Author: Mohamed Sherif Abu Maysam
03/6/2018 12:00 am
Before the electronic credit exchange system was introduced into banking transactions, a credit record was critical to disclosing individual financial and credit transactions between multiple financial entities.
It is a checkbook that ultimately gives indications that help the bank or other banks decide to grant or reject a borrowing request The individual has this register, where all the individual's financial and credit transactions are recorded with the various banking entities.
All banks are keen to maintain this record to provide protection standards for the rights and money of their clients and to enable them to carry out their banking operations with ease, security and flexibility.
Therefore, building a good credit record will necessarily serve the clients of the financial institution and protect them from any attempt to blackmail or circumvent.
Decisions on credit processes, such as raising the credit ceiling or reducing interest rates or easing the terms required to borrow for those with a good credit record, and vice versa may happen with those who have an invalid credit record.
Although electronic systems are common in the exchange of credit information between international banks, the operation of the credit registry, which has been turned into an electronic record, has been ongoing to be a database of credit decision makers that distinguish bank customers in terms of obligation to pay installments due in their promise, Account for insufficient balance and reveal the biography of movements of exchange and circulation is not correct or marked in the box Bad dealings.
On this basis, this record is of great importance because it serves as a record of the history of exchanges, transactions and credit history, which gives both the bank and the customer a better view of the discovery of errors and problems.
Accordingly, the existence of this record and the adherence to its information will limit the uncertainty of credit risk.
The rates of arrears of debt or debts that are not to be collected in government banks are evidence of non-compliance with the data of this record, or the absence of such a record at all?