After making a decision to draw a cash loan, banks first check our credit history in the so-called: BIK, or the Credit Information Bureau. Below we present the most important information about this institution.
What is BIK and when was it created?
Credit Information Bureau was established in 1997 on the initiative of the Polish Bank Association. It stores collects and makes available all information regarding current financial obligations and credit history. The institution was established due to the need to reduce credit risk, increase security and protect monetary turnover. Thanks to the verification in the database, banks can determine the maximum creditworthiness of a potential client based on this information.
How does BIK help a bank client?
This database helps the client applying for a credit product in:
- Receiving information if it has a credit history at BIK.
- Checking history from the last 6 months.
- Getting to know the point score.
- Controlling the transmission of correct data to the database.
- Protecting against unlawful frauds.
- Receiving information on possible debts.
Based on these data, banks are able to prepare the best loan offer.
Data transferred to the Credit Information Office
Information that is contained in BIK concerns all credit obligations incurred in banks, credit unions or non-banking institutions. The statement discloses information about debts serviced on time, as well as those with arrears.
Data storage in BIK
Data regarding liabilities paid out in time are transferred from the moment the funds are transferred until the loan is fully repaid. If the customer has consented to the transfer of his data after repayment, then the data is made available for the period indicated in the signed consent. They may be transferred to any financial institution without the client’s consent for a period of 5 years, provided that:
- Arrears in repayments over 60 days.
- Remaining within the next 30 days from notifying the borrower of information about the debt without his consent.
Such negative information makes it difficult to process any loan or loan. The customer then has the status of an unreliable bank client.
Why is it worth to take care of the positive status of the client in BIK?
Good credit history helps you get faster credit decisions and better credit conditions . The regular repayment of the client’s obligations is taken into account here. A positive story at BIK can be a great argument in the negotiations with the lender.
Credit Information Bureau (BIK) as a basic tool for testing creditworthiness and creditworthiness 5 (100%) 2 vote [s]