Restoring credit history
1. Analysis of the current state of credit history
1. Request a credit report.
Order a report from the credit bureaus (Unified Credit Bureau, UBKI, others).
Study: dates of requests, debt balances, delinquencies, closed and open accounts.
2. Identification of errors and inaccuracies.
Check each credit/card against your bank statements.
Prepare reasonable requests to correct or remove incorrect records.
3. Definition of bottlenecks.
Maximum overdue amount and duration.
Number of outstanding or overdue invoices.
Frequency of credit requests and refusals.
2. Correction of errors and correspondence with bureaus
3. Repayment of arrears and debt restructuring
1. Debt repayment plan.
Make a list of all past due liabilities with minimum payment and penalties.
Avalanche priority for loans with the highest% - minimizes the amount of overpayment.
2. Restructuring negotiations.
Offer the bank a new payment schedule with a reduced amount and an extended period.
Record the agreement in writing and receive confirmation of the schedule update from the bureau.
3. Auto payments and date control.
Set up auto-records 2-3 days before the deadline to avoid accidental delays.
4. Use of credit and construction tools
1. Credit card with a small limit.
Take a card with a limit of 2-5,000 ₴ and use it for 20-30% of the limit.
Repay the full amount every month - a history of timely payments is formed.
2. Credit Builder Loan.
The bank or fintech holds the amount on deposit, you repay the loan in equal installments.
Upon completion, you receive the amount and the report documents your good faith.
3. Car loan or consumer microloan with a small rate.
Only under the condition of full understanding and confidence in repayment - strengthens the story.
5. Regular monitoring and discipline
1. Monthly check of the report.
Track new records and the timeliness of updates to closed loan status.
React immediately to any new delay or error.
2. Compliance with credit application limits.
No more than 1-2 requests per year - frequent requests worsen the scoring score.
3. Commit changes to the progress table:
6. Strengthening the credit rating
1. Timely settlement of all current liabilities.
After going to zero, maintain a balance of less than 30% of the available limit on all cards.
2. Maintaining a "positive footprint."
Stable regular payments on utility and mobile accounts (this experience can be taken into account in some services).
3. Use of pledge or surety.
In the absence of other options - a loan against a guarantee or secured by a vehicle, with a categorical repayment plan.
7. Long-term strategy and rollback prevention
1. New financial habits:
2. Periodic "financial audits."
Check the report every six months, adjust the strategy: add a credit-construction product or reduce the limit.
3. Avoidance of impulse loans.
Criterion: only for "important" needs and with a clear repayment schedule; no more than one new loan per six months.
Bottom line:
1. Request a credit report.
Order a report from the credit bureaus (Unified Credit Bureau, UBKI, others).
Study: dates of requests, debt balances, delinquencies, closed and open accounts.
2. Identification of errors and inaccuracies.
Check each credit/card against your bank statements.
Prepare reasonable requests to correct or remove incorrect records.
3. Definition of bottlenecks.
Maximum overdue amount and duration.
Number of outstanding or overdue invoices.
Frequency of credit requests and refusals.
2. Correction of errors and correspondence with bureaus
| Step | Action |
|---|---|
| Collection of documents | Statements, contracts, confirmations of debt repayment |
| Filing a request | Written statement to the bureau describing the error and attaching copies of documents |
| Review period | Up to 30 days - the bureau is obliged to check and make changes |
| Control the result | Get an updated report, make sure to delete or correct inaccuracies |
3. Repayment of arrears and debt restructuring
1. Debt repayment plan.
Make a list of all past due liabilities with minimum payment and penalties.
Avalanche priority for loans with the highest% - minimizes the amount of overpayment.
2. Restructuring negotiations.
Offer the bank a new payment schedule with a reduced amount and an extended period.
Record the agreement in writing and receive confirmation of the schedule update from the bureau.
3. Auto payments and date control.
Set up auto-records 2-3 days before the deadline to avoid accidental delays.
4. Use of credit and construction tools
1. Credit card with a small limit.
Take a card with a limit of 2-5,000 ₴ and use it for 20-30% of the limit.
Repay the full amount every month - a history of timely payments is formed.
2. Credit Builder Loan.
The bank or fintech holds the amount on deposit, you repay the loan in equal installments.
Upon completion, you receive the amount and the report documents your good faith.
3. Car loan or consumer microloan with a small rate.
Only under the condition of full understanding and confidence in repayment - strengthens the story.
5. Regular monitoring and discipline
1. Monthly check of the report.
Track new records and the timeliness of updates to closed loan status.
React immediately to any new delay or error.
2. Compliance with credit application limits.
No more than 1-2 requests per year - frequent requests worsen the scoring score.
3. Commit changes to the progress table:
| Indicator | Before work | After 3 months | After 6 months | Goal |
|---|---|---|---|---|
| Number of delays | 4 | 1 | 0 | 0 |
| Total debt, ₴ | 60,000 | 30,000 | 0 | 0 |
| Number of closed loans | 0 | 2 | 5 | 5 |
| Requests to CHB for the year | 5 | 2 | 1 | ≤2 |
6. Strengthening the credit rating
1. Timely settlement of all current liabilities.
After going to zero, maintain a balance of less than 30% of the available limit on all cards.
2. Maintaining a "positive footprint."
Stable regular payments on utility and mobile accounts (this experience can be taken into account in some services).
3. Use of pledge or surety.
In the absence of other options - a loan against a guarantee or secured by a vehicle, with a categorical repayment plan.
7. Long-term strategy and rollback prevention
1. New financial habits:
- Budget maintenance, financial goals, reserve account.
- Balance tracking, big spending planning.
2. Periodic "financial audits."
Check the report every six months, adjust the strategy: add a credit-construction product or reduce the limit.
3. Avoidance of impulse loans.
Criterion: only for "important" needs and with a clear repayment schedule; no more than one new loan per six months.
Bottom line:
- Building or restoring credit history is a multi-stage process: from correcting mistakes and paying off debts to careful use of "credit-building" tools and disciplined monitoring. A clear plan, regular monitoring and new financial habits will restore bank confidence and bring your scoring rating to a positive level.
