How to care for your payment credibility?
Timeliness pays off
The basic factor affecting our payment credibility is timeliness. This applies to all financial obligations that we are bound by a contract with a bank, loan company, water supply, gas, internet, and electricity supplier or other commercial and service entity. So regularity and paying bills on time help build the image of a reliable payer. The longer we maintain the status of a trustworthy person, the more financial institutions are willing to offer us favorable conditions for using financial tools. The bank is willing to lower the loan interest rate, increase the credit card limit or offer a higher mortgage. The loan company will appreciate our reliability and increase the amount of the next loan or give us a rebate on fees on the next commitment. But how do banks, non-bank companies, stores selling household appliances/electronics in installments, etc. know that we are a reliable customer who conscientiously pays the bill and repays the loan installments? For them, the source of information is economic information bureaus.
Payment reliability confirmed
The first association that usually comes to mind when we hear that the main task is to help in recovering debts. Still few Poles know that being listed in BIG databases may also result from diligent monitoring of payment dates. In addition to negative information, i.e. entries about our debts, we will also find there positive information that confirms that we are managing our budget reasonably and timely repayment is high on our personal priority list.
On the basis of what types of entries are visible in the registers of business information bureaus, the bank or lending company assesses the risk level of granting us a loan or a loan. The more positive information, the easier it will be to receive money and vice versa – a large number of negative entries significantly impedes or even prevents obtaining external financing.
How positive information goes to BIG? We agree with this ourselves. Increasingly, contracts include a point asking whether we consent to provide information on the fulfillment of monetary obligations to economic information bureaus.