Negative BDI is one of the terms that strikes fear into the hearts of bank clients in Israel, but the reality is more complex than the public perception. In this article we'll explain exactly what it is, how it affects the ability to obtain financing — and what can be done even in situations that seem hopeless.
What is BDI?
BDI stands for Bank Data Index — Israel's consumer credit data registry, managed by the Credit Data Company. Each time you open a bank account, take a loan, or interact with your bank — the data updates and affects your rating.
What causes negative BDI?
Primary influences on a negative rating:
- Failure to pay debts on time
- Bounced checks
- Periodic overdrafts on credit lines
- Execution proceedings
- Prior insolvency
- Failure to repay loans in full
The critical point: negative BDI does not mean "you can't get financing." It means "standard financing paths are more complex." Our role is to find the path that will work for you.
How to deal with it
1. Understanding the picture
First — request a personal BDI report from the Credit Data Company. The report shows exactly what is registered, when, and why. Sometimes there are errors that can be corrected.
2. Correcting errors
An incorrect data point in the registry can be corrected. The correction process usually takes 30-60 days, and can significantly improve the rating.
3. Choosing appropriate financing paths
There are many non-bank financing entities in Israel that do not rely solely on BDI rating. They examine additional parameters: repayment capacity, collateral, source of income, and more.
4. Improving the rating itself
If time permits, you can work to recover the rating: closing open debts, maintaining proper cash flow, avoiding overdrafts. Within 12-24 months you can see significant improvement.
What we do at Horizon Psagot Group
For clients with negative BDI, we operate on two tracks in parallel: an immediate financing solution through the parties that will agree, and in parallel — a long-term plan to recover the rating, so that within a year or two you'll be in an entirely different position with the banks.
Our view is broad: we examine all aspects together — existing debts, assets, income, potential — and build a plan that works.
Summary
Negative BDI is a hurdle, not a wall. With the right approach, professional advice, and creative solutions — it's possible to progress. The first step is understanding the situation, and the second is choosing an appropriate strategy.
