There are fewer and fewer registered debtors on the Central Credit Information System (KHR, formerly BAR list) negative list, the World Economy found. By June, less than two million of those with passive status were on the list, down 123,000 from the end of 2016.
The number of outstanding debt, that is, the number of active KHRs, is also falling: 1.72 million in June this year, compared to 1.78 million at the end of 2016.
According to the paper, the reason for the decline since 2014 is that we are paying more and more loans, and secondly, because banks are getting rid of debts of non-paying debtors, so they are getting out of the KHR over time. On the other hand, even the 1.72 million active defaults are large, estimated to account for nearly a quarter of all retail credit agreements.
Can’t Stop Borrowing?
It is also telling that the other side of the balance sheet, the list of positive debtors, is constantly expanding, ie more and more individuals are on the list and more and more people are borrowing. In June, as many as 5,000 debtors were down to 5 million, up 14,000 from the end of last year. At the same time, the number of contracts is growing, reaching 9.57 million by June, of which 7.52 million were outstanding. David Brodsletter also asked domestic commercial banks about the booming lending; they were of the unanimous opinion that the upturn in lending would last until the end of 2018, and then a slowdown could follow.
The most popular loan products, according to statistics from banks and the Murray Bank, are personal loans and home loans: households have borrowed HUF 227.8 billion by May this year, which is 35 percent more than in the same period of the previous year.
Here’s how to get on the KHR list
Anyone who has a credit agreement will be added to the list maintained jointly by the banks. Banks use the system to filter out who the debtor is, and in the light of this, they offer an offer or refuse to lend. The system simultaneously protects banks from defaulting creditors and the customer from irresponsible borrowing.
There are several criteria that must be met before you can permanently cut yourself off from borrowing. The Bank’s 360 KHR Summary reveals that you must have over 90 days of overdue debt in order to be on the negative list of debtors. Do you still need credit? There is a credit institution that can help: For active and passive KHRs, Provident is worth a knock. And for the best constructions.