What are the differences between negative and positive data?
A Full-file credit reporting (currently available in Guatemala, Honduras and Nicaragua) includes both negative and positive credit data, which gives credit providers a more complete picture of a borrower’s credit history. For example, a credit report comprising only positive data may show that a consumer has no late payments. The credit provider may then assess the consumer as a low-risk borrower. If both negative and positive data are included, however, the financial institution may also see that this consumer has excessive, high lines of credit. While there may be no late payments, the consumer may be overextended. Receiving another line of credit may result in an inability to repay the debt. The use of both positive and negative data allows credit providers to determine a more accurate level of risk, decide whether to lend to this borrower and set appropriate terms.
