Why you should value your personal credit in China?

Posted by zaiwu 20/12/2018 0 Comment(s) Doing Business in China, Fun & lifestyle & Chinese culture,

Why you should value your personal credit in China? This is very important in China


In agricultural society, credit is only present in the brain. Zhang San is credited and Li Si is not credited. These are all derived from the general judgment of others’ words and deeds.

After the industrial revolution, the financial industry began to develop. Credit rating agencies were born and credits began to digitize.


In the business sector, the United States has three major rating agencies: Standard & Poor’s, Moody’s Investment Services, and Fitch Ratings International. They rate companies and institutions.


In the personal field, this credit agency FICO is very important! Its Chinese name is Feihezhe. It uses various methods to judge a person’s credit and score points.
In general, it scores between 300-850 points. Below 620 points, if you go to a loan to buy a house and buy a car, the bank will ask for a guarantee or even reject you directly.

More exaggerated is that many companies also call FICO when recruiting. Even if you have a lot of knowledge and skills, but if the score is not enough. They will say, “I’m sorry, we can’t admit you.”


Compared to the United States, China’s financial industry started later. Many people in China do not understand the “credit rating” issue.However, credit trends are becoming more apparent now: Credit ratings will become more and more important, and it will affect all aspects of your life.A few years ago, the network small loan company rises! Many people find that they can borrow money and they don’t have to pay back. Small loan companies do not have any tricks.Later, the small loan companies used data to communicate with the courts and the central bank, and many “old Lai-ren” were unable to do with high-speed rails and aircraft.


In China, the credit rating is mainly done by the central bank. As long as you search for “People’s Bank of China Credit Information Center” and enter the official website, you will be able to find your own credit history.However, in the central bank’s credit history, the main record is a breach of contract and there is no specific score. If you have many breaches, you should pay attention.Credit is like muscle, the more you use it, the stronger you are.


There is a saying that “Young people do not make credit cards,” and it is widely spread.But this concept is very wrong. why? Because your credit history needs to be cultivated.From the bank’s point of view, a person who regularly repays money on a regular basis every month has better credit than someone who never borrows money.The ancients said: When you have borrowed and returned, it is not difficult to borrow again. By borrowing money to pay back, the trust between people has been deepened. Institutions also have your data and naturally believe you more.

Therefore, not only can you enjoy an interest-free loan but also enhance your trust record if you have a suitable credit card, it is a matter of “killing two birds with one stone”.


If you borrow the money from the bank, you must return it in time. More importantly, don’t use “phased repayment” every time you pay the full amount.Although it is shown that the installment interest rate is very low, I believe that the actual annual interest rate for borrowing exceeds 10%.This is where the bank thief comes in. They use another set of methods for recording information.


  Build your “credit account”

The growth of people is the process of asset accumulation. Our assets include not only houses, cars, stocks, funds, but also an intangible asset, which is credit. Credit is getting more and more valuable.Why micro-business will fire? Many people find that instead of buying things from Taobao merchants, it’s better to buy from their friends. After all, friends are knowledgeable and trustworthy.There is a trust account between everyone and everyone else. You may not realize it, but it does exist.For example, there is a trust account between you and your boss, and the balance of this account is changing dynamically.You completed a job on time, account +10 points;You put forward a valuable proposal with a balance of +15 points;The boss is known to be doing a small trick on your back, with a balance of -20 points.When you establish a strong trust account with the people around you, whether it is the boss, colleagues, or family, your life and work will certainly be easier.


Credit is important. At a crucial moment, credit = money. But most people do not realize this.

Being a trustworthy person is not only related to morality, but also produces huge economic benefits. Why not?


Leave a Comment