The security level of credit rating is divided into five levels: normal, concerned, secondary, suspicious and loss. Normal and concerned grades mean passing, and it is more difficult to apply for loans or credit cards after the second grade.
The five classification criteria of personal credit information are:
(1) Normal:
The borrower can perform the contract, and there are no factors that affect the borrower to repay the loan in full and on time. Financial institutions have a full grasp of the borrower's repayment ability, and the probability of loan loss is 0.
(2) care about:
Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment. If these factors persist, the borrower's repayment ability will be affected and the probability of loan loss will not exceed 5%.
(3) Secondary schools:
There are obvious problems with the borrower's repayment ability, and it is overdue from the beginning, so it is impossible to repay the loan principal and interest in full by relying entirely on its normal operating income. It is necessary to repay the loan by dealing with part of the borrower's assets or even implementing mortgage guarantee, and the loan loss rate has reached 30%-50%.
(4) Suspicious:
The borrower can't repay the loan principal and interest in full, even if the mortgage or guarantee is implemented, it will definitely cause great losses. In order to recover the loss of funds, financial institutions will use the collection team to reorganize, merge, merge and dispose of collateral of borrowers' assets to ensure the return of funds. Even if the labor cost is wasted, the debts due will be recovered, and the probability of loan loss is as high as 50%-75%.
(5) Loss:
The borrower has been unable to repay the principal and interest. No matter what measures and procedures are taken, loans will inevitably lose or recover a very small part of the funds. From the perspective of financial institutions, it is not necessary to keep it in the account of assets.
So many times, in order to avoid bad debts, the best way for banks and guarantee companies is to go through legal procedures to transfer and cancel bad debts. The loan loss rate accounts for 75%- 100%.
Score range:
The "digital interpretation" of personal credit report adopts the international leading scoring model development technology, and objectively and quantitatively predicts the default probability of credit subjects in the next two years by using the historical credit records of personal credit information system, and displays it in the form of "digital interpretation" value.
The purpose is to help credit reporting institutions to use credit reporting information more conveniently, quickly and consistently, so as to manage credit risk more accurately and effectively.
The Credit Information Center of the People's Bank of China has steadily improved the efficiency and stability of the "digital interpretation" query service by enriching the "digital interpretation" query channels and improving the scoring function.