Bank of Russia to set requirements for calculating personal credit ratings
All credit history bureaus (CHBs) will be obliged to use uniform approaches to calculating personal credit ratings. In particular, a single rating scale with the range of 1 to 999 will be adopted where higher rating will mean lower credit risk of the borrower. A respective draft ordinance was prepared by the Bank of Russia.
The document also stipulates the requirements for the composition of data to be disclosed when assigning a personal rating. To facilitate the comprehension of information about credit rating, it is planned to offer it in graphical form.
The amendments to the law on credit histories that make it possible for the Bank of Russia to set requirements for the calculation methodology and the composition of information disclosed by CHBs with regard to personal ratings are coming into force on 1 January 2022. Pursuant to the draft Bank of Russia ordinance, these requirements will be effective from 1 January 2022 for qualified CHBs and from 1 January 2024 for all other CHBs.
The uniform approach to the calculation and disclosure of personal credit ratings will boost the interest of individuals in building their credit history and receiving information about it and, as a consequence, improve financial literacy.
Personal credit ratings will be available for individuals along with credit reports (twice a year for free and unlimited times for a fee) but it will also be possible to receive it separately.