What Is Credit History – And Why It Matters in Your Loan Approval?

Have you ever had your loan application rejected despite having a stable income? Or wondered why some people get approved quickly with better interest rates while others face more obstacles?

The answer may lie in your credit history – a critical factor that many people still underestimate.

Credit History: A Reflection of Your Financial Habits

Your credit history is a record of your past borrowing and repayment activities, including credit cards, personal loans, installment purchases, and more. In Vietnam, this information is managed by the National Credit Information Center (CIC).

The three main components of a credit history are:

• Credit Score: A score ranging from 300 to 900 – the higher, the better.
• Payment History: Have you missed payments, or consistently paid on time?
• Credit Utilization Rate: How much of your credit limit or loan capacity are you using?

Example:
A customer earning VND 25 million/month but with repeated late payments on a credit card in the past year may be considered high-risk, and their loan application could be declined.

Why Does Credit History Impact Loan Decisions?

1. It Indicates Risk Level

Most financial institutions use your credit score as a key factor when deciding whether to approve a loan, and how much credit to extend.
A low credit score (under 550) usually leads to rejection or reduced loan amounts.

2. It Influences the Interest Rate Offered

• High score (750+): Eligible for better interest rates.
• Low score: Higher rates or additional documents required to prove income or reliability.
• Visit the official CIC website: cic.org.vn
• Use the MyCIC app or visit a partner bank to request your score.
• Pay all bills, credit cards, and loans on time.
• Keep your credit utilization under 30% of your total limit.
• Avoid applying for multiple loans in a short time.
• Check your CIC report periodically for any incorrect information.
• Maintain a long-term credit relationship and use your credit card responsibly.

How to Check and Improve Your Credit History

Free Credit Score Checks:

• Visit the official CIC website: cic.org.vn
• Use the MyCIC app or visit a partner bank to request your score.

5 Tips to Improve Your Credit Score:

1. Pay all bills, credit cards, and loans on time.
2. Keep your credit utilization under 30% of your total limit.
3. Avoid applying for multiple loans in a short time.
4. Check your CIC report periodically for any incorrect information.
5. Maintain a long-term credit relationship and use your credit card responsibly.

Shinhan Finance – Your Trusted Credit Support Partner

At Shinhan Finance, we understand that each customer has a unique financial situation. That’s why we are committed to helping you improve your credit profile and access the right loan solutions.

Key Services from Shinhan Finance:

• Free application consultation: We analyze your profile and offer tailored solutions.
• Flexible loan options: From VND 15 million to VND 300 million, approved based on your income and current credit score.
• Fast disbursement: Approval as fast as 2 working hours (for complete and valid applications).
• Vietnamese citizens:
  • Male: 20–60 years old
  • Female: 20–55 years old
• Stable monthly income of at least VND 5 million via bank transfer
• No bad debts (non-performing loans) at the time of application
• Not eligible for loans based on utility bills or social insurance

Basic Loan Eligibility at Shinhan Finance:

• Vietnamese citizens:
  • Male: 20–60 years old
  • Female: 20–55 years old
• Stable monthly income of at least VND 5 million via bank transfer
• No bad debts (non-performing loans) at the time of application
• Not eligible for loans based on utility bills or social insurance

Financial Tip

Don’t wait until you need a loan to start caring about your credit score.
Think of it as your “financial health” – something that should be checked every 6 months to keep you in the best position to access funding when needed.

Want to know your current credit score?

Leave your information [here], and our Shinhan Finance team will contact you with a free consultation within 24 hours.

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