Question No.1. Is the deferral of loan payments and social benefits reflected in a credit report?

Social benefits are not reflected in a credit history. As for payment deferrals or extensions of the loan term, this information is submitted by data providers to the credit bureau database. At the same time, it is not possible to definitively determine whether such extensions will affect the approval of a new loan, as each lender (second-tier bank or microfinance organization) has its own credit policy.

Question No. 2. Can banks refuse to issue a loan if the credit history is poor?

Yes, they can. The most common reason for loan rejection is overdue payments, which are recorded in your credit history. A credit history is essentially your borrower profile, containing records of your credit obligations. When you took out loans and for what amounts? Whether you made payments on time or with delays? Whether you applied for loans at other banks? Whether you acted as a co-borrower or guarantor? All of this information is stored in the credit bureau database. When processing a loan application, a bank or microfinance organization requests data about a potential borrower from credit bureaus.

In addition, a loan application may be declined in accordance with the internal policies of the bank or microfinance organization, as well as in cases where there are outstanding fines, tax debts, or other liabilities.

Question No. 3. How do banks make lending decisions?

Prior to making a lending decision, banks and microfinance organizations assess the financial condition of a potential borrower to determine their creditworthiness, repayment capacity, and overall financial stability. They evaluate the stability and amount of the applicant’s income. Particular importance is placed on having officially confirmed income, the continuity of pension contributions over the past six months, and the absence of negative information revealed during background checks (including information about pledged property, etc.).

Banks and microfinance organizations also calculate the borrower’s debt burden. If the borrower’s total income, taking into account existing debt obligations, is insufficient to cover loan payments, the automated scoring system will reject the application.

Question No. 4. Where should you apply regarding a loan rejection?

If your loan application has been declined, you should contact the bank or microfinance organization directly to obtain advice and clarification. If your application has been declined by a bank or microfinance organization and your communication with them has not been successful, you may apply to the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan:

• in writing, at the following address: 21 Koktem-3, Almaty, A15C9T5;
• by email: TAL@finreg.kz, info@finreg.kz;
• via the mobile application “Fingramota Online” (available for download on the App Store and Play Market; a web version is also available);
• through the electronic feedback form in the “Feedback” section on the websites www.finreg.kz⁠ and www.fingramota.kz⁠;
• at the regional offices of the Agency, based on your place of residence.

Question No. 5. How long is credit history stored? 

In accordance with the Law “On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan”, credit bureaus store information relating to a credit history subject for five years from the date the latest information about that subject is received. Please note that the legislation does not impose restrictions on credit bureaus regarding the provision of all the available information, provided that the subject has given appropriate consent. The deletion of borrowers’ credit histories is not permitted.

Question No. 6. Is it possible to improve a poor credit history?

Yes, it is possible to improve your credit history by repaying existing or new loans on time and without delays. If you are unsure about the steps or sequence of actions required to improve your credit history, you may use the “Revit” service available on the website of the First Credit Bureau to receive expert recommendations and step-by-step guidance.

In addition, a credit bureau may assign a loan (bank loan or microloan) that had overdue loan exceeding 90 days the status “Rehabilitated”. However, it should be noted that assigning the “Rehabilitated” status does not guarantee approval of a new loan, as information about past delinquencies remains in the credit history, and lenders make decisions based on multiple factors.

The status “Rehabilitated” is assigned only if all of the following conditions are met:

• the loan was issued by a bank or a microfinance organization;
• the loan had an overdue period of more than 90 days;
• information confirming full repayment of the loan is reflected in the credit history;
• 12 months have passed since the loan was fully repaid;
• for other loans, no overdue payments exceeding 30 days have occurred within 12 months from the date of repayment of the rehabilitated loan, or no other loans were taken during this period.

If, within 12 months from the date of repayment of the loan under review for rehabilitation, there are overdue payments of 30 or more calendar days on other loans, such a loan will be assigned the status “Not Eligible for Rehabilitation”. 

The status is assigned automatically (i.e., an individual is not required to contact a credit bureau to initiate the rehabilitation procedure). It should be noted that the status “Rehabilitated” is assigned to a specific credit agreement, not to the individual and not to the credit history as a whole.

Question No.7. Can negative information be removed from a credit history? Should you trust companies offering such services?

If someone offers to “improve” your credit history for a fee or to remove negative information from your personal credit report, do not trust them, those are fraudsters! If you have actually had overdue debt, such information cannot be deleted from the credit bureau.

There are also cases where fraudsters take out loans using other people’s documents. Therefore, it is recommended to check your credit history at least once a year, even if you do not have any loans. 

For your information, under the law, every citizen of Kazakhstan is entitled to obtain their credit history free-of-charge once per calendar year from credit bureaus (State Credit Bureau and First Credit Bureau), as well as online via the e-Gov portal.