Credit Information Bureau is a commercial venture created on the initiative of commercial banks and the Polish Bank Association. At present, the institution also cooperates with cooperative banks, savings and credit unions and several dozen companies from the non-bank loans sector. The main task of BIK is to collect, process and disclose to financial institutions information that is a banking secret and serves, among others assessment of creditworthiness and analysis of the credit risk of the person applying for a loan, credit card, debit or loan.
All entities granting loans or borrowings are required to provide customers with BIK data and information regarding the repayment of their financial liabilities. It should be emphasized that the role and tasks of BIK are defined at the level of the Act, which further emphasizes the role and importance of this institution on the financial map.
How the Credit Information Bureau works
As we have already mentioned, almost all financial institutions granting loans are required to provide information on our obligations to BIK. It should be remembered that the data goes there regardless of the nature of the financial product – no matter if we took a loan for installment purchases, a debit card, overdraft, account limit or loan guarantee. The information flowing down there makes up your credit history. Information entering the database includes information that you are just applying for a payday loan, then after granting, institutions send data on timeliness or payment delays. We will also find in them data on debt collection activities, debt collection or account closure. The analysis of your credit history is a basic process in assessing the risk for a bank or loan company.
After settling a single liability, its history and data about it will be deleted from the database if we do not agree to further processing of this data. The question arises whether it is worth erasing positive information from BIK. From the point of view of future decisions on taking loans, it is worth agreeing to leave the data. Thanks to this, each subsequent financial institution will see our good credit history and thus we will be able to obtain additional financing more easily.
In a situation where we have not settled our obligations on time, and the delay in repayment was longer than 60 days or 30 days have passed since the bank or loan company informed about the arrears, the BIK has the right to process our data for 5 years without permission.
The data on our credit history should not be underestimated. Very often, one omission in regular payment of obligations may prevent you from using the loan.
BIK scoring, i.e. responsibility pays off
Based on the information collected, BIK creates a synthesis score for our credit history. The amount of points is affected by both timely repayments (76% weight), credit activity, i.e. the number of repaid and still active loans (11% weight), the use of credit limits (8% weight) and how often you apply for in a short time loan and you get a refusal.
As can be seen from the BIK scoring structure, the most important parameter for good scoring is timely payment of liabilities. Our activity in using financial products is much less important.
How to build a good credit history
No need to convince anyone that it’s worth having a good history at BIK. Remember that thanks to this we can use the entire range of available financial products at a good price. Bad credit history closes our way to getting loans at good prices. Thus, we not only expose ourselves to additional costs, we are often forced to use the services of suspicious companies.
Building a good credit history requires responsibility. First of all, let us always pay our debts on time. Let’s also provide positive information to the database using small credits or loans. Let’s keep an eye on our history from time to time.
In the case of Vanga Boys, each application is considered individually. As part of the customer verification process, it is checked in the BIG, BIK and ZBP databases. A customer who wants to take advantage of our long-term loan for up to $ 10,000 for a period of 24 months when submitting the application provides us with some basic information. Based on them, using data from economic information databases, we decide to grant a loan in a few minutes. Go to Vanga Boys and see how quickly and easily you can get a loan online.