Installment cards without credit history check

For what purpose do banks check borrowers' credit histories

The Credit History Bureau (CHB) system was first launched in modern Russia in 2004. Over the years, a unique database has been formed that is available to both banks and microfinance organizations. Under certain conditions, information from the CHB can be obtained by borrowers themselves as well as interested parties.

An installment card, as mentioned above, shares the same parameters as a credit card, so checking credit history is mandatory for banks, as is information about citizenship, registration in Russia, and employment. Credit history helps create an up-to-date borrower profile, based on which the bank makes a decision on whether to issue a credit line. Important conditions for approving an application for an installment card without a credit history check include:

• The size of the credit line.
• The interest rate that can be applied to the credit line under specific lending terms.
• Potential penalties for non-compliance with lending terms.

Thus, by analyzing information from the CHB, the bank can develop an individual program for a borrower who has either a bad or good credit history in the CHB database.

All the above indicators, with the exception of penalties, have a range indicator. This suggests that the size of the credit line may vary for borrowers who meet the same requirements when applying for an installment card. That is, if the maximum credit line is 300,000 RUB, only those with positive CHB performance records will receive this amount, while those with remarks in the CHB can count on the minimum installment card amounts, for example, 10,000-15,000 RUB. Subject to the terms of the agreement, the bank may subsequently increase the credit line unilaterally.

In most cases, when applying for an installment card, it is sufficient for the applicant to provide their mobile phone number and passport number. All other data is automatically checked against the CHB database.

 

Key focus areas of the bank's credit history check

Even if you provide information using only your passport, the bank will not be able to fully develop your profile due to the lack of necessary data from other sources and communication channels. In this situation, the only verification option remaining is a request for information from the Credit History Bureau (CHB).

Please note that when filling out the application form, the issuing bank asks for your permission to obtain information from the CHB, and you must check the box agreeing to the processing of your data. If you do not check the box, consider that the bank will not review your application under any circumstances. Thus, you must check the box and give your consent to the processing of personal data, allowing the bank at its discretion to request data from the CHB and obtain up-to-date information on your credit history.

Next, the bank automatically transfers and processes your application, making the final decision. Typically, standard data transfer and processing takes no more than 7-10 minutes. This time is sufficient for the automated system to process the application from the CHB.

If the bank is not satisfied with the borrower's credit history, the application will be rejected. Please note that applications are processed not by a human, but by a robot, so there is a possibility of error (in this case, you will have to independently request information from the CHB, then write to the bureau and ask to correct the error if you believe one exists).

After the issuing bank gives preliminary approval for the application, it is sent for verification directly to the application processing team. At this stage, the application is verified, and after a detailed review taking approximately 30-60 minutes, a final decision is made—to approve the application and invite the applicant to pick up the card at the branch or arrange courier delivery.

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Features of decision-making when issuing an installment card without a credit history check

As a rule, banks may refuse an installment card to a borrower without stating the true reason for the refusal. In this case, the bank recommends that the borrower reapply after 30 calendar days. During this time, the borrower has the right to:

1. Correct the credit history database (clarify information or correct it by paying off debts).
2. The borrower has the right to reapply to the bank for another program product.
3. May receive a different banking product with a credit line higher than the one originally requested.

When refusing to issue a credit card, banks will never state the true reason for the refusal. However, expert statistics show that 99.9% of all refusals are related to a bad credit history. Since automated application processing systems study the borrower's structure and profile, to reduce the rejection rate, the borrower will need to work on correcting the negative factors of a poor credit history.

Which installment cards have a high approval rate based on credit history bureaus

The most lenient lending terms are associated with QIWI Bank, which offers the "Sovest" installment card without an additional credit history check. The bank does not request official employment information at all.

The remaining banking products—"Halva", "Vmetodeneg", and "Home Credit Bank Installment Card"—have identical lending terms that are practically indistinguishable from one another. All credit institutions feature a two-stage borrower verification system, which is mandatory in accordance with the requirements of the Central Bank of Russia.

To protect yourself from negative information in the CHB, once a year any Russian citizen has the right to request general information from the CHB free of charge. If you need to obtain information again, you will have to pay a fee, and the cost varies. The average cost of a single request is 340 RUB.

How to avoid getting rejected when applying for an installment card without a credit history

Oddly enough, even if you have a good credit history, the bank may refuse to issue a banking product. A banking organization, despite a good credit history, has the right to refuse an installment card to a borrower based on the following criteria:

• There is a high credit burden, even though the borrower makes all payments on time, such as a mortgage.
• The borrower lives outside the territorial jurisdiction of the credit organization where the marketing campaign rules do not apply.
• The borrower has previously received an installment card from the same bank or another credit institution.
• The borrower does not meet the age requirement set for the installment card by the specific bank.
• The borrower lacks a permanent registration address, or lacks temporary registration outside the permanent registration zone.
• Other reasons.

The general credit history data parameter has a scoring scale that takes into account all possible borrower characteristics. Currently, under the law, the data retention period in the CHB is 15 years.

Remember that checking a borrower's credit history is mandatory for obtaining an installment card at your chosen bank. If the bank extends the application review period, it is likely because it needs to carefully verify the credit history information required to issue the installment card.