Letters of call are a mechanism for establishing credit records and evaluating credit status through the collection, collation, management of personal and business credit information. In modern societies, the system of inquisition is gradually being widely applied and plays an important role in the development of individuals and enterprises. However, for many borrowers, letters of call may be a burden. They were concerned about the time and effort spent on the letter, as well as whether their credit position would adversely affect loans and repayments。

The letter was spent, but it was well repaid

In the traditional lending model, banks usually require borrowers to provide personal letter reports as part of the loan audit. During the course of the loan approval process, the bank evaluates the borrower ' s credit records, including the borrower ' s personal credit, indebtedness, repayment records, etc. If the correspondence is well documented, it is likely that borrowers will be able to obtain loans and enjoy lower interest rates and better loan terms。

However, for some borrowers who do not have a stable income or credit record, letters of credit can become a challenge to their access to credit. These persons may face rejection or high interest rates when applying for loans. However, their credit position is expected to improve if they are able to overcome these difficulties and demonstrate their ability to repay with good repayment performance。

The development of modern financial technology has led to the emergence of an emerging “information spending” model. By analysing the borrower ' s intangible assets and transactional data and assessing its creditworthiness, this model creates a different approach from that of the traditional intelligence system. The letter-taking model gives access to credit to those who do not have a traditional credit record, through a comprehensive analysis of borrowers ' credit, consumer behaviour, rather than relying solely on individual letter-writing reports。

Under the letter-taking model, the borrower ' s repayment performance was important. If borrowers were able to repay on time and maintain good repayment records, their credit position would improve. In this way, the borrower ' s credit records will gradually develop and future loan applications and interest rates will be more favourable。

At the same time, the letter-taking model is also useful for financial institutions. In the traditional format, the limited and possibly incomplete information contained in letters-writing reports creates uncertainty for financial institutions. By means of multidimensional data analysis, the letter-taking model can provide more comprehensive and accurate credit assessment, reduce borrowing risk and provide financial institutions with more credit opportunities and better returns。

In short, the letter-taking model gives those who do not have a traditional credit record the opportunity to obtain credit. At the same time, good repayments play an important role in establishing and improving personal credit. For financial institutions, the letter-taking model provides a more comprehensive and accurate credit assessment. Thus, the good repayment of letters is a positive credit performance that contributes to the establishment of personal credit and the development of financial markets。