Credit history databases
Credit history databases are designed to collect and store information about a person’s obligations to the credit company. Such databases are used by both bank and non-bank lenders and any borrowers can find out about them. These databases are considered by credit issuers in a rather general way, because the loan is issued very quickly, but the banking specialists conduct a deeper study of credit history.
For credit lenders
Credit history databases serve as a tool for advising customer solvency, past liabilities and payment discipline. Several databases are available for Latvian lenders. The Bank of Latvia’s Credit Register in Latvia is the only official credit register governed by the Credit Register Act. This information system of the Bank of Latvia provides information on consumers who have received credits in banks registered in the Republic of Latvia, branches of foreign banks, companies providing credit risk services and insurance companies at least 140 EUR.
The Credit Register was established in 2008, supplementing the information previously available in the Bank of Latvia’s Debtors’ Register. The Bank of Latvia’s Credit Register is informative and it does not in any way prove the relationship between the client and the lender, as well as any kind of irregularities or debts. Good Lender is one of the largest debt collection companies in Latvia whose main objective has always been to protect the interests of creditors.
The debt collection process
The Good Lender database contains information on debtors and the state of the debt collection process. It was established in 2000, 5 years after the company was founded. Banking sector creditors have access to information from this database freely, but non-bank creditors need mutual agreement with the company. All non-bank lenders have their own private databases that collect customer information.
Private databases allow you to quickly find customer information and evaluate credit history. The members of the Latvian Non-Banking Lenders Association (LNKA) have a single database to make finding the necessary information even easier and the members of the association could cooperate.
Collaboration in this case means access to information
Because there are borrowers who are willing to borrow money from several lenders at the same time or to repay their previous liabilities. The main purpose of all credit history databases is to gather information about debtors so that debtors are called to help and have little credit as possible with bad credit history.
Therefore, anyone who is willing to borrow money should think about their ability to repay the loan so as not to damage their credit history on the eve when the money will probably be needed even more.