Most people who have at least once in their lives incurred any financial obligation have encountered the terms BIK and BIG. Both of them, on the one hand, are the same thing, i.e. a certain “database”-on the other hand, they differ in many aspects. No less, each of these abbreviations can be both helpful and a hindrance to taking out a new loan or credit. BIK versus BIG, what is the difference between them?
Creditworthiness vs. credit history, BIK vs. BIG. Many terms, one credit
When applying for any loan, be it cash, housing, car, or any other credit obligation, we must expect that banks will carefully analyze our financial capabilities and creditworthiness when considering our application for financing.
Creditworthiness is nothing more than the ratio of our income to expenses / monthly financial burden. It is affected not only by loan installments, but also by the cost of living or the number of people in the household.
Credit history, on the other hand, shows banks and credit institutions how we pay our debts, how often we do it and, in general, what kind of borrower we are. Check out how to build a good credit history.
Based on our credit history, banks can see perfectly well whether we are prone to take excessive risks and whether we are currently in a debt spiral. Credit history appears in one of the databases mentioned in the introduction, which in this case is the BIK.
What is the BIK?
BIK, or the Bureau of Credit Information, is an institution that processes all data on loans and credits taken out on the Polish financial market. Literally every obligation, loan, credit card, revolving limit taken out by consumers and entrepreneurs goes to BIK.
Despite the fact that BIK is a private institution, it operates on the basis of banking law and has full rights to use and process data provided by banks. Data on loans and credits taken out are in the BIK for a minimum of 5 years, from the date of full repayment of the obligation. It is not possible to shorten this period. If you do not withdraw your consent to the processing of data after the expiration of the obligation, the BIK will process the data practically indefinitely.
IMPORTANT: If we have repaid our loans and credits on time, there is no point in “cleaning the BIK”, i.e. removing positive entries from the database, as they impinge on our overall BIK score. As is not hard to guess, a positive score affects the ease of obtaining further financing. It also determines what costs will be charged for the loan. Find out what affects your BIK score and how to take care of a good scoring.
What is BIG?
BIG stands for Business Information Database. The difference between BIK and BIG is that BIG refers to different databases, which include the National Debt Register (KRD), BIG Infomonitor, ERIF. These are by far the three most popular economic databases in Poland.
BIGs usually contain entries concerning overdue liabilities (colloquially debts), and in order for such an entry to appear there, it must be entered manually by the creditor. Importantly, not only unpaid credit obligations land in BIGs, but also those arising from civil law contracts. An unpaid private loan, an unpaid fine, unpaid alimony or any debt that we have not paid to another person or entity can end up in the BIG database.
In order for a debt to appear in the BIG, the creditor must enter it manually, but in order to do so it must have a service agreement with one of the BIG databases. It is worth noting that public administration authorities are quite eager to use the BIG, and we can be sure that non-payment of a fine will result in an entry in the BIG.
BIG databases are designed to warn other participants in the economic market of an unreliable contractor, as well as to “force” the debtor to repay his obligations.
IMPORTANT: A negative entry in one of the BIG databases can effectively derail your chances of receiving bank financing or entering into a contract with a telephone operator.
It should be added that paid, closed obligations may also appear in BIGs, but in practice, rarely, which creditor places them there.
BIK versus BIG. What is the difference?
We have listed the differences between BIK and BIG, describing each of these databases. The BIK, or Credit Information Bureau, processes data only on liabilities incurred in banks and institutions under the authority of the Financial Supervisory Commission (FSC). From the BIK we will learn how we have handled our previous credit obligations, how often we have used various financial products, and with what frequency we have applied for new loans.
The BIGs contain information about unpaid, but also repaid obligations, both credit and non-credit, but only data on whether the obligation has been repaid at all. In practice, mainly unpaid obligations land in the BIG, which is why BIG databases, are commonly referred to as debtor databases.
We hope that we have already cleared up your doubts about the difference between the two databases, and you already know what the difference between BIK and BIG is.
