HOW TO CHECK PERSONAL CREDIT POINT WHEN BANK LOANS

Actively checking your credit score helps you know if you have bad debt, thereby assessing your ability to get a home loan from a bank for your loan profile and take measures to improve your credit score.

Recently, many people have been fake ID cards by bad guys, taking advantage of the simple online loan approval process to borrow money, or some people are slow or do not pay their previous loans on time, leading to needing money to buy loans. but was rejected by banks, and credit institutions because of bad debt on CIC.

Therefore, self-checking your credit score helps you know whether you are in the bad debt group.

What is CIC?

Banks in Vietnam have an interconnected credit information system called CIC. In essence, CIC stands for Credit Information Center or Credit Information Center under the State Bank of Vietnam, which is responsible for collecting, storing, analyzing, processing, forecasting credit information, serving credit information, and serving customers. services for the management requirements of the State Bank.

Simply put, CIC is like a record book of bank loans of individuals and businesses, and at the same time allows banks to access information when appraising loan documents.

What is bad debt?

Many cases of home loans, installment loans, and unsecured loans ... have been approved by the bank, but the payment is delayed or non-payment makes personal credit score low, making it difficult to borrow again the next time. The bank will classify the above debts as bad debt or bad debt.

Information on loans of customers who have borrowed will be divided into 5 different groups on the CIC system:

Group 1: Standard debt group. These are debts that CIC assesses as being able to fully recover both principal and interest on time. Borrowers who are overdue for repayment from 1-10 days are still classified in group 1 but will be subject to an interest penalty.

Group 2: Group of debts that need attention, including customers whose debts are overdue from 10 days to less than 30 days and debts that need to be rescheduled for the first time.

Group 3: Group of sub-standard debt, including:

• Customers pay debts that are overdue from 30 days to less than 90 days.
• First-time rescheduled debts are overdue for less than 30 days according to the first rescheduled repayment term.
• Customers are entitled to reduce interest rates or exempt from paying interest due to their inability to pay as previously signed credit contracts.

Group 4: Group of debts suspected of losing capital, including:

• Customers have overdue debts from 90 to less than 180 days.
• First-time rescheduled debt is overdue from 30 days to less than 90 days according to the first rescheduled repayment term.
• Debts restructured repayment terms for the second time.

Group 5: Debt group likely to lose capital

• Customers who are overdue for payment by 180 days.
• First-time rescheduled debts are overdue from 90 days according to the rescheduled repayment term.
• Debts which are rescheduled for the second time are overdue according to the second rescheduled repayment term.
• Debts that are rescheduled for the third time or more, even if they are not overdue, are still classified as potentially losing capital.

Bad debt on CIC is very important, it can affect the honor and interests of any individual. Therefore, before taking a bank loan, homebuyers should check their credit score and try to pay off all debts and penalties, if any, to improve their credit score, then continue to apply for a loan. bank loan.

Instructions on how to check personal credit score

Currently, looking up CIC is completely free, you can do it online by following the instructions below.

Step 1. Log in to CICs website https://cic.gov.vn/ and click register in the top right corner (if you dont have an account) or click https://cic. gov. vn/#/register.

In this step, you need to fill in all important information fields such as full name, date of birth, phone number, ID card/CCCD number... Note, the ID card section needs to capture both the front and back. Items marked with an asterisk cannot be left blank.

Step 2. Complete information registration.

Step 3. When the information is complete, the system will send an OTP verification code to the phone number you have registered. You need to enter the verification code you just received and accept the terms.

Normally, you will have to wait 1 to 3 days for CIC to confirm the information you have just submitted. After that, the system will email you a notification about the information confirmation.

Step 4. Once the information is confirmed, log in with the username and password you just created

Step 5. At this step, you can conduct a CIC lookup.

In addition to looking up bad debt on the website, you can also download the CIC Credit Connect application on your phone through the App Store or Google Play and perform similar operations. For customers who are not used to working on computers, you can check your credit score by following these steps:

• Step 1. Apply for a loan at the bank and ask the bank to check your personal credit history.
• Step 2. The bank receives the loan request from the customer and checks the customers information.
• Step 3. The bank will base on the information provided by the customer, the bank will enter the data and check the credit history on the CIC system.
• Step 4. After the results are available, the bank will return the information to the customer.

Can I borrow money to buy a house with bad debt?

Customers must simultaneously meet the following conditions to be approved by the bank:

- Vietnamese citizens living and working in Vietnam;

- Age 18 or older and not more than 65 years old (depending on the bank, there will be different age regulations);

- Proof of income with corresponding documents such as payroll, bank statements, business households, rental real estate...;

- If the apartment is an installment loan, the mortgaged apartment must belong to the bank associated with the project investor;

- Credit history within the last 12 months has no bad debt of group 2 and the last 5 years has not incurred a bad debt of group 3, 4, or 5.

Thus, customers with bad debts in the last 60 months cannot get a home loan from a bank. However, in a few cases, the bank can still let go such as:

- There is a confirmation form of the lending bank due to a system error, error from bank staff...;

- Loans with a small amount of less than 50 million can be considered for a home loan;

- Have paid off all bad debts before making loan documents to buy real estate.

Can a wife borrow to buy a house if her husband has bad debt?

In the family, as long as the husband or wife has bad debt, the other person also has a hard time getting a home loan because banks and financial companies will check the household registration, the people in the household have bad debt or not. Are not. If your loved one has bad debt, it will also affect your ability to get a loan. However, if the salary of you or a loved one is high, the bank may consider a loan or if you have a red book and a bad debt mortgage, it can be approved even if the couple has bad debt.

How to write off bad debt?

Bad debt write-off is an important job to help customers increase their access to capital. To delete bad debt on CIC, customers need to work directly with the bank or financial institution that they have ground to pay off the principal and interest. Specific measures to improve bad debts and write off bad debts on the CIC system:

- Payment of loans under 10 million VND. The State Bank stipulates that overdue loans under 10 million VND that have been settled will be deleted from the credit history. Therefore, paying off small debts will help clean up your credit history.

- Next, arrange finance to pay off loans over 10 million as soon as possible. To write off bad debts of group 2, borrowers must pay both principal and interest to the bank for the most delayed payments. When the bank announces that the borrower has paid in full, from that day, month, or year to the next day, month, and year (ie 12 months later), group 2 debt will be automatically deleted on CIC. The way to write off the bad debts of groups 3, 4, and 5 is similar to the way to delete the bad debts of group 2. Specifically, from the date of payment (full payment) of the last bad debt arising, within 5 years after the customer is still fully closed. At that time, bad debts will be deleted on the CIC system of the State Bank and after 5 years, customers will be able to borrow again.

How to avoid bad debt

In addition to cases such as epidemics, natural disasters, or unexpected financial situations, we can actively prevent them by taking the following measures:

- Paying debts on time every month, debts are often reminded by banks early so that borrowers can arrange to pay before they are due.

- Pay debt online if you have to go on a business trip.

- Avoid borrowing on behalf of the household when borrowing because it is easy to get into bad debt.

- Pay special attention to how to use credit cards because many people have bad debt errors due to forgetting to pay credit cards.

- Regularly check personal credit score.

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