According to the announcement, you can read next entry from the series “February with BIK and GIV”. Last week you could find out the difference between BIK and GIV. This time you will receive specific tips that will help you build a good credit history.
The institution that collects information that makes up your credit history is the Credit Information Bureau. Thanks to positive entries in BIK, you are most sure that the bank will grant you another loan and you can also apply for better loan terms. A good credit history is also the best proof that you are a reliable, trustworthy payer.
Credit Information Bureau – basic facts
BIK was founded in 1997. The main task of the institution is to collect, store and share data on the liabilities of financial customers of banks, credit unions and loan companies. BIK also receives positive data (about timely repayment of liabilities), as well as negative entries (regarding payment arrears). BIK not only stores your credit history, but also issues a score (score), which is an important factor for banks when assessing your creditworthiness. An important element of BIK’s activities is also the reservation of identity documents in the event of their theft.
Credit history – what is it?
Credit history is nothing more than a collection of information about your previous and current payment obligations. Every time you take a loan or loan, open a debit on the account or start using a credit card, the BIK receives a monthly report in which it is recorded whether you regulate. The data is sent until you pay the commitment. However, you may agree that BIK also store information on those banking products that have already been paid. This is particularly important in the case of timely regulated receivables, because then successive institutions know that you are a reliable payer.
The last type of information that BIK collects are the inquiries about borrowers submitted by financial institutions. BIK is based on the principle of reciprocity, which means that banks not only send data about their clients, but they can also find out how to regulate early Higher liabilities and whether they applied for loans and advances to other banks, credit unions or loan companies.
How do you have a good credit history?
Due to the fact that good credit history in BIK depends on whether you pay your liabilities on time, you can have a GIV influence on it. First of all, remember to regularly pay installments for loans and loans. This is especially important, especially when you plan to build a house or purchase an apartment and you want to apply for a mortgage. The next thing is to keep moderation in the amount of commitments made. Measure your intentions and do not use banking products just because you have the option. Close liabilities that generate unnecessary costs. They also try to pay smaller loans or loans. If all installments are regulated on time, make sure that your information is stored in BIK also when you pay the loan. Otherwise, the bank will not know that it may trust you.
And finally, the most important ones. Remember that the lack of any credit history is often much worse than the negative entries in BIK. It is worth using, for example, a credit card – debt, which costs nothing if you pay them on time. Even such a small loan will allow the bank to check how much you are paying. In a situation where the bank can not determine how to settle existing liabilities, it does not know what the risk associated with the loan allocation is. As a consequence, he can refuse your application and you will not get the money you need.
Do you want to know more about the Credit Information Bureau? See the entry on the differences between BIK and GIV. And on the following Monday you will know when you hit the “black list”.