In particular, the survey highlighted that the majority of Czechs (70% of respondents) knows Credit Bureaus. Amongst them, middle-aged respondents with higher earnings and advanced education qualifications tend to be more informed about this topic, they are also keener on using multiple credit products at the same time (3 credit products). Their use of loans seems to reflect their credit experience and a certain degree of familiarity regarding different categories of credit. Moreover, considering the overall management of family expenses, they are willing to borrow more money in the future - not only to fulfil a current necessity.
The research highlighted that 2/3 of respondents have used only 1 type of credit product, mainly to get home loans or loans to purchase electronic equipment.
Credit requests were found to be strongly related to the purchase of long-term use goods such as houses or cars. Lower interest rates seem to encourage some citizens in asking for other loans, especially among those who have already applied for a mortgage or a loan. Moreover for half of those questioned, taking a loan represents the solution that will enable them to buy something they could not afford otherwise; while 32% of respondents point out that it “is normal or useful” showing an easier and more confident approach to the usage of credit products like leasing, mortgages, credit cards, etc.
Finally, regarding credit information hold by credit bureaus, the majority is favourable about the exchange of both positive and negative information by banks and financial institutions as a way to report each citizens’ reliability.
Peter Kucera, Executive Director and Vice-Chairman of the Board - CCB Czech Credit Bureau explained that: “…these results should lead people to broaden their perspectives about the positive role of Credit Bureaus. To build up consumer credit history through Credit Bureaus, on one hand gives consumers an easier and wiser access to financial products, on the other hand helps the financial and banking market to keep interest rates low by monitoring credit risk”.
