Improving Your Credit Score (BDI): The Complete Guide to Raising Your Score With the Banks

Your credit score is one of the most important numbers in your financial life, and most of us barely know what it says. Improving your credit score can be the difference between mortgage approval and refusal, between a good rate and an expensive one, and between financial peace and constant pressure. This article explains what a credit data report (BDI) is, what affects the score, and how to improve it step by step.

What Is a Credit Score and a BDI Report

A credit score is a number that reflects your financial conduct and the level of risk you pose as a borrower, in the eyes of banks and lenders. In Israel, the information is centralized in the Bank of Israel's credit data system, and the best-known report is the BDI report (along with the Bank of Israel credit data report).

The report includes your financial history: existing loans, credit lines, payment arrears, bounced checks, debt arrangements, liens, and more. The banks check it before every mortgage or loan approval. A low score can lead to refusal even if your income is sufficient.

What Affects Your Credit Score

Factor	Impact	Direction
Paying on time	Very high	Positive
Arrears and bounced checks	Very high	Negative
Credit-line utilization	Medium-high	Negative when high
Number of active loans	Medium	Negative when many
Length of clean history	Medium	Positive
Many credit applications in a short time	Low-medium	Negative

Step 1: Pull and Read Your Report

The first step to improvement is knowing where you stand. Everyone is entitled to receive their credit data report. Review it carefully and check:

• Are all the loans and debts listed actually yours?
• Are there any arrears or incorrect entries?
• Are there old debts that have already been closed but still appear?

Errors in the report are more common than people think, and fixing them can improve the score immediately.

Step 2: Fix and Close Problematic Debts

• Closing arrears - paying off overdue debts is the highest-impact move.
• Handling bounced checks and restrictions - removing an account restriction significantly improves the picture.
• Reducing utilization - constant use of an entire credit line is seen as risk. Lowering utilization improves the score.
• Appealing incorrect entries - if you found an error, you can request a correction.

Step 3: Build a Positive History

A credit score is built over time. To improve it gradually:

• Pay everything on time - automatic standing orders prevent forgetting.
• Reduce the number of loans - loan consolidation of several small loans into one organized loan is viewed positively: a managed client is preferable to a "scattered" one.
• Keep utilization moderate - do not hit the limit every month.
• Avoid many credit applications - each is recorded; many in a short time looks like distress.

Credit Score and Mortgage - The Direct Connection

When you apply for a mortgage, the bank checks your credit score to decide whether to approve and at what rate. A high score = easy approval and a good rate. A low score = refusal or an expensive rate. If you have already been refused, there is a solution: see solutions for bank refusees. Such files require a deep diagnosis and re-validation of the financial profile.

How Long It Takes to Improve a Credit Score

There are no real shortcuts, but there are clear timelines:

• Fixing report errors - almost immediate impact.
• Closing arrears and restrictions - improvement within weeks to months.
• Building a positive history - gradual improvement over several months to one or two years.

Beware of parties promising to "erase your BDI" or deliver instant improvement for a fee. A credit score improves only through proper conduct and genuine correction of the data.

Frequently Asked Questions About Improving Your Credit Score

Can a negative entry be "erased"? A genuine entry cannot be erased, but entries expire over time, and incorrect entries can be corrected. Proper conduct is what improves the score.

Does loan consolidation improve the credit score? Usually yes. Closing several small loans and settling into one organized payment is viewed positively over time.

Does checking my own report hurt the score? No. A self-check is not considered a credit application and does not affect the score.

The First Step - A Free Diagnostic Call

Improving your credit score starts with understanding what is in the report and building an organized plan. The first step is a free initial diagnostic call, with no obligation. Booking a diagnostic call is the start.

Gil Finance helps you understand and improve your credit score ahead of a mortgage: a consultant licensed by the Ministry of Finance, a former senior banking manager at Bank Leumi with over 19 years of experience, deputy chair of the audit committee of the Israeli Mortgage Consultants Association, and a 4.9-star rating across 81 Google reviews. Deep familiarity with the banks' decision-making system, full transparency, and personal guidance. The first consultation is free.