Recently, Rohit, a registered borrower on LoanMeet platform, called us and told that his credit score is really bad. Right after the college, he took two credit cards and a personal loan, and then he did not pay the EMIs. He thought that he can walk away without paying the banks. Today (two years after he settled the personal loans), he understands the implications of late payments. He is unable to get personal loans from banks and NBFCs. For few individuals, the past never leaves them. Rohit can now only get Gold Loans, and he would need to purchase secure credit cards to improve his credit history.

Rohit shared his past credit history upfront. Many borrowers do not tell us the entire truth. Dilip, again a registered borrower on our platform, told us that his CIBIL is 750, and he has no payment delays. When we opened his credit history, we noticed that he even delayed Gold Loan EMIs. With help of credit bureau, most banks, NBFCs, and peer to peer lending platforms can tell past payment delays, settlements, and written off cases.

The big question is whether you need to check credit history to know about payment delays. If you have 12 months of bank statements, then it is possible to check whether EMI payments were made on time or not. You can always ask the person about his current and past personal loans. If he is hesitant about his answers and he is trying to avoid these questions, then you know that he is lying.

Even today, most money lenders do not check credit history to give personal and business loans. They do not even look at bank statements to make decisions. Instead of that, they rely on their gut instincts to make decisions. The money lenders prefer secured loans ( Gold Loans or Property Loans ), and they give unsecured loans to individuals they know or can easily get hold off. We at LoanMeet, a peer to peer lending platform, aim to use data to make credit decisions, and