Many people experiencing financial problems are afraid of verification in BIK before taking a loan from a bank or other financial institution. Is that right How does the BIK database work and what is it for? What are loans without BIK and what are the consequences of taking them? Is there a better alternative?
What is BIK and what is it for?
The Credit Information Bureau is an institution created by an alliance of banks operating on the Polish market. As a rule, all information on consumers related to financial services that they use is sent to the BIK database. Each loan, credit, overdraft limit or credit card, as well as installment purchases, are assigned to the individual customer account.
Timely repayment of liabilities (in practice not exceeding 30 days of delay) is associated with a positive entry that helps to improve the individual ranking of the consumer. Any delay lowers him. On this basis, banks, as well as many non-bank lending institutions, assess consumer credibility and creditworthiness. Each customer can ask BIK to create an individual report about themselves.
Loans without verification in BIK
On the Internet we will find many offers for loans without verification in the BIK database. Private lenders as well as pawnshops operate on this principle. The difference between traditional and mentioned loans is that in the latter case the potential lender does not use the BIK database during verification of the client’s financial capacity, and usually also typical debtors’ databases, such as the National Debt Register and the Economic Information Bureau.
Is it worth using these types of loans in case of financial problems, sudden expenses or occasions in the form of a unique price promotion for even a vacation? Not necessarily. A loan without BIK is a service created for seriously indebted persons who have no chance of receiving a loan from a bank or loan institution due to the negative history in the Credit Information Bureau database.
From the lender’s point of view, providing such support to a client is naturally associated with a higher risk. The risk premium is higher profit in the form of horrendous interest and commissions. In turn, the loan agreement may also contain unfavorable and unclear provisions – often a trap for people who in an act of desperation reach for such a solution, as a result of which they are actually in a spiral of debt.
Is it worth using these types of offers
Even if we have unpaid liabilities, this does not mean that our situation is bad enough not to have a chance to pass the verification of creditworthiness in a bank or non-bank loan institution. It is worth acting quickly because time is to our disadvantage. Non-bank loans differ from traditional ones by the fact that we do not have to undergo complex verification and provide many documents confirming income and professional situation. In case of doubt, before applying for a loan, it is worth asking BIK for an individual report.