Many people confuse two shortcuts, namely BIK and BIG. What exactly is BIK and what is BIG? What is their significance for a potential borrower? We invite you to check!
There are several institutions in Poland that collect information on the financial situation of Poles. These are primarily the Credit Information Bureau, or BIK, as well as the Bureau of Economic Information, which are referred to as BIG. Often they are wrongly confused between themselves, but they are actually two completely different organizations, but their goals are convergent.
BIK and BIG databases are used primarily to check the financial credibility of individuals and are used by banks and other enterprises, as well as by private individuals.
What is BIK?
The Credit Information Bureau (BIK) collects data on credit (and loan) liabilities of Poles towards banks and other institutions, including non-bank lending companies and credit unions.
In contrast to most of the Economic Information Bureaus, or BIGs, both positive and negative information is sent to the BIK database. In general, each of us who has ever taken a loan, loan, credit card or debit on the account, goes to the BIK database. Therefore, speaking about someone that “is in BIK” does not mean that he is on the list of debtors – information in BIK can also be beneficial and help in borrowing money.
BIK collects information regarding mainly the time of repayment of liabilities, including delays, the number of liabilities as well as the number of loan applications, loans, cards, and debit lines. All collected information is scored according to the so-called BIK scoring.
If we get a lot of points, then we can easily get new loans and credits – even without the need to deliver documents. Otherwise, the bank or loan company may refuse us or request additional confirmations and collateral.
What does BIG do?
BIG, as we have already indicated, is an abbreviation of the Economic Information Bureau. Currently, there are several such institutions in Poland, namely:
- National Debt Register (KRD)
- European Financial Information Register (ERIF)
The BIGs’ task is to collect information about debt, although some also contain positive data. We can find BIGs mainly for failure to pay liabilities, for example for a telephone and RTV subscription, gas works, energy suppliers, for unpaid maintenance and fines. Also, entrepreneurs often use such databases to enter unfair contractors and clients into them and to warn others about it.
Anyone can use the information in BIG. It is worth noting that they are also used by banks and non-bank loan companies, so if we have any unpaid debts, we may also not receive a loan or credit.
Debts in BIG disappear when they are paid off, so you have to pay off debts in order to get out of the base. In the case of BIK, our data stays so for 5 years, when we do not pay the obligation on time.