The credit history of all consumers is based primarily on entries in the Credit Information Bureau. BIK is a terror of people who have arrears in paying their debts. A few or even one such situation causes that the consumer loses the right to loans and similar products in almost all banks. Fortunately, by understanding the work of BIK, you can use the database to improve your situation. Learn how to build a good credit rating.
Regular repayments – the basis for achieving a good credit opinion
Of course, regular repayment obligations are the essence of building a positive credit opinion . Information on all loans, credits, credit cards and even revolving limits (overdrafts) granted on bank accounts are sent to the BIK database. Information on each payment of the liability is sent to the BIK database. When it is timely or delayed by no more than 30 days, it affects the creation of a positive credit history . However, with each subsequent month delay, the arrears decrease our scoring more and more effectively block access to banking services. From the point of view of people applying for a mortgage, for example, a slight neglect of a few years ago can ruin this plan.
Use of credits and similar products
The calculation of scoring in BIK is a secret of this institution, but certainly their timeliness is more important than the amount of liabilities paid. Even a small loan significantly improves our credit rating. When thinking about a serious loan in the future, you should use, among others, installment sale without interest. Buying a laptop, car radio or even a dryer in this way will significantly increase your scoring.
Consent to process credit information
Building a good credit opinion in BIK is not possible without consenting to the institution processing loan data. Usually, such consent is signed with the contract. On the other hand, it may be beneficial to withdraw it. When arrears arise, it is usually better to withdraw your consent and get rid of negative entries.
Control of commitments contained in the BIK database
If all our obligations are in BIK, it should be remembered that regardless of regular repayments, the sum of the liability reduces the customer’s creditworthiness. After repayment of the debt, it happens that banks are quite slow about removing debt information from the BIK database. Therefore, after paying off the loan or credit, it is worth monitoring your situation so that the lender’s tardiness does not reduce your creditworthiness.
Monitor your situation in other bases
However, BIK is not the only consumer information database used by banking institutions. BIG operates on a very similar principle, i.e. a database that receives negative entries about the consumer related to expired obligations. Before applying for any loan, it is worth making sure that there are no such arrears. The same obligation applies to the National Debt Register. The difference is that in KRD we can find a much broader spectrum of outstanding commitments. It happens that an unpaid and forgotten fine of up to USD 100 effectively blocks the possibility of applying for a mortgage, despite a positive credit history, high income and other consumer strengths. Repeatedly applying for loans and credits or even making simulations at various banks also reduces the customer’s credit rating. Therefore, before going to the bank, it is really worth checking your history in the mentioned databases.