to assess payment discipline and risks.

How data is formed and stored

The history is built by banks, microfinance organizations and government agencies, which submit information to credit bureaus. Since there are several such bureaus, data on one person may be held simultaneously in several of them. The starting point is the first financial activity — taking out a loan, an installment plan or a card, or incurring a debt. Information is stored at the bureau for seven years from the last change, but events over the last five years have the strongest influence on the assessment of a borrower.

Recommendations and warnings

To maintain a good reputation, Gamzaev advised making payments on time, keeping monthly payments on all loans below 30% of income, not accumulating debts on utilities, telecom services, fines and taxes, and closing unneeded credit cards. He also said one should avoid acting as a guarantor or co-borrower on risky loans. For those just starting to build a history, he recommended a small credit card with the balance repaid within the grace period, or a small loan if genuinely needed. If missed payments occur, the debt should be repaid first, and in case of financial difficulties one should contact the bank in advance for restructuring or credit holidays. Separately, the expert warned: offers to delete or wipe a credit history for money often turn out to be scams — only erroneous information or data on loans a person never took out can be disputed. Regularly checking one's own history helps detect errors in time.