Credit register

What it means

A credit register is a shared database of loans and how they are repaid. Banks run a joint register, non-bank lenders their own, and the National Bank of Slovakia keeps the register of bank loans and guarantees granted to businesses.

It is not a blacklist: a clean history is recorded just as faithfully, and that is what makes the register usable for judging creditworthiness. It never learns the reason for a delay, only the days and the amount.

A credit register tracks only loans, leases and similar financial obligations. Debts to the state, to health or social insurers, and enforcement proceedings are kept elsewhere, in the lists of tax debtors, insurer debtors and the register of enforcement. A bank checks all of them on an application, so a clean credit register on its own guarantees nothing.

How it works in practice

The bank looks into the register on every application, including a working capital loan or a card limit. For a small company the director’s personal record weighs too, since the director usually stands as guarantor.

You can request your own extract from the register operator. A wrong record, though, is corrected by the creditor who reported it, not by the register, and on refinancing the new bank sees the whole history.

Leasing companies report to the non-bank register too, so every lease on a company car or machine appears there. Before a loan application we go through all running contracts with the client so they match what the bank will see and no unexplained liability is left in the papers.

What to watch out for

An unpaid phone bill or card instalment does not sort itself out. The delay stays visible in the register for years after payment and surfaces exactly when the firm needs a loan for a contract already under way.

Applying to several banks at once. The register as a rule records the enquiries themselves, and a string of look-ups in a short time looks like a firm chasing money at any price. It is better to prepare the documents in advance and approach one or two banks.