Information about Score and Credit History
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What is credit history?
Under the law of the Republic of Armenia “On Circulation of Credit Information and Activities of Credit Bureaus”, credit information is any information about the liabilities undertaken by the subject of information, which reveals the debts, payments, payment habits or any other information about the liabilities or the performance thereof (that are being taken into consideration by financial organizations upon the issuance of credits, as well as by manufacturing, selling and service providing organizations while making a decision on the realization of goods/services based on the principle of instalment payments).
Importance of credit history
A negative credit history recorded in the past may serve as grounds for the tightening of the terms of credit or the non-issuance thereof.
A credit report is a written or electronic document which contains credit information on the performance of the financial liability in relation to the subject of the credit information (natural person or a legal entity) and the entrepreneurial organizations taken over by the latter.
The report shall comprise data obtained as of the moment of the inquiry from organizations affiliated with ACRA and shall reflect credit data of the 5 years preceeding such an inquiry.
ACRA is a credit bureau collaborating with all the banks and credit organizations in the Republic of Armenia.
Types of the score being applied
The evaluation of credit worthiness in ARDSHINBANK CJSC involves the ACRA credit history, the FICO score mark and the Bank's internal screening mechanism.
What is a credit score mark?
A FICO score is a screening system processed jointly by the closed joint stock company (CJSC) ACRA Credit Reporting and Fair Isaac Services which, conducting a statistical study of the client's credit history, gives the digital mark of the credit worthiness of the client’s credit risk as a pivotal instrument for the dimensioning of the consumer crediting risk.
The corresponding information is available also at abcfinance.am and acra.am.
Main factors influencing the score
According to FICO score calculation model, the determiners influencing the score include:
1. Payment (redemption) history;
2. Credit burden;
3. Length of credit history;
4. Types of used loans;
5. New credit application.
The Bank's internal screening mechanism is influenced by
1. Information about bank and deposit accunts, transactions made therewith and information about transfers;
2. Information about credit history;
3. Information about income and employment history;
4. Information about family status and education;
5. Information about the ownership of immovable and movable property;
6. Information about the servicing of other liabilities;
7. Any other information characterizing the client.
Credit inquiry influence on the score mark
The number of credit inquiries may have a negative impact on the concise credit mark. If the inquiry is conducted as part of a monitoring, it does not normally have a negative impact.
How to avoid a deterioration of a credit history and a score mark?
1. To discharge the credit liabilities in a due manner without delays in accordance with the established schedule;
2. To avoid being a co-borrower and/or guarantor, etc. with respect to the liabilities of borrowers with a suspicous or negative credit history;
3. Upon making redemptions of credit liabilities through a payment terminal, to take into consideration the fact that payments made after 4:45pm, i.e. – the Bank's operational hour, are rescheduled to the next business/operational day and the payment is deemed made on the next day.
How to improve credit history and the score mark?
1. To redeem the overdue liabilities if any;
2. To discharge the credit liabilities in a due manner without delays, and to rule out even daily delays thereof;
4. To avoid being guarantors for non-trustworthy persons in the future.
Who to turn to in case of errors in the credit history?
Whenever the borrower’s credit history contains errors or incomplete data, the borrower shall:
1. pursuant to the clauses set forth in Article 20 of the law of the Republic of Armenia “On Credit Information or Activities of Credit Bureaus”, inform the credit bureau thereof or simply turn to the subject providing such information (the source of credit information). The notification may be arranged by way of submitting a corresponding written application to the credit bureau, or electronically, i.e. – in an online regime from the personal office My ACRA. The process of the acceptance/receipt and consideration of clients’ complaints (as submitted by ACRA), and the response thereto and the succession of actions shall be determined subject to the "Dispute Resolution Procedure" of ACRA Credit Reporting. Corresponding information is available also at abcfinance.am and acra.am
2. Turn to the Bank
• by sending a letter to the Bank’s official email address (office@ardshinbank.am)
• by contacting the Bank’s 24/7 call center (tel. 012222222);
• by submitting a written application/complaint/request at any branch of the Bank.
Important note
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IMPORTANT NOTE
THE BORROWER SHALL BE ENTITLED TO PREMATURELY PERFORM (REDEEM), IN FULL OR IN PART, THE LIABILITIES UNDER THE CONTRACT, IN WHICH CASE THE PRINCIPAL AMOUNT OF THE LOAN SHALL BE REDUCED IN THE AMOUNT BEING PAID; THE TOTAL COST FOR CREDITING THE BORROWER SHALL BE REDUCED PROPORTIONALLY. IN THAT CASE, THE INTEREST BEING ASSIGNED TO THE BALANCE OF THE PRINCIPAL AMOUNT OF THE LOAN AND THE MAINTENANCE FEE ASSIGNED TO THE BALANCE OF THE PRINCIPAL AMOUNT OF THE CREDIT SHALL BE SUBJECT TO DEDUCTION FROM THE TOTAL EXPENDITURE OF THE CREDITING. MEANTIME, IN THE EVENT OF EXERCISING ITS RIGHT STIPULATED HEREIN, THE BANK MAY NOT IMPOSE LIABILITY MEASURES
In the event of the non-performance or improper performance of his/her liabilities under the loan contract, the borrower may be stripped of his/her rights to the property being acquired and pledged.
In the event of a failure to fully redeem the credit liabilities at the expense of the pledge, the full redemption of the liabilities shall be made at the expense of the means and properties of the borrower and the pledgers.
In the event of overdue liabilities, the redemptions shall be made in the following sequence: expenditures made by the Bank with respect to the confiscation of the property pledged in a prescribed manner and other accounts receivable by the Bank on the part of the Borrower and/or the Co-Borrower (generated as part of loan contracts), the forfeit penalty settled for (accrued to) the overdue liability, the interest sum settled for (accrued to) the overdue Loan, settled (accrued) yet unpaid overdue interest sum, overdue loan amount, loan maintenance fee, fixed-term interest settled for (accrued to) the loan use, and the Loan amount.
The sequence for the performance of monetary liabilities may change at the Bank’s discretion without notice to the Borrower and/or the Co-Borrower.
The Bank undertakes to provide the contract proposal to the customer seven days in advance and grant a seven-day reflection period.
The Bank's MOBILE BANKING application enables features such as money transfers, loan redemptions, viewing of account balances and transactions, payments and numerous other transactions that can be accessed by clicking here
The loans shall be issued by using the Bank-approved standard-forrm contracts. In case of the acquisition and pledging of a parking lot, a separate loan and pledge contract shall be signed for the parking lot. The peldge (collateral) contract (contracts) shall be notarized. The pledge of the right to purchase an apartment (parking lot), the right to ownership and the Bank's right of pledge, and other property rights shall be subject to state registration
The information on companies conducting pledge evaluation shall be published on the Bank’s official website (www.ardshinbank.am)
ATTENTION:
The loan interests are accrued based on the nominal percentage rate. The actual annual percentage rate reveals the loan value in the event of the payment of the interests and other fees within the specified timeframes and in the specified amounts. For detailed information on calculation procedure of the actual annual percentage rate please visit the following link