Reasons for having a bad credit history

Therefore, we prepared a list of the most frequently reported reasons, which influenced our credit history and influenced its negative assessment.

No timely payment

No timely payment

The main reason why our credit history is getting a negative rating is any delay in paying off your liabilities. There is nothing worse for our creditworthiness than late payment of loans and other financial products . 

BIK himself confirmed the information that it is the emergence of arrears and delays in repayment of all financial 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 banking scoring , through the prism of which all analysts consider loan applications. So if we receive a negative credit decision, there is a good chance that the reason for this was the old delays in repayment.

Difficult contact with the Consumer

Difficult contact with the Consumer

Even the most responsible clients of banks sometimes have problems with timely repayment of debt. So if we find ourselves in a difficult financial situation, the first thing we should do is contact the bank immediately . 

To avoid serious consequences of our delay in repayment, in most cases you only need to call your lender, explain the situation to him and, if necessary, document the reasons for it – for example, terminate dismissal or send confirmation of expensive treatment. 

When showing the initiative, we will certainly be able to negotiate a favorable agreement with the bank (eg holiday suspension of installments). However, if we do not only contact the lender, but also sell his calls or letters, we will quickly earn a negative consumer opinion .

Exceeding credit limits

Exceeding credit limits

Our credit history is also affected by the fact that we have exceeded the credit lines granted to us by banks (debits on the savings and settlement account or credit cards).

That is why, if we decide to open a debit or make a credit card, we should use these products in a wise and thoughtful way . 

It is not true that if we have a debit granted, we can use it at will without consequences. The degree of utilization of the available limits affects our banking scoring . There is no problem if we use the available limit once every few months, but if the situation is repeated constantly, the bank will decide that we can not deal with finances and give us a bad opinion .

Falling into the spiral of debt

Falling into the spiral of debt

The negative assessment of our creditworthiness is significant, if not primarily influenced by the loss of control over our finances and multi-level indebtedness resulting in numerous delays in repayment . 

People who fall into a spiral of debt usually decide to take out new loans, not coping with the repayment of their original obligations. Secondly, borrowed money is trying to regulate current fees, but the trail after all the loans taken is left to BIK. 

As a result of multi-stage borrowing of cash, Consumer debt is not only diminishing, but also growing. Subsequent loans generate further, even higher interest rates, and even if we manage to get out of this spiral of debt, the banks will know that once we have lost our sense and control over the money, it can happen again . Hence the negative assessment of our credit history.

Anonymity

credit problem

The last point, which – although many seem to be unobvious – strongly affects the negative credit rating of our person, is the lack of any credit history. 

A zero credit history is a negative credit history . If you do not show information about your previous cooperation with the bank and the actions taken, and so generally speaking – the credit history, banks will not know what they can expect from you. 

Credit analysts debating the approval of your loan application will not have anything to resist in their analysis and will do the safest thing – they will give a negative credit decision. In order to count on a positive consideration of the application, you must be known at BIK and have liabilities settled or still paid .