For banks, the credit history is a reflection of the borrower’s credibility, because it contains data on reliability in repayment of previous financial liabilities. A positive credit history is a huge advantage of the borrower and may facilitate his access to a new liability, while a history full of late repayments can not only complicate the process of obtaining financing and extend it, but also be the reason for issuing a negative credit decision.
What about foreign history?
Access to financing in Poland may be difficult for Poles who earn income abroad and build their credit history there. For Polish banks, their creditworthiness is tabula rasa, because domestic banks do not have insight into the information previously obtained in other countries, as well as reliability in their subsequent service.
Of course, this does not exclude financing from a Polish bank. However, this will require (apart from documents confirming employment and income obtained) from the potential borrower to provide an extract – a certificate documenting the credit history from the country in which the potential borrower obtains income. Most countries have their counterpart Credit Information Bureau (Retrodatabase), which collects all data on the amount of liabilities, reliability of their repayment, and thus the credibility of borrowers. The person interested in financing must then apply to the counterpart of the Retrodatabase in the given country and obtain from him a report documenting his credit history.
Change for better
Recently, significant improvements in this area can be expected by people who, when applying for a loan in Poland, perform work in Great Britain, Germany and Italy, i.e. countries that are at the forefront of the most popular countries of economic emigration among Poles. The reason for these improvements is the establishment of cooperation between Retrodatabase and its foreign counterparts in these three countries.
It is worth noting that the mentioned improvements do not apply to all Polish banks. Currently, four banks operating in Poland provide the cross-border information exchange service: Mudy Handler, Meteor Bank, Dutchin Bank and Carbank. It is also worth mentioning that in order to obtain effective information via the Retrodatabase, a signing appropriate authorization at a bank branch is also required.