Smotrich on lowering the credit rating forecast: "Not a big drama, economists are not experts on the constitution"/Knesset Channel
Despite the security and economic situation, Israelis manage to maintain financial strength and their personal credit rating has hardly changed in recent months - this is according to the data of the financial application Captain Credit, which provides access to the credit rating of the public.
What exactly is a "personal credit rating"?
The personal credit rating is based on a range of numbers ranging from 1 to 1,000 and is determined based on our financial conduct.
The mechanism weighs parameters such as - making payments, meeting obligations such as a loan/mortgage and the characteristics of our daily conduct compared to all citizens of the country.
The rating is affected by positive and negative parameters and can change over time - the better the consumer's financial conduct, the higher your rating will be.
The personal credit rating is of great importance in accepting credit terms.
In actions with a credit provider such as a mortgage, loan, negotiations for optimal terms with the bank, financing, etc. The higher the rating, the more the consumer will be considered a safe borrower for the lender and he will be able to get better terms. He will surely meet the repayments of the loan and therefore it is not certain that he will receive a loan, and even if he receives it probably at high interest rates.
The personal rating is determined based on our conduct and is of great importance in obtaining new credit/freepik
What happened to the credit rating following the war?
"Captain Credit" data shows that among Israeli credit consumers in the last year there was a drop of two points in the average credit rating, while among users of the application, there was an increase of five points in the average rating.
These data prove that perhaps the Israeli public is perceived as "uncalculated" financially, but the reality is a little different, despite, and perhaps because of the situation, Israelis actually behave financially in a more conscious and controlled manner.
What does the data mean?
These data indicate stability in the credit rating of Israeli citizens, and that, despite the war, the Israeli public conducts itself in a reasonable and responsible manner.
Israelis often perceive themselves as extravagant and spendthrifts, but in practice it is evident that precisely now, more than ever, they adjust their consumption and expenses to their disposable income, are careful not to take on obligations that they will not be able to meet and, if necessary, use savings.
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More than half of Israelis (57%) enjoy a high credit rating and 18% a good rating/Dana Barak
Wasn't the financial difficulty supposed to lead to a significant drop in the rating?
It should be taken into account that at the beginning of the war the Bank of Israel announced measures designed to prevent harm to the personal credit rating as a result of the fighting (for example, a situation where a soldier fighting in the reserves falls into arrears and cannot take care of it) and announced the extension of the reporting period for arrears from 30 to 60 days, easing the restrictive conditions the account as well as an outline for deferring loans.
These steps, together with the considered conduct, are what caused the financial resilience that the Israeli public has demonstrated so far.
In addition, these data also correspond with the rating patterns of the Israeli public.
More than half of Israelis (57%) enjoy a high credit rating and 18% a good rating.
This means in practice that 75% of the public can meet their obligations to a good extent.
There is no doubt that this is good news both in a normal period and in particular in an emergency period.
The writer is the CEO of Captain Technologies, developer of Captain Credit.
More on the same topic:
Credit Rating
debts
Loans
Savings
War of Iron Swords
Gaza war