Consumers enter the credit market for the first time
Getting started in the credit market is not always easy. Every year, tens of thousands of consumers apply for funding to domestic financial institutions for the first time, but not everyone borrows.
This year by mid-August about 24 thousand. consumers under 35 first turned to credit, banks, leasing, consumer credit companies, peer-to-peer lending platforms and other financial institutions for the first time, according to a study by Mano Ross Poldark, a credit history system.
Out of 24 thousand 38% of consumers who applied for credit for the first time this year were able to borrow. They entered into their first leasing, consumer credit, credit card, or other types of credit agreements with financial institutions.
There comes a time when stable wages
Through financial instruments, make it possible to have a car, home appliances or other goods ahead of savings. The first steps in the credit market must be rational and thoughtful. After all, we start building our credit history with our first credit. From this, the good or bad credit history we have in the future will depend on borrowing at higher or lower interest rates. This difference in interest rates on housing loans can increase up to several tens of thousands of dollars, ”says Andrius Bogdanovic, CEO of Ross Poldark, a credit bureau.
The study revealed that residents who opened their credit history report before borrowing for the first time were more likely to receive funding (41% of the contracts) than those who were not interested in their financial discipline CV before borrowing (37% of the contracts).
Most people in the country learn about their credit history
When they face a negative decision to grant a loan or sign a leasing agreement. The recipe to prevent this from happening is simple – you need to manage your personal finances responsibly. That is, to pay utility bills without delay, to settle accounts with various telecommunication or other service companies, to fulfill obligations under the credit agreement. It is regrettable that unscheduled execution of previous financial commitments may prevent access to better financing conditions, ”says expert of Finance.
According to the Agree Bank Institute of Finance, borrowing a home with a good credit history can save you interest in the tens of thousands of dollars. Borrowing a car worth $ 5,000 can save up to $ 500 and buying a car worth $ 10,000 can save up to $ 1,700.
The personal credit history report is free once a year. It can be viewed on the Mano Ross Poldark self-service system. The oldest resident, who opened his report for the first time this year, is 91 and the youngest 18. More than 218,000 residents are interested in their credit history in Lithuania.