Do you have a problem with taking a loan? Non-bank companies are refusing you loans? It is high time to check your BIK history and check your credit standing. How to do it? We’ve prepared 5 ways to revive your creditworthiness.
What is credit standing?
According to the Banking Law, creditworthiness is the ability to repay a loan taken out with interest on the dates specified in the contract, be it with the bank or with other financial institutions. It depends on our creditworthiness whether we receive a bank loan. What does creditworthiness consist of? First of all, financial institutions engaged in borrowing money assess our income and the form of employment. No serious company will grant a loan to a person who is financially unreliable, i.e. unable to provide regular income, or no job.
In the media we often hear accusations such as “loan companies prey on customers who are in debt,” “banks grant loans at a devastating percentage.” The truth is, every honest institution is trying to secure its financial resources and cares about clients paying their debts on time. Therefore, people with a negative entry in BIK have a problem with getting a loan or credit. If our credit history is not favorable, we need to improve it. See ways to revive creditworthiness.
Check your credit history at BIK
It’s worth trying to get a report from the Credit Information Bureau. You can get it for free at www.bik.pl. It is difficult to fix something that we do not know about. That’s why it’s worth learning your own credit history first. Perhaps you have once been in arrears with payment that you have already settled and the debt entry is still in the BIK register? This must be corrected, because you probably can’t get a new financial commitment for this reason.
It is worth knowing that it is not BIK that is responsible for the real information about your financial history, but the entities in which you took, for example, a loan. Banks, loan companies, credit unions are required to update your payment details for loans taken out. There were even situations when injured persons (could not get a loan) because of a “hanging”, outdated entry about their outstanding receivables, sued the financial institution to court and demanded compensation. Updating customer data in BIK is the responsibility of banking companies, so everything speaks in your favor. All you have to do is ask the institution to correct the data.
Do everything to pay back the loan on time
If you are applying for a loan and you have other financial obligations to pay – loans, payday loans, installment purchases – do everything not to be late with your repayment. Regular debt repayments are the most important element in building a positive credit history.
If the bank, analyzing our creditworthiness, checks that all our financial liabilities were settled within the time limit specified in the contract, it will assess us as reliable customers. We take a loan and pay installments in a timely manner. You don’t need anything else to increase your credit scoring.