The credit histories of 530 million people and tens of thousands enterprises are now included in a database managed by the credit department of China's central bank.

Commercial banks are accessing the database 200,000 times a day checking people's credit histories as they tighten criteria for issuing loans and credit cards to individuals.

The central data base keeps track of people's bill payment histories on loans and credit cards, as well as taxes, mortgage and utility payments. The data base also includes information on an individual's investments in the social security fund and public housing fund, said Wan Cunzhi, vice director of the central bank's Credit Information System Bureau on Saturday.

The database was set up in January 2006.

Up to 10 percent of the loan applications have been turned down after the database reveal a bad credit rating..

The database is giving college graduates impetus to repay their loans. More than 70 percent of the outstanding loans have been paid back by the 2006 graduates, 16 percent higher than last year, according to a branch office of the Bank of China.

State-subsidized student loans worth 20 billion yuan have benefited more than 2.8 million university students. A third of graduates who took out loans have defaulted on them.

(Xinhua News Agency December 11, 2006)