When applying for a loan, you need to have a good credit history if you do not want to have problems getting a loan. Financial companies check credit history by using information from such databases as BIK or BIG. What information is collected in these databases?
Institutions that are BIK or BIG are governed by legal provisions that result from BIK’s banking law. Credit Information Bureau collects information on the credit history of clients. Information on loan liabilities is collected at BIK.
Banks are obliged to send information to BIK from granting any loan until its repayment. The BIK collects information on the timeliness of repayment of financial liabilities. This applies to both long-term loans such as home loans and limits on credit cards.
Rating at BIK
The credit history that is collected in BIK allows banks to determine whether the customer regularly repays credit obligations, how large credit obligations a client has at a given moment, and whether the client does not have any outstanding loan commitments. When the credit obligation has been repaid without delay, such data is transferred to the statistical database.
Such information is not visible to banks or financial institutions. However, in the absence of repayment of the obligation on the date where the delay is more than sixty days, then the bank, after information sent to the client, enters such information to BIK, where it is processed for the next 5 years. This negatively affects the credit risk assessment, which is calculated in banks when granting loans.
What data goes to BIG?
BIG operates based on the act of economic information and the exchange of economic data. The BIG contains information that concerns business entities. While only information from BIK can be used by banks and credit unions and after the consent of the financial institutions expressed in writing by the client, information from BIG may be used by consumers, companies or institutions.
Reports from both BIK and BIG can also be obtained by persons, entities to whom the collected personal data relate.
Why is a good credit history important?
When the credit history is negative then you can face serious difficulties in obtaining a loan or a loan. It is therefore worth taking care of regular repayment of credit obligations. Then you can be sure that you have a good credit history, which greatly facilitates the acquisition of long-term loans or high-yield loans.
At the same time, it is worth taking into account that delays in the bank account or credit card limits are also able to adversely affect credit history. It is worth taking this into account when you want to be sure that you do not build a negative credit history. The more delays in paying off financial liabilities, the more seriously we can expect future difficulties in applying for bank loans.