The basics of credit collection business

Credit collection is essentially a credit information service, which in practice is manifested as a specialized agency collecting, investigating, preserving, organizing and providing credit information of enterprises and individuals according to the law, and evaluating their creditworthiness, so as to satisfy the need for credit information of the agencies engaging in credit activities in credit transactions, and to solve the problem of asymmetry of information in the borrowing and lending market.

Credit collection system refers to a system consisting of laws and regulations, organizations, market management, cultural construction, publicity and education related to credit collection activities. The main function of the credit system is to serve the lending market, but at the same time has a strong extension, also serves the commodity trading market and labor market.

Credit agency refers to an agency established by law that specializes in credit collection business, i.e., credit information service, which can be an independent legal person or a professional department of an independent legal person, including credit information registration agency, credit investigation company, credit scoring company, credit rating company.

Credit collection business Also known as credit information service business, it includes credit record, credit investigation, credit scoring, credit report and credit rating.

Credit Record Also known as credit inquiry, it refers to the business of credit bureaus utilizing database technology to collect and summarize the borrowing and repayment history of enterprises and individuals and provide inquiry services.

Credit investigation Also known as credit counseling, it refers to the activities of credit bureaus accepting clients' entrustment and understanding and evaluating the credit status of the subject of investigation by means of information inquiries, interviews and on-site visits in accordance with the law.

Credit scoring A quantitative evaluation of the credit status of small and medium-sized enterprises and individuals based on information such as their repayment records, using mathematical and statistical methods.

Credit rating Also known as creditworthiness assessment and credit evaluation, it refers to the evaluation of the future repayment ability of business entities and corporate debts by credit bureaus by means of quantitative and qualitative analysis and labeled with simple and intuitive symbols.

Credit management is divided into monetary credit management and commercial credit management. It refers to the decision-making on lending and borrowing, credit sales, and other related activities based on sufficient information about the creditworthiness of enterprises and individuals, including credit granting, loan management, and collection of commercial debts. The credit information required for credit management is divided into internal and external information. Internal information refers to the first-hand information obtained by credit institutions themselves, while external information refers to the information obtained from professional credit information service organizations.

Credit information registry agencies are agencies that collect borrower credit information centrally to form a database through a combination of batch initialization and regular updating. The core data is the borrower's historical information on borrowing and repayment. Credit information registries generally only objectively reflect a borrower's credit history or credit status with raw data or through mathematical and statistical methods, and do not further analyze or judge the borrower. Credit information registries that are operated by the government are known as public *** credit bureaus; those that are operated by non-governmental organizations are known as private credit bureaus. The most significant operational difference between public and private credit bureaus is that the provision of information to the former is mandatory, while the latter is voluntary.

Types of credit data Any information that helps to determine the credit risk of a borrower should be the scope of data collection by credit bureaus. Generally speaking, the borrower information collected by credit bureaus mainly includes the following four categories: First, identification information, which mainly includes the name of the enterprise unit, organization code, registered capital, business scope, business address, personal name, identification number, date of birth, address, employment unit, etc. Second, indebtedness and credit behavior characteristics. The second is information on debt status and credit behavior characteristics, i.e., the borrower's current debt status and historical information on repayment. Third, information to judge the borrower's future profitability and ability to repay loans. Fourth, special information, such as court civil judgment information.

Value-added Credit Services Providing credit reports to customers is the basic business of credit bureaus. In addition, credit bureaus also provide services to their clients, including customized data, credit scoring, credit ratings, financial services business solutions, marketing services, fraud prevention services, and commercial debt collection.

Social Credit System:It refers to a general term for a series of arrangements for the promotion of credit commitment of all parties in the society, including various aspects or sub-systems, such as institutional arrangements, mechanisms for the recording, collection and disclosure of credit information, institutions and market arrangements for the collection and dissemination of credit information, supervisory systems, and arrangements for publicity and education, etc., with the ultimate goal of forming a favorable social credit environment.

(2) People's knowledge of credit collection

1, what is credit collection? Why do we need credit?

You borrow money from the bank, the bank wants to know who you are? Does it want to know if you will pay back the money on time? Have you ever borrowed money before, and do you have a record of borrowing money and not paying it back? And so on. To do this, you have to provide the bank with a whole lot of supporting materials: proof of unit, proof of salary, etc.; the bank's creditors will also have to call your unit, door to door visit ....... Two weeks, or even longer, before they will tell you whether to lend you money. The bank is really tired, you are also annoyed, borrowing money can be really troublesome.

Now, the banks know your credit status in a simple way: they will be in possession of their own credit information about you to a specialized agency to summarize the specialized agencies to you to establish a "credit file" (i.e., a personal credit report), and then provided to the banks to use. This activity of sharing credit information between banks through a third party organization*** is called credit collection, and is designed to improve efficiency, save time, and get your business done faster. When you borrow money from a bank, with your consent, the bank's creditors will first check your credit report, spend some time to focus on some issues, and then quickly tell you whether to borrow or not to borrow. The bank saves you the trouble.

In China, commercial banks obtain personal credit reports by exchanging information through the People's Bank of China Credit Center (hereafter referred to as the Credit Center).

2. What are the benefits of credit reporting to you?

Saving time. Much of the information that banks need to know is in your credit report, so they don't have to spend so much time investigating and verifying the authenticity of the information you put on your loan application form. So the first benefit of credit is that it saves you time and helps you borrow money more quickly.

Good borrowing. As the saying goes, "If you borrow well, it's not hard to borrow again." If your credit report reflects that you are a person who pays on time and performs seriously, the bank will surely like you and will not only provide you with credit services such as loans and credit cards, but may also give you preferential treatment in terms of amount and interest rate.

A reminder. If your credit report shows that you have borrowed money and not paid it back, the bank will have to be very careful when considering whether to give you a loan and will most likely ask you to provide collateral and guarantees, and may reduce the amount of the loan or raise the interest rate on the loan, or even refuse to give you a loan. If your credit report reflects that you have borrowed a lot of money, the bank will also be very cautious, fearing that you are too indebted to bear, and may also refuse to give you a loan. This reminds you to treasure your credit history and build up your credit wealth consciously.

Fairer. Another major benefit of credit is that it helps you get a fairer chance of getting credit. What the credit center provides to the bank is an objective record of your credit history, "letting the facts speak for themselves", which reduces the influence of the creditors' subjective feelings and personal emotions on the results of your loan and credit card applications, and allows you to get fairer credit opportunities.

3. Who decides if you can get a loan?

It's the banks and other credit organizations!

The credit center is only providing your credit report truthfully as one of the important references for banks and other credit institutions to decide whether or not to give you a loan.

(1) On what basis does a bank make a decision to give you a loan?

The main factors that a bank will consider when deciding whether or not to give you a loan are:

The bank's credit policy: i.e., the type of people a bank is willing to lend to. For example, some banks are willing to give credit cards to school students, while others are not. The bank's credit policy is determined by the bank's own management ability and market positioning, etc.;

Borrower's basic situation: such as workplace, residence status, income, etc.;

Borrower's credit status: such as your current level of indebtedness, and whether you have ever had a history of borrowing money that you did not pay back.

Other circumstances that the bank considers necessary for reference.

So your credit report is only one of the references to help the bank make a decision, not the only basis.

(2) What if a bank refuses to give you a loan on the grounds that you have a "bad record"?

If the bank refuses to give you a loan because you have a "bad record", you can ask the bank to tell you which of your bad records it is refusing to give you a loan for.

4, you understand the personal credit report?

(1) What is a personal credit report?

A personal credit report is a document that comprehensively and objectively records your credit activities and reflects your credit status. It mainly includes the following information:

Your basic information: This includes your name, identity document, home address, work unit and other basic information. This information tells commercial banks "who you are". You are reminded to accurately fill in your basic personal information and update your basic information in a timely manner so that commercial banks can make quick and accurate judgments about you.

Your loan information in the bank: When and how much you have borrowed from which bank, how much you have repaid, how much you have not yet repaid, and whether you have repaid on time.

Your credit card information: which banks you have applied for credit cards, credit card overdraft limit and your repayment record.

History of inquiries on your credit report: The computer automatically logs when, who and for what reason your credit report was accessed.

With the gradual progress of database construction, in addition to the above information, your personal credit report will also record your social security information, information on the opening of bank clearing accounts, information on the payment of personal housing provident fund, information on whether or not you have paid public **** utility bills such as telephone, water, electricity and gas bills on time, as well as information on civil judgments of the court, tax arrears and other public **** information.

(2) Who can view your credit report directly?

At present, other than you, only commercial banks can directly view your credit report when processing loans, credit cards, and other business and conducting post-loan management. Of course, once you have obtained your own credit report, you can also provide it to other organizations to see if you wish.

(3) How can you get your own credit report?

You can go to the credit management department of your local branch of the People's Bank of China, or make a written request to the credit center directly.

(4) Is there a fee for inquiring about a personal credit report?

The inquiry of personal credit report is a service provided to you by the credit center, so in principle, it needs to charge a certain cost, but at present there is no charge for the time being.

(5) How long will the information in the credit report be retained?

At present, there are no relevant regulations in China. Overseas, negative records are generally retained for 7 years, bankruptcy records for 10 years, positive records for longer, and inquiry records for 2 years.

5. What should I do if I make a mistake in my credit report?

(1) Why is there a mistake in a personal credit report?

First of all, you have to believe that no one would intentionally make a mistake on your credit report. The most likely reason for the error comes from four sources: First, when applying for a loan or credit card, you yourself provided incorrect information to the bank; second, someone else used all kinds of illegal means to steal your name to apply for a loan or credit card; third, when applying for a loan or credit card, the staff at the counter may enter your information incorrectly due to negligence; and fourth, the computer makes technical errors in processing the data for a variety of reasons. technical errors in the processing of data by the computer due to various reasons.

(2) What should I do if my credit report is wrong?

You can reflect the wrong information through three channels, requesting verification and processing: first, you can reflect it to the credit management department of the People's Bank of China in your local branch by yourself or entrusting someone else to do so; second, you can reflect it directly to the credit center; and third, you can entrust the commercial banks directly involved in the wrong information to reflect it to the institutions that handle the information.

If you dispute the final result, you can apply to the credit center to add a personal statement to your credit report. If you believe that the provision of incorrect information by the credit center has harmed your interests and you cannot get a satisfactory solution after reflecting it to the credit center, you can also reflect it to the Credit Reference Administration of the People's Bank of China or file a lawsuit with the court to protect your rights and interests by legal means.

(3) Will an error in your credit report affect your credibility for the rest of your life?

Errors may occur in your credit report and may cause you temporary inconvenience until the error is corrected, but once the error is corrected, the information will no longer be reflected in your credit report, and thus will not affect your creditworthiness for the rest of your life.

(4) What can you do to improve the quality of your credit report?

First, provide correct personal information to the bank when applying for loans and credit cards, and update your information in a timely manner. Second, you should always care about your credit history and check your credit report regularly. Third, when you find an error in your credit report, report it and apply for a correction.

6. Will the credit report violate your privacy?

No! We have taken the following five measures to ensure the security of your privacy:

Authorized inquiries. No one can see your credit report without your written authorization. Of course, if you've borrowed money from a bank or used one of its credit cards, that bank will be able to see your credit report without your permission: after the bank lends you money, it needs to be kept up-to-date on your situation to ensure that the bank's money is safe.

Limited use. The Interim Measures for the Administration of the Basic Database of Personal Credit Information (hereinafter referred to as "the Measures") clearly stipulate that, in addition to yourself, a commercial bank can only view your credit report when it handles loans, credit cards, guarantees and other businesses, or when it manages the money lent out or the credit cards issued.

Security. The database that stores your credit report is very secure. Your information is transmitted from the commercial banks to the basic database of personal credit information in the credit center through a confidential line without any human intervention in the process, which is automatically processed by the computer. The whole system adopts the most advanced computer anti-virus and anti-hacking management system in China, and its security is first-class in China.

Query records. The basic database of personal credit information also manages the credit personnel of commercial banks (i.e. database users) who view your credit report, and each user has to be registered. Moreover, the computer system automatically tracks and records each user's inquiries about your credit report, and displays them in your credit report.

Penalties for violations. The Measures clearly stipulate that if a commercial bank inquires about an individual's credit report in violation of the regulations, or uses the results of the inquiry for purposes other than those specified, it will be ordered to make corrections and fined from 10,000 yuan to 30,000 yuan; and if it is suspected of committing a crime, it will be handed over to the judicial authorities for handling in accordance with the law.

Tips: You are the best protector of your privacy. First, we remind you to pay attention to the authorization to inquire clause or other written authorization documents in the application form when you fill in the credit business application form. Secondly, we remind you to check your credit report regularly and judge whether there is any suspicious situation according to the inquiry records in your credit report. If you find any inquiry without your authorization, please report it to the credit center in time.

7. Do you understand the basic database of personal credit information?

(1) What is the basic database of personal credit information?

The basic database of personal credit information is an important infrastructure for the construction of China's social credit system, and it is a platform for enjoying personal credit information*** under the leadership of the State Council and organized by the People's Bank of China for the establishment of commercial banks, with its day-to-day operation and management undertaken by the People's Bank of China's Credit Reference Center. The database collects, preserves and organizes personal credit information, provides credit report inquiry services for commercial banks and myself, and provides statistical information services for monetary policy and financial supervision.

Tips: The basic database of personal credit information has been networked across the country, so as long as you have had a borrowing relationship with a bank, you can check your personal credit report at any commercial bank credit branch anywhere in the country.

(2) Do I need to apply to establish a personal credit record (join the basic database of personal credit information)?

No need. As long as you have gone to the bank to apply for loans, credit cards, guarantees and other credit services, your information will be automatically reported to the basic database of personal credit information through the bank.

A friendly reminder: You should not believe the illegal propaganda of other organizations in the society, and beware of being deceived.

(3) Do you know about the Credit Bureau?

The Credit Bureau is an internal organization of the People's Bank of China (PBOC), which was established in November 2003 to better carry out the responsibilities assigned by the State Council to the PBOC to "manage the credit and credit industry and promote the establishment of a social credit system", including undertaking the management of the credit and credit industry, formulating the development plan, management methods and risk assessment of the credit and credit industry, as well as the development of the credit and credit industry and the development of the credit and credit industry. Specifically, it undertakes the management of the credit collection industry; formulates the development plan, management methods and relevant risk evaluation guidelines for the credit collection industry; and undertakes the publicity and popularization of credit collection and financial knowledge.

8. What are the benefits of a good credit history?

(1) What are the benefits of a good credit history?

The biggest benefit of a good credit history to an individual is the accumulation of reputable wealth for the individual. Generally speaking, in order to ensure the recovery of loans, banks are only likely to give you a loan if you have provided sufficient collateral. If you have a good credit history, you are likely to convince the bank that you will repay your loan on time, and the bank will give you a loan even if you are unable to provide material collateral. Thus, a good credit history is like "collateral" that helps you get a bank loan.

(2) How to have a good credit history?

If possible, build your credit history as early as possible. A simple way to do this is to have a relationship with a bank, for example by applying for a credit card or a loan. It's important to clarify that not borrowing money from a bank does not mean you have good credit. Because without a credit history, banks lose an easy way to determine your creditworthiness.

If you have arrears, pay them off as soon as possible. You need to establish your own repayment (payment) plan, return your loans and credit card overdrafts in a timely manner, and pay your various fees and charges on time. Otherwise, the bad behavior will be faithfully reflected in your credit report, which will have an adverse effect on your personal credit.

If you do have negative information on your credit report, don't be discouraged. This information will be removed from your credit report after a certain number of years. The positive information will also be reflected in your credit report, and you can help commercial banks make an objective and comprehensive judgment about you by writing a good credit history.