How to build a positive credit history?
Consumer credibility, age and the industry of its employment affect the credibility of the consumer. A key component of it is also its individual credit history .
Credit history is nothing but the testimony of our past contacts with the bank and the details of cooperation . If in the past we have fulfilled our consumer obligations (we have timely repaid loans or we have not been delaying the repayment of the loan), our credit history will be positive.
loan margin, bank commission or a larger loan amount.
Therefore, if we think about taking out a loan to achieve our dream goals, we must take care not only of our creditworthiness, i.e. the amount of income earned and stable employment, but also of the credit history that is clean and undiluted without any delay. We’ve checked how to do it .
Pay your liabilities in a timely manner
If you already have credit commitments, make sure that you pay them back in time and without problems until the very end. There is nothing worse for your credit history than the delay in repayment of the loan installment .
The Credit Information Bureau itself confirms the information that it is the emergence of arrears and delays in repayment of liabilities that is the factor that most strongly affects our credit history.
The timeliness of repayment of liabilities is the most important parameter for calculating bank scoring , ie the point consumer assessment performed by BIK and in the context of which all bank analysts process credit applications. Remembering this, try to pay off your liabilities in a timely manner.
Get to know each other
If you do not have any loan commitments, you do not have to worry about paying them off on time, but at the same time you can be sure that you will remain anonymous for an unprofitable Consumer loan .
As we have already pointed out – being a user of the financial market, you can show one of three credit histories: good, bad or none. Contrary to appearances, the last of them is not at all “neutral”, but unfavorably affecting your consumer credibility.
If you do not show any credit history, banks will not know what they can expect from you . Bank analysts who are debating the approval of your loan application will not be able to resist in their analyzes and will do the safest – they will give a negative credit decision.
Therefore, if you want to build a good credit history – let yourself be known. How to do it? We write about it in the following paragraphs.
Make a credit card
The first way to enter BIK or simply improve your credit history among Consumers who already have certain liabilities is nothing else but getting a credit card.
Many users of the Polish financial market refuse to submit an application for a credit card, considering it an unnecessary threat and a direct cause of many financial problems.
However, the credit card is not evil in its very essence. It was created for a good purpose, and the fact that many people are indebted just using it is not the fault of the card, but of the Consumers. In order to have the benefits of using a credit card, it is enough to use it wisely – pay off the debt within the deadline set by the bank and not use it continually.
Apply for a debit on the invoice
Another way to increase your positive activity in BIK is to apply for the possibility of debiting with your personal account. Debit connected to the account is an ideal opportunity to demonstrate consumer responsibility and to be trustworthy on the part of the future Lender.
Banks usually grant debits for several thousand dollars, but even the lowest debit will be visible in BIK as your credit obligation. With a debit on the account, you can systematically generate a small debt and repay it – or not to debit at all and thereby build the opinion of a reliable customer who, although able to do so, fights temptation and does not indebt yourself on the debt.
Both ways of using debit are just as good and will result in an improvement in our credit history. However, if we decide on “variant 1”, i.e. using debit, it is worth to indebt yourself for small amounts and only once every few months. Otherwise, the bank may think that we do not deal with our finances and, as a consequence, give us a bad opinion of cooperation.
Take out small loans
To build a positive story at BIK fine loans for any purpose may be of great benefit. Although it sounds quite strange (debt to improve consumer credibility?), It really works in favor of our banking and credit reputation.
Small loans can be spent on buying long-desired items or on financing your current needs and household expenses. Thanks to the use of such a loan, we will bake two birds with one stone – we will not only meet our consumption needs, but thanks to the timely repayment of the obligation we will earn a good consumer rating.
However, it is worth remembering that when borrowing only in terms of building a positive credit history, it is worth checking in advance whether we will be able to pay for it in a timely manner and without any problems .
Buy in installments
An alternative to borrowing for any consumption purpose can simply be to make a purchase in installments. In this way, many Consumers decide to buy their own home appliances, furniture or even jewelry – without even knowing that they are improving their own credit history.
The purchase of equipment in installments can have a positive impact on our consumer assessment only if we try to timely repay the entire liability . The use of such an offer may be very beneficial in these times, as many stores offer low-interest installments.
Most sellers allow you to spread the cost of purchase for a dozen (sometimes several dozen!) Low-interest installments. Sometimes you can also come across 0% offers. So before we decide to make an installment, it is worth looking for a good offer, which we will not overpay.
If you can, have more than one commitment
Although this advice sounds quite unusual, it is worth delving into its essence to understand what a big role it plays in building a good credit history.
Taking several loans at once and taking on more than one financial commitment is not about getting entangled in a spiral of debt (though unfortunately many irresponsible Consumers just end it), but about proving to the bank that we are able to manage many parallel debts and not We have a problem with this.
So if you consider yourself a responsible and trustworthy consumer , try to make two small commitments at the same time or combine one loan with the debit on your account. By paying off both liabilities in the due date, you will gain positive points for your consumer rating .
If you have delays – contact your bank immediately
Even the most responsible Borrowers sometimes have problems with timely repayment of debt. This is not surprising, because each of us has a lot of life and once again accuses us of unexpected expenditures, which we have to worry about ourselves with cashing.
So if we find ourselves in a difficult financial situation and we have problems with settling loan installments, the first thing we should do is contact the bank immediately . All you need to do is call your lender and explain the difficult situation for us.
The bank’s employees are also people at the end and they understand that each of us has worse times. Joint forces will surely reach a mutually advantageous agreement – extending the loan repayment period or temporary suspension of installments. Most importantly – our initiative will show the lender that we do not run away from responsibility and are trustworthy .
Revoke consent to the processing of information about problem loans
The Credit Information Bureau collects and stores data on all financial liabilities we incur . While in the case of loans repaid on time, this is positive information, so in the situation of delayed repayments a problem arises.
If we allow delays in repayment of more than 60 days , the information about such a fault will go to BIK for good and will weigh on our credit history. Is there any way out of this situation?
Of course! All you need to do is to withdraw your consent to BIK processing information about the loan . Although according to the current provisions, BIK has the obligation to store such data for 5 years, by withdrawing consent to data processing, it will be possible to delete entries about our delays after 5 years .
Check data in BIK and react on a regular basis
Each Consumer who cares about a positive credit history should at least once a year take advantage of the opportunity to check his credit rating at BIK.
When planning to file a loan dispute application, it’s a good idea to get a BIK report about yourself , including not only the consumer’s score, but also information about all of our credit commitments.
It happens that banks update data about their Consumers in BIK without haste. It happens that we will pay off our loans a long time ago, but BIK still does not know about it and displays information about the obligations incurring on our neck. In this case, it is worth filing a complaint with the bank and requesting the transmission of up-to-date information to BIK.