Note: The individual credit basic databank of the People’s Bank of China (PBOC) was formally put into operation in January 2006. To help the public learn credit knowledge and build a harmonious credit culture, CCB website republishes the Individual Credit Information Manual complied by the PBOC for its staffs and customers to learn credit knowledge and improve the ability of implementing credit policies.

I. What is credit information?

i. What is credit information? Why do we need credit information?

If you borrow money from a bank, the bank will need to know who you are and judge whether you are able to repay the money on time, whether you borrowed money before or whether you have the record of failing paying off, etc.

Prior to the emergence of credit information, you had to provide the bank with numerous credentials, such as the employer’s credential and salary credential, and the credit staffs of the bank had to call or visit your employer. It would take two weeks or even longer before the bank could tell you whether it would lend you money or not. It was exhausting for both the bank and you. To borrow money was a real headache.

But now things have changed. The emergence of credit information makes it easier for the bank to learn about your credit position. The bank transfers all the information it has on your credit position to a special organization where a “credit file” (or individual credit report) is established for you and used by various banks. Such share of information among banks through a third-party organization aims at raising the efficiency and saving time of providing you with related services. With the credit organization and the credit report, when you borrow money from a bank once again, the credit staffs, with your approval, will check your credit report, clarify some key issues and quickly tell you whether the money can be lent to you or not. It is beneficial both to you and to the bank.

In China, the Credit Information Center of the PBOC (hereinafter referred to as the Credit Information Center) is the special organization establishing your “credit file” and providing individual credit information for commercial banks.

ii. What benefits does credit information bring to you?

Saving time. Much information the bank needs to know about you is available in your credit report. Therefore, it will save time for the bank to investigate and check the truthfulness of the information you fill in the credit application form. The first benefit of credit information is saving your time and helping you get the loan quickly.

Making borrowing money easier. As an old saying goes, “It will be easy to borrow again if you pay off your debt on time”. If your credit report says you are a person making timely repayment and honoring the contract, the bank will surely welcome you. In addition to offering you credit services such as issuing credit card, the bank may also treat you preferentially in terms of credit limit and interest rate.

Credit alert. If your credit report records that you once failed to pay off your debt, the bank will surely consider carefully whether to lend you money or not. It is highly possible for the bank to ask you to pledge or offer guarantee, reduce credit limit, raise credit interest rate or refuse to lend you money. If your credit report says that you have borrowed a large sum of money, the bank might worry that you have too much debt and hence refuse to lend you money once again. Hence the credit information will remind you of cherishing your credit record and accumulating your own credit wealth.

Fair credit. Another major benefit of credit information is that it helps you get fair credit opportunities. The Credit Information Center provides an objective record of your credit history for banks. Facts speak for themselves. The feelings and emotions of credit staffs will have less impact on the result of your application for loans or credit card. Therefore you will be able to enjoy more fair credit opportunities.

iii. What is the different between credit and credit information?

Credit mainly refers to such economic activities as borrowing and repaying or consumption first and payment second, while credit information refers to the professional information services with the purpose of making borrowing easier for all. A third-party organization collects the individual credit information and provides such information for you and credit institutions whenever needed.

II. Who decides whether you can get the loan or not?

i. Who decides whether you can get the loan or not? The credit institutions or the Credit Information Center?

It is the credit institutions like the banks that decide whether you can get the loan. What the Credit Information Center does is to faithfully provide your credit report as one of the major references for banks to decide whether to lend you money or not.

ii. How does the bank decide whether to lend you money or not?

The bank mainly considers the following factors when making the decision on whether lend you money or not:

The bank’s credit policies: who is the favorite customer of a certain bank? For example, some bank is willing to issue credit cards to university students but others are not. The credit policies of a bank are decided by such factors as the bank’s management capacity and market positioning.

Basic information about the borrower: the borrower’s job, living standards, financial position, etc.

Credit information about the borrower: the borrower’s current debt; whether the borrower once borrowed money but failed to pay off, etc.

Therefore, your credit report is just one of the references for the bank to make credit decisions. It is not the only reference.

iii. What should you do if the bank refuses to lend you money due to your “bad record”?

If the bank refuses to lend you money due to your “bad record”, you can ask the bank to explain the details of your bad record or records.

III. Do you understand the individual credit report?

i. What is the individual credit report?

Individual credit report is your “credit file” which objectively and comprehensively records your credit activities, such as payment of the principal and interest of loans and the overdraft of credit card. It mainly provides the following information:

Your basic information: your name, ID number, address, employer, etc. Such information tells the commercial banks “who you are”.

Note: to avoid troubles, please do not lend your ID to others discretionarily because the ID number is an important information mark of your credit report. Please accurately fill in your basic information when applying banking services and contact the bank for any change in such information, which enables you to prevent ID fraud and the bank to check your identification.

Information about your bank loans: when you borrow how much money from which bank, how much have you repaid and how much remains unpaid, how about your monthly repayment, etc.

Your credit card information: name of the banks who issue you credit card, the overdraft limit of your credit card, your repayment record, etc.

Information about your bank settlement account: your name, ID number, bank code, opening date, etc. excluding the information on withdrawal and deposit, transfer and payment and balance of your settlement account.

Checking record of your credit report: the computer automatically records when and why your credit report is checked and who checked your credit report.

As the databank continues to be improved, in addition to the above information, your credit report will also record such information as the payment of your housing public accumulation fund, social security, timely payment of telephone, water, electricity and gas bills as well as other public information including the civil judgment of court and tax arrears.

ii. Can I read my own credit report?

Yes, of course you can.

iii. How can I check my credit report?

You need to take your valid ID card and personally go to the local credit information management agency of the PBOC or the Credit Information Center in Beijing.

iv. Should I pay for checking my individual credit report?

Checking individual credit report is a service provided by the Credit Information Center for you and in principal it involves a certain amount of cost. But up to now it is for free.

v. Who will have individual credit report?

Those who applied for loans, credit card and guarantee services.

vi. Besides me who can have access to my credit report?

The commercial banks can check your credit report when examining your credit application, but they must have your written authorization. If you have already borrowed money from certain commercial bank or hold the credit card of the bank, this bank can check your credit report without your written authorization. Of course, you may provide your credit report for other organizations out of your own will.

vii. Which institution presents the individual credit report?

The Credit Information Center of the PBOC presents the individual credit report. As an affiliated public institution of the central bank, the center is responsible for the daily operation and management of individual credit information basic databank, presents individual credit report and offers related services.

IV. What should I do if there is any mistake in my credit report?

i. Why does there exist mistake in my credit report?

First of all you should believe that nobody makes any mistake in your credit report on purpose. There might be four reasons for any mistake: first, you personally provide incorrect information for the bank when applying for loans or credit card; second, other people steal your information and use your name illegally in applying for loans or credit card; third, when processing your application for loans or credit card, the counter staffs of banks might carelessly make mistakes in inputting your information; fourth, for various reasons technical mistakes occur in the computer when processing data.

ii. What should I do if there is any mistake in my credit report?

You can ask for investigation and correction through three channels: first, you personally or entrust others to contact the local credit information center of the PBOC; second, you directly contact the Credit Information Center; third, you can entrust the commercial bank which has direct link with the wrong information to contact the Credit Information Center.

If you have different opinions on the final result, you may apply to the Credit Information Center for adding a personal statement in your credit report. If you think the wrong information offered by the Credit Information Center hurts your interest and fail to get a satisfactory reply after contacting the Credit Information Center, you may report it to the Credit Information System Bureau of the PBOC or file litigation to the court to protect your legitimate rights and interests.

iii. Will the mistake in your credit report influence your lifetime reputation?

The individual credit report might have certain mistake and cause temporary inconvenience to you before the mistake is corrected. But once corrected the wrong information will no longer occur in your credit report and hence not influence your lifetime reputation.

iv. What can you do to improve the quality of your credit report?

First, when applying for loans or credit card, you must provide the bank with correct personal information and update such information in a timely manner; second, you must keep a close eye on your credit record and check your credit report regularly; third, you must report and apply for correction of any mistake in your credit report.

V. Will credit information infringe your privacy?

The answer is no. We take the following five measures to protect your privacy.

Authorized checking. Without your written authorization nobody can have access to your credit report. Of course, if you have borrowed money from or used the credit card of certain bank, the bank can check your credit report without your consent. The reason is that after lending you money the bank needs to get your latest information to ensure its capital security.

Restricting the use. The Interim Rules on the Management of the Individual Credit Information Basic Databank (hereinafter referred to as the Rules) issued by the PBOC stipulate that besides you the commercial bank can check your credit report only when processing loans, credit card or guarantee business or managing its loans or credit card.

Information security. The databank where your credit report is stored is very safe. Your information is transferred to the databank through the special confidential network. The transfer is automatically processed by computer without any artificial interference. The most advanced computer antivirus and anti-hacker security system is applied so that your information is as secure as your bank deposit.

Checking record. The individual credit information basic databank also administers commercial bank’s credit staffs (users of the databank) who check your credit report. Each user must register. The computer system automatically tracks and records each checking of your credit report and displays the record in your report.

Punishment. The Rules state clearly that the commercial bank which violates related rules to check individual credit report or uses the checking results for purposes otherwise prescribed in the Rules will be ordered to correct and pay a penalty between RMB10,000 and RMB30,000 and that if any criminal case is involved the judicial authorities will interfere.

Note: you yourself are the best protector of your privacy. First, when filling in the credit application form please note the authorized checking article or other written authorization documents mentioned in the form; second, please check your own credit report regularly and judge whether there is anything wrong with your report according to the checking record. If you find any checking without your authorization please report it to the Credit Information Center immediately.

VI. What benefits will a sound credit record bring to you?

i. What benefits will a sound credit record bring to individuals?

The biggest benefit is to accumulate credit wealth for individuals. In general, the bank will possibly issue credit to you only after you provide sufficient pledge in order to ensure its loans are recovered. If you have a sound credit record, the bank may believe you are able to make repayment on time and hence lend you money even if you cannot provide material pledge. Therefore, a sound credit record is like a “credit pledge” and helps you get bank loans.

Furthermore, a sound credit record enables you to enjoy preferential financial services in terms of credit amount, term and interest rate.

ii. How to get a sound individual credit record?

If possible, please establish your credit record at the earliest date possible. The easiest way is to establish credit relations with banks. For example, you may apply for a credit card or borrow money from a bank. It should be made clear the fact that you do not borrow money from banks does not equal a sound credit. Without a historical credit record the bank looses the easiest way to judge your credit position.

If you have any outstanding payment, please pay off as soon as possible. You should establish your own repayment (payment) plans, repay your loan and the overdraft of your credit card and pay various fees on time. Otherwise, the default payment will be recorded in your credit report and have a negative impact on your credit activities.

If you have established a credit file, please take care of your credit record. Due to some unavoidable reasons, there might be some wrong information in your credit report. Once you find there is any mistake in your credit record, please contact the institution which presents the credit report as soon as possible to correct the mistake so as to avoid any negative impact.

VII. Do you have knowledge about the individual credit information basic databank?

i. What is the individual credit information basic databank?

The individual credit information basic databank is an individual credit information sharing platform established by commercials banks with the guidance of the PBOC. The daily operation and management of the databank is undertaken by the Credit Information Center. The databank is like a “credit information warehouse” collecting and storing individual credit information, provides commercial banks and individuals with credit report checking services and offers statistics information services for formulating monetary policies and conducting financial supervision.

Note: the nationwide network of the individual credit information basic databank has been established. So long as you have had credit relations with banks, you can check your credit report at any business outlet of any commercial bank nationwide.

ii. Do you need to apply for the establishment of your credit record (joining the individual credit information basic databank)?

No. So long as you have applied for loans, credit card or guarantee from the bank, your information will be transferred to the databank automatically by the bank.

Note: please do not believe the illegal publicity of other organizations so as to avoid to be cheated.

iii. Do you have any knowledge about the Credit Information System Bureau of the PBOC?

The Credit Information System Bureau of the PBOC is an in-house functional department of the central bank. Established in November 2003, the bureau is responsible for the management of the credit checking business.

VIII. Frequent misunderstandings

i. The individual credit information basic databank of the PBOC is actually a “blacklist”

Wrong! There is no “blacklist” in the individual credit information basic databank. The databank just accurately records your original credit information and produces your credit report without any subject judgment. It is a loyal “notebook” of your credit position without any good or bad remarks. Therefore, you do not need worry to be added to the totally fictitious “blacklist” for just one imprudence.

ii. One default will lead to lifetime “credit stain”

One default might have some impact on your credit activities within a certain period of time, but you should believe that the commercial banks will make reasonable and comprehensive judgment. The so-called “credit stain” will absolutely not follow you lifetime. According to foreign practices, a general negative record is kept for 7 years and bankruptcy record for 10 years. China will soon enact related laws and regulations. Therefore, never feel discouraged and have a new beginning now!

IX. How to contact us?

Credit Information Center of the People’s Bank of China

Address: 3A22 International Enterprise Building, Finance Street, Beijing.100032 China

Tel: 010-60247871/2

For more information on credit and related laws and regulations, please visit the official website of the PBOC at www.pbc.gov.cn.

X. Major events in the development of the individual credit information basic databank of the PBOC

i. December 2004  the individual credit information basic databank was put into trial operation.

ii. August 18, 2005  the 2005 No.3 decree of the PBOC issued the Interim Rules on the Management of the Individual Credit Information Basic Databank which was formally enacted on October 1, 2005.

iii. January 2006  the individual credit information basic databank was put into operation formally.

Note: To improve the quality of your credit report, please update your basic information in time.

The basic individual information in the credit report is a major reference for the commercial banks to judge your identity and check “who you are” and the first step for them to know about you. To more accurately and completely record your basic information in a timely manner, raise the quality of your credit report and help the banks judge your identity and credit position, we especially design the individual information updating form. Please correctly fill in and mail or directly submit the updating form to the bank.

You are the writer of your own credit report. Please cherish your credit record and enjoy a happy life!