When we apply for a loan, we must prove that we will be able to pay it back. For this reason, financial institutions check our creditworthiness. Companies that care about responsible lending also check the credit history of the client in the Credit Information Bureau. Credit history is our “financial testimony” that we should shape accordingly. The website company, offering comfortable loans over the Internet, in cooperation with expert Juan Jaruoszek, has prepared tips that will help you build a positive credit history. The guidelines are part of their website campaign, aimed at promoting good home budget management rules among people using the Internet and making online transactions.
What is the credit history?
Credit history is a proof of whether you have timely settled the repayment of your obligations. Biuro Informacji Kredytowej SA (abbreviated as BIK SA) collects and stores data regarding your past repayments and current liabilities. Credit history includes all kinds of financial products, such as loans, short-term loans, credit cards and debit cards. Credit history: both positive and negative, is built in particular on the basis of:
- credits, loans, debits, credit cards
- recorded delays in repayments and overdue debts
- history of guaranteed loans
How can you create your credit history?
Each of us has an impact on how your credit history will look. If we repay liabilities on time, positive information will be provided by BIK SA. However, if we have delays in repayment, a negative entry will appear in our history. History at BIK SA affects the decision to grant a loan or credit. It can also affect the conditions under which we will receive a specific financial product. So what should we do to make our credit history as good as possible?
5 tips on how to build a positive credit history:
- Repay your financial obligations on time – this is the basic and most important rule of building a positive credit history.
- Cause wisely – do not take out a few obligations at the same time or things that you can not afford. Do not pay one loan the other – this is the first step to falling into a spiral of debt.
- Talk to the lender if you know that you can have a problem with timely repayment. You may be able to agree how to postpone the repayment date and the bank or loan company will not pass negative information about you to BIK SA
- Consider a reasonable, small purchase in installments. The best way is the 0% installment purchase offers. Even if we can afford to buy the whole product, but we have the option of spreading the fees into installments – let’s use it. Thanks to the timely repayment of installments, we build a positive credit history. The decision must be very well thought out – it is not a matter of frequent borrowing, but a prudent purchase for an interest-free installment that will positively affect our credit history.
- Give consent to the processing of data about the loan or loan repaid – thanks to this, positive information about timely repayments will be included in your credit history.
Advantages of a positive credit history
If you have many financial products on your account and you pay off your liabilities in a timely manner, your credit history will work in your favor. It is a confirmation of your credibility, which in turn facilitates your access to more favorable credit conditions. A positive credit history is like a good school-leaving certificate – it is a document that clearly shows a financial institution that we are responsible and it is worth giving us a loan. Remember five tips and your credit history will always be positive!
