How to build a good credit history?

How to build a good credit history?

A positive credit history is proof for financial institutions that we are reliable and trustworthy. In turn, we can be sure that the bank will grant us a loan or credit and count on better credit terms.

It all depends on what data about us flows to the Credit Information Bureau. So what to do to enjoy a positive credit history?

What does BIK do?


BIK, i.e. the Credit Information Bureau, collects data on the financial obligations of bank customers, credit unions and loan companies. The data collected in this way is our credit history.

BIK collects both positive and negative information about us. On this basis, he gives us a score. This is an important guideline for banks and other financial institutions that allows them to assess our creditworthiness.

BIK provides banks with financial institutions with all information gathered about our financial obligations and their timely repayments to help them decide whether to grant a loan or a loan.

What is a credit history?

Credit history is a collection of all information about the current and past financial obligations of each of us.

This information is sent by financial institutions to the Credit Information Bureau, which then makes it available for inspection to banks, credit unions and loan companies in order to easily verify the customer’s creditworthiness.

Negative information – about arrears of debt repayment, as well as positive information about repayments – is sent. They concern various financial products: loans, borrowings, but also overdrafts or credit cards. The credit rating awarded on this basis by BIK determines our credit history.

The more positive information, the better chance we will have for a better bank loan.

However, if our credit history is negative, we may have a serious problem getting a bank loan or even a loan from a loan company. Negative information on repayment of debts is visible for 5 years from their completion.

Bad credit history versus no credit history

Bad credit history versus no credit history

Paradoxically, having a bad credit history is not worse for us than its complete absence. Because if there are no records about us in the BIK database, financial institutions will not know what to expect from us, and therefore they will not have grounds to treat us better than people with a negative credit history. What’s more, it is possible that despite the fact that we have already repaid some financial liability on time, this information will not appear in the BIK database because we have not consented to the processing of data on the repaid loan.

In such a situation, the bank may increase our margin or require us to pay a higher commission. It may also turn out that the bank will give us a smaller loan than we want or we will receive it for a shorter period. The bank may also refuse to grant us a loan or credit, however, this applies to extreme situations and highly indebted persons.

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