jak zbudować dobrą historię kredytową

How to build a good credit history?

Building a credit history is a tedious and time-consuming process. However, it is worthwhile to take care of your credit score, for example, by paying regular and timely installments on loans and credits. This gives us the opportunity to receive better credit terms and increases our chances for other bank financial products. How to build a good credit history? What to pay attention to?

What is BIK scoring and how does it affect our credibility?

BIK scoring, which is a score calculated by the Credit Information Bureau, is a kind of rating system for borrowers. Based on the BIK scoring, most financial institutions issue credit decisions in an automated manner. How we repay the loans and credits we have taken out determines whether we will receive new financing, as well as the costs involved. The better the BIK score, the lower the bank’s risk, and thus the lower the side costs of loans.

The BIK score is affected by several factors, as we wrote about in the post: What affects the BIK score. What to pay attention to.

What is credit history?

We’ve also largely written about what credit history is in a previous post, but it’s worth recalling in a few words what affects our credit history before we start scoring ways to build it.

Credit history is nothing more than a borrower’s documented experience with loans and credits taken from banks and financial institutions. If we have taken out any loan or credit, revolving limit, credit card or other credit product, this information goes to the BIK. The Credit Information Bureau’s database shows the exact dates and amounts of repayments, as well as the number of credit applications submitted, the number of active and completed commitments, and the “way” of using financial products.

All this affects our credit score, and colloquially this is what is called“credit history.” What kind of credit history we have, and therefore experience with financial products, determines whether we will receive further financing and what terms the bank will offer us.

How to build a good credit history?

Building a credit history takes time, and the whole process takes a minimum of several months. A good credit history, on the other hand, takes years to build. To build a good credit history, we should plan the process carefully, and the following tips may be useful. It is worth remembering that several factors affect our credit history, so we should not underestimate any of them.

IMPORTANT: In addition to credit history, banks also take into account creditworthiness. If we don’t have it, even the best credit history won’t help us get another financing.

Building a good credit history

Building a good credit history, or indeed any credit history at all, should start with taking out a small debt and making regular installment payments. This can be, for example, an installment loan for household appliances or furniture, or a small cash loan, which you will repay over a period of about 12 months. This time is enough for banks to gain confidence in us. If all installments are paid on time, our BIK score will rise strongly.

IMPORTANT: Punctuality plays a key role in the BIK score, so it has a decisive impact on how our credit history looks.

building a credit history
Building a credit history is a time-consuming process. Photo: Image Source via Canva

Another extremely important part of building a good credit history is the judicious use of bank products. If we frequently use money borrowed from the bank, such as in revolving limits, credit cards, etc. the worse credit history we build. For banks, a person who frequently uses external financing may be riskier than one who does so infrequently.

IMPORTANT: If you want to build a good credit history, it is best to give up credit cards and revolving limits altogether.

The third factor that has a big impact on our credit history is the number of credit applications we make. The more often we apply for loans, credits, installment purchases, the worse we perform in the eyes of banks. The BIK in its scoring takes into account applications made over the last 12 months.

IMPORTANT: Let’s not make too many applications during the year. If we have to do it already, let’s try not to have more than 3 per year.

Can I get a loan without a credit history?

Yes! Without credit history you can get a loan, and the bank’s decision is influenced by creditworthiness. If you have it, you can safely apply, for example, for a cash loan or installment purchases. However, without a credit history, it will be difficult to get larger financing, such as a home loan. Banks do not know who they are dealing with, how we have repaid previous loans and credits, or in general how we approach our obligations.

It is quite common for people applying for a mortgage or a car loan to build up their credit history beforehand precisely with small obligations that are paid regularly and on time. It is therefore worthwhile to start building a credit history well in advance and keep an eye on installment dates.

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