For Legal Entities

•  Leasing application — original and copy
•   Passports and social security cards, or identification cards, of the founders, shareholders/participants, director and guarantor(s) — copies
•   Reference issued by the State Register of Legal Entities
•    Reference issued by the State Register of Legal Entities
•   Charter — copy
•   Certificate of ownership or lease agreement — copy
•   Licence, where the activity is subject to licensing — copy
•   Summary tax calculations for the previous 12 months — copies
•   Corporate income tax return — copy
•   Invoice or commercial offer issued by the supplier — copy
•   Original consent forms authorising ACRA Credit Reporting CJSC to obtain the credit reports of the applicant and guarantor(s)
•   Bank account statements for the previous 12 months — copies
•   Other documents, as required

For Individuals

•  Certificate of net salary and other documents confirming income, as well as certificates of ownership — originals
•  Documents confirming the income of family members, where the applicant’s income is clearly insufficient — originals and copies
•  Documents confirming the income of the guarantor(s) — originals
•  Original consent forms authorising ACRA Credit Reporting CJSC to obtain the credit reports of the applicant and guarantor(s)
•  Other documents, as required

Information on Factors Affecting Credit History and the Credit Summary (Score) Rating

1. What is a credit history?

Under the Law of the Republic of Armenia on the Circulation of Credit Information and the Activities of Credit Bureaus, credit information is information regarding the obligations assumed by a credit information subject. It reflects the subject’s outstanding debts, payments, payment behaviour, and other information relating to the obligations or their performance.

As a rule, financial institutions use this information when deciding whether to grant financing. Manufacturers, sellers and service providers may also use it when deciding whether to offer goods or services on a deferred-payment or instalment basis.

A credit history contains information about a customer’s financial obligations, including outstanding debts, payments, and the performance of those obligations.

For more information on credit history, please visit՝ www.abcfinance.am

2. Where should you apply if your credit history contains incorrect information or if you have a complaint against the credit bureau?

If a borrower’s credit history contains inaccurate or incomplete information, the borrower may request clarification or correction in accordance with Article 20 of the Law of the Republic of Armenia on the Circulation of Credit Information and the Activities of Credit Bureaus.

The borrower may notify the credit bureau or contact the entity that provided the information—the source of the credit information—directly. A notification may be submitted to the credit bureau in writing or electronically through the My ACRA personal account.

The process for receiving, reviewing and responding to customer complaints concerning credit reports issued by ACRA, as well as the sequence of the relevant actions, is governed by the Dispute Resolution Procedure of ACRA Credit Reporting CJSC․

3. What is a credit report and a credit summary (score) rating?

A credit report is a written or electronic document containing information about a credit information subject—an individual or a legal entity—and the performance of the financial obligations assumed by that subject towards business entities.

The report is compiled using data received from ACRA’s partner organisations and reflects the subject’s credit information for the five years preceding the date of the enquiry.

A credit summary (score) rating is a numerical assessment of a customer’s creditworthiness and ability to meet financial obligations, calculated on the basis of the customer’s credit history. For more information on credit score ratings, please visit՝ www.acra.am, www.abcfinance.am

4.  Credit information enquiries conducted by the Company

Based on the consent provided by the customer, ARMLEASING UCO CJSC (hereinafter referred to as the Company) may request information concerning the customer’s current and past financial obligations for the purposes of:

•  assessing the customer’s existing or proposed financial obligations towards the Company;
•  assessing the customer’s role as guarantor for the obligations of one or more third parties; and
•  considering the possibility of providing leasing or credit financing at the customer’s request.

The number of enquiries made for these purposes may affect the customer’s credit score, including adversely.
 

5.    Factors affecting the FICO score

For the purpose of assessing customers’ leasing or credit applications, the Company uses the FICO score.

Factors affecting the FICO score include:

• the quality of loan servicing;
• the existence of overdue payments in the credit history;
• the duration of payment delays;
• the customer’s overall debt burden;
• the length of the customer’s credit history;
• the types of credit previously used; and
• new credit applications.

For more information on the FICO score, please visit www.acra.am 

6.   How can you improve your credit history?

The first step is to repay in full any overdue obligations accumulated in the past. Customers should also ensure that no overdue obligations arise under existing credit arrangements, even for a single day.

To improve a credit history and/or credit summary (score) rating, customers are advised to:

6.1. repay in full all overdue obligations accumulated in the past;

6.2. avoid any overdue payments under existing credit arrangements, even for a single day;

6.3. reduce the number of existing credit facilities by repaying them partially or in full;

6.4. reduce the outstanding balances of existing credit facilities;

6.5. reduce the number and total amount of guarantees provided; and

6.6. ensure the full repayment of any overdue amounts relating to guarantees provided.
 

***Where a penalty, including a late-payment charge and/or fine, is actually imposed, the annual penalty rate and/or aggregate amount of penalties shall remain within the maximum limits permitted under the legislation of the Republic of Armenia.

• For more information on credit history www.abcfinance.am
• For more information on credit summary (score) ratings www.acra.am, www.abcfinance.am
• For more information on the FICO score www.acra.am 
• Financial Education for All www.abcfinance.am 
• Your Financial Directory` www.fininfo.am

Information on Factors Affecting Credit History and the Credit Summary (Score) Rating