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Credit history

Credit history is the information on the obligations undertaken by the Customer. Credit history may have impact on credit decision-making and includes information aged at least 5 years.

Credit history includes:

• information on the amount of obligations assumed by the customer, the annual interest, the balance of obligations, the property pledged for them.
• history of payments for obligations assumed by the customer, including delays in payments from the established schedule.
• Guarantees given to other persons
• Information on obligations of related parties of the customer

The customer is entitled to get informed about his/her credit history by performing the actions indicated on the websites https://www.abcfinance.am , Frequently sked questions  or www.acra.am

When identifying errors and shortcomings in the credit history, the customers can inform the credit bureau to clarify and correct them or they can directly contact the financial institution that has submitted the information to the credit bureau.

Credit score

A credit score is the creditworthness assessment formed on the basis of information collected on the customer's obligations, which indicates the risk of loan recovery by the specified customer in a certain period of time.

The Bank uses its own scoring system to assess the creditworthiness of customers in the field of retail lending.

The score calculation is based on the following groups of factors:

• Credit history of the customer (delays in payments decrease the score)
• Information on the customer's employment and income (the latter’s absence decreases the score)
• Other social and behavioral factors of the customer (have both positive and negative impact on the score, depending on the type of factor and on how they are expressed)

Ways to improve the credit history and score

To improve their credit history and score, customers should do the following:

• make payments for their assumed obligations according to the schedule
• avoid credit overload and unsubstantiated new credit applications
• avoid providing guarantees to unreliable third parties.

• The Bank is entitled to conclude an agreement with the customer on other terms and tariffs different from those defined in this document.
• As a rule, any amount deposited into the account is directed by the Bank to the repayment of the amounts payable to the Bank at the time of the deposit by the Customer under the Loan Agreement, including commissions, penalties, interest, and the Loan repayment. The Bank has the right to carry out the repayment specified in this Clause in a different sequence.
  

• For the purpose of customer due diligence defined by the RA Law "On Combating Money Laundering and Terrorism Financing", the Bank may request additional documents or other information from the Customer based on the "Know Your Customer" principle, as well as during oral communication it may ask additional questions to the Customer (if there is such a request).

• According to the agreement signed with the USA based on the Foreign Account Tax Compliance Act (FATCA), the Bank may collect additional information to determine whether the Customer is a US taxpayer or not.

• Commissions subject to VAT taxation are also VAT-inclusive.