With the goal of constantly improving service quality, ensuring accuracy, fairness and approaching international standards in assessing credit reliability, the Vietnam National Credit Information Center (CIC) has adjusted the credit scoring model and switched to a new credit score scale. This change may lead to changes in the number (specific scores) of borrowers on the system. To make borrowers completely assured and understand their rights, CIC provides more information about this adjustment.
1. Points are updated, applied uniformly and fairly to all customers
According to CIC, this agency regularly reviews and reviews credit behavior data to adjust the scoring model, with the goal of improving the accuracy and risk forecasting capacity of the entire system. In the economy in general and the credit market in particular, people's consumption and borrowing behaviors always change over time. An optimal credit scoring model cannot stand still, but needs to be "renovated" to most accurately reflect the reality of the market.
This is a periodic technical activity, not evaluating specifically with any specific customer. Therefore, there is no such thing as some people being "examined" more carefully or being evaluated according to different standards, all are adjusted on the same level, applying a new score range, to ensure objectivity, consistency and transparency.
In essence, model adjustment is not intended to reduce customer benefits, but to help the evaluation results reflect more accurately and consistently with actual data. Customers with good credit history, full and on-time debt repayment and maintaining reasonable spending are prerequisites for good scores and rankings.
2. CIC score is just a reference factor, not a final decision
One point to note to reduce customers' worries: credit scores and ratings provided by CIC are only reference information serving the risk management of credit institutions, not the sole basis for deciding on lending.
Whether or not a credit limit is granted, what interest rate, and what the borrowing conditions are, all are under the authority of each bank and financial company, based on the synthesis of many different factors such as income, debt repayment capacity, collateral, loan purpose, previous credit relationships and the separate risk policies of each organization at each time. Therefore, the score decrease after the adjustment does not automatically mean that customers will be refused loans or have higher interest rates applied.
3. What should customers do?
Faced with these changes, customers do not need to worry too much if they are sure they do not have overdue debts or errors in their records. However, to be more proactive, customers can:
● Carefully check personal credit reports on the CIC system to detect early if there is information distortion.
● If incorrect recorded data is detected (for example, the loan has been fully repaid but still shows outstanding balance), it is necessary to immediately contact the credit institution that reported that loan or directly with CIC for comparison and adjustment.
● Continue to maintain the habit of paying debt on time and managing finances healthily - this is still a factor that determines scores in the long run, regardless of whether the scoring model is updated or adjusted.
● Grasp the factors that affect your credit score through the exploitation credit report from CIC to continue improving your score.
In summary, the change in credit scores in this phase mainly stems from CIC updating the scale and assessment model on a large scale, rather than reflecting that customers suddenly become more risky. In the near future, CIC will implement a "credit score simulation" project based on customer credit records and a simulated environment, thereby helping customers grasp the impact factors to gradually improve their credit scores and ratings.
