People that do not repay bank loans or public utility charges on time will be rated accordingly in their personal credit records, with the debut of the nation's first personal credit grading system in Shanghai.

Customers' current performance is very likely to become part of their credit records in the future, said a spokesman with the Shanghai Credit Information Service Co. Ltd., surnamed Yu.

More than 700 local people with more than 60 days of bank debts were graded H and I in their credit records, indicating they are undesirable as clients of banks, Yu said.

The personal credit information database covers the credit business and credit card consumption of 2.9 million city residents over a two-year period at least, Yu said.

"This information data has already been accessible to Shanghai branches of the Industrial and Commercial Bank of China (ICBC) and the China Construction Bank (CBC), regarded as one of the most important references for banks to extend loans," Yu said.

(eastday.com December 6, 2002)