Granting loans by banks is always associated with a certain risk. In order to avoid unreliable borrowers, financial institutions evaluate clients in terms of creditworthiness on the basis of reports from the Credit Information Bureau (BIK). The BIK contains all information on the history of repayment of past and current liabilities.
Paid your credits on time
The BIK report also informs banks whether we have paid all our liabilities on time , and any deviations are recorded and affect our creditworthiness. In the Credit Information Bureau, each borrower is assigned the so-called scoring. The range is from 192 to 631 points. People who do not pay their debts on time or exceed limits on credit cards have a low scoring point, which often prevents them from taking a bank loan in the future.
Delays in payments below 30 days are fortunately not recorded
The problem arises when we do not pay off our obligations over 30 days from the repayment date. In such cases, most banks issue a negative credit decision in advance (only a few banks will credit such persons, but this is always associated with an increase in interest rates).
Delays beyond 90 days make it even more difficult to take a loan again
People who do not pay their debts for 180 days have practically no chance of getting a bank loan.
We can fortunately improve our creditworthiness at BIK. It is enough to repay your liabilities in a timely manner and after a certain time our scoring should return to normal. An equally effective method of improving point scoring is to make a small commitment and repay it on time. Before submitting a loan application, it is worth taking an interest in our “status” in BIK due to the fact that information about our credit history is stored up to 5 years back.