The Importance of a Positive Credit History
what credit means to you
Kyrgyzstan is steadily undergoing a transformation from a cash-based to a modern economy, with a rapid increase in lending being a key component. Venders are beginning to accept payment by credit cards. Several banks now issue debit cards. Loans are available for real estate, furniture, computers, and automobiles, among other durable goods. According to best available estimates, more than 105,000 physical and juridical persons hold debt amounting to USD 205 million, exclusive of to pawn shops and other businesses selling goods and services on credit. The National Bank of the Kyrgyz Republic (NBKR), gives the following rates of growth in lending for the year 2004: MFIs, 80.80%; CUs, 55.30%; and non-bank lenders, 19.40%. Credits made by commercial banks rose 108.48% during this time period, from 544.470.000 to 1.135.110.00 som.
Simply put, in our era of globalization, your creditworthiness increasingly defines your economic opportunities. Persons and businesses without solid credit histories will be forced to buy with cash, which in the case of houses and cars can delay the benefits of ownership by years. More modestly, in the near future it is likely that telecommunications companies and utilities will require credit checks before opening accounts.
Ishenim therefore encourages everyone to take a responsible approach to credit, making and keeping to a budget that sets a realistic debt ceiling, and repaying all loan obligations on time. Moreover, it advises maintaining originals and/or copies of all documents for a period of at least five (5) years following fulfillment of loan obligations. This information will be necessary in order to correct errors in the event of a dispute with a lender over the contents of a credit history.
Kyrgyzstan is steadily undergoing a transformation from a cash-based to a modern economy, with a rapid increase in lending being a key component. Venders are beginning to accept payment by credit cards. Several banks now issue debit cards. Loans are available for real estate, furniture, computers, and automobiles, among other durable goods. According to best available estimates, more than 105,000 physical and juridical persons hold debt amounting to USD 205 million, exclusive of to pawn shops and other businesses selling goods and services on credit. The National Bank of the Kyrgyz Republic (NBKR), gives the following rates of growth in lending for the year 2004: MFIs, 80.80%; CUs, 55.30%; and non-bank lenders, 19.40%. Credits made by commercial banks rose 108.48% during this time period, from 544.470.000 to 1.135.110.00 som.
Simply put, in our era of globalization, your creditworthiness increasingly defines your economic opportunities. Persons and businesses without solid credit histories will be forced to buy with cash, which in the case of houses and cars can delay the benefits of ownership by years. More modestly, in the near future it is likely that telecommunications companies and utilities will require credit checks before opening accounts.
Ishenim therefore encourages everyone to take a responsible approach to credit, making and keeping to a budget that sets a realistic debt ceiling, and repaying all loan obligations on time. Moreover, it advises maintaining originals and/or copies of all documents for a period of at least five (5) years following fulfillment of loan obligations. This information will be necessary in order to correct errors in the event of a dispute with a lender over the contents of a credit history.
