Credit bureau (BIK) records and applying for a mortgage

When deciding to buy their dream flat, few people can afford to pay cash for a property. In that case the best financial instrument turns out to be a mortgage. But not everyone can get one! The bank's final decision is influenced by our credit history, the details of which are known to BIK. What can you do to maximise your chances of getting a mortgage? We have some tips!

• What information does BIK collect?
• A bad BIK history and being granted a mortgage
• Before you submit a mortgage application
• Look after your credit history!

What information does BIK collect?

The Credit Information Bureau (Biuro Informacji Kredytowej, BIK) monitors the financial liabilities of people who have taken out a loan or credit. This huge database receives not only general data on loan repayment but also more detailed information, such as whether obligations are repaid on time. When we apply for a mortgage, the bank assesses the risk it takes on by granting the loan. The best source of information on this is the BIK database, which, on the basis of our credit history, determines the so-called credit score – that is, a points-based rating of our creditworthiness.

If you have ever bought something on instalments or taken out a loan, or if you use a credit card – this information ends up in BIK. Especially if problems arise with repaying financial obligations. In such situations the institution that granted the credit / loan may apply to have us entered on the list of debtors, and that alone can effectively rule out getting a mortgage.

A bad BIK history and being granted a mortgage

The score assigned to us by BIK plays an important role in the process of analysing our loan application. Information about our loans is kept in the database for the whole period of repayment. In the case of payment problems or irregular payment of instalments, the period for which the data is kept may be extended to 5 years.

Information about our problems in meeting the terms of the loans we hold goes to BIK when the delay has exceeded 60 days. After that time, the bank or institution that granted us the credit should inform us of a change in the processing of our data. 30 days after that moment, BIK receives the full information.

A MORTGAGE FOR PEOPLE IN DEBT

A married couple in which one spouse has a bad credit history may also have problems getting a mortgage. Of course, a less-than-perfect credit history does not automatically mean that our loan application will be rejected. In the case of minor departures from the norm, the bank may show understanding and assess our loan application positively. In such cases banks often grant credit on individual terms that compensate for the increased risk of granting the mortgage.

Before you submit a mortgage application

If you want to increase your chances of your loan application being approved, you should carefully check the information about yourself in the BIK database, which you can obtain directly on the institution's website. Before you apply for a loan, build up your credit history. A common practice is to take out small loans, e.g. for household appliances or a holiday. By repaying them regularly we supply BIK with a lot of positive information.

If you have previously repaid your credit obligations regularly, you should not withdraw your consent to BIK processing your data. That way, even after you finish repaying a loan or credit, the system will keep information documenting your reliability and trustworthiness. Finally, when you decide on a mortgage, remember not to send enquiries to all the banks in the area straight away, but to choose only those institutions that matter most to you. Too many loan applications may be rated negatively by the BIK system.

SEE PROPERTY LISTINGS IN SOSNOWIEC

Look after your credit history!

To sum up, the information banks obtain from the BIK system is an important factor in whether our application is approved. It is all the more important to check the system before submitting enquiries. To prepare as well as possible for buying a new property, you can turn to the specialists at the REMAX Gold estate agency, who will give you a full picture of the lending process and help you get through it.