Loans and debt: borrow wiselyStep 1 of 6
Credit history: your financial reputation
What credit history and a credit bureau are, how they affect future loans, how to check yours and why guaranteeing someone’s loan makes it your debt.
An unexpected refusal
Elçin wants to buy a flat for his family and applies for a mortgage. His salary is good and his job is stable — but the bank says no. The reason: a few years ago he was several months late on an installment plan for a phone. Elçin forgot about it long ago. The bank didn’t.
How did the bank know?
Lenders pass information about customers’ loans and payments to a credit bureau. When reviewing a new application, the bank checks that history.