Israeli Credit Score System Explained for Olim (BDI vs Dun & Bradstreet)

Why this matters

Israeli credit reporting is fragmented and works differently from the US, UK, or Canada. New Olim cannot just import their FICO score and start with a 750. The Israeli system rebuilds from scratch, which means your first 6 to 12 months matter a lot for getting credit cards, mortgages, and business loans approved later.

The 3 Israeli credit data sources

Israel does not have a single dominant credit bureau like the US. Three systems matter.

1. BDI Coface Israel

Largest consumer and business credit bureau. Scores from 0 to 100 (higher is better):

- 0 to 30: high risk

- 31 to 60: medium risk

- 61 to 80: good

- 81 to 100: excellent

Lenders pull a BDI report for almost every mortgage, business loan, and high-limit credit card decision. Cost to pull your own report: free once per year, NIS 25 to NIS 60 for additional pulls.

2. Dun & Bradstreet Israel (D&B)

Mostly business credit. Useful if you have an Osek Murshe or company. Provides a paydex-style score and trade-line history.

3. Banknet (Bank-shared database)

Run by the Bank of Israel. Tracks across all Israeli banks:

- Account openings and closings

- Overdrafts (Mismach Hari'ot)

- Bounced checks (Cheques Lo Mucharitm)

- Defaults

Banks check this in real time before opening accounts or extending credit. A bounced check shows up across all banks the same day.

What goes into the BDI score

- Payment history. On-time mortgage, credit card, loan payments. Most important factor.

- Account age and depth. Older accounts and longer credit lines help.

- Outstanding debt vs limit. Using less than 30 percent of credit limit is healthy.

- Recent inquiries. Multiple credit applications in a short window hurt.

- Public records. Court judgments, garnishments, bankruptcy.

- Business activity. For self-employed and companies.

How foreign credit transfers (or does not)

Foreign credit data does not automatically populate any Israeli system. But banks accept foreign reports as supporting documentation in 3 situations:

1. Mortgage application. Banks routinely accept US FICO from Experian, TransUnion, or Equifax. UK Experian or Equifax. Canadian Equifax or TransUnion. A clean foreign report (no collections, no bankruptcies, 5+ years of history) is treated similar to a clean Israeli BDI profile.

2. Credit card application. Banks will sometimes accept foreign credit history to grant an initial credit line. Most still want 4 to 6 months of Israeli salary deposits first.

3. Business loan or line of credit. Both BDI and foreign credit reports are considered.

How to present foreign credit:

- Pull the most recent report yourself.

- Translate the report or include a 1-page summary in English (most Israeli bankers read English).

- Provide 12 to 24 months of bank statements from abroad showing payment patterns.

- Notarize key documents only if the bank specifically asks.

What hurts your Israeli credit (avoid in year 1)

Overdrafts (Mismach Hari'ot). Israeli accounts can dip into overdraft easily. Each month with an unauthorized overdraft hurts your record. Avoid by maintaining a positive balance or setting up a formal Misgeret L'Hari'a (overdraft facility).

Bounced checks. Devastating. Even one bounced post-dated rent check in your first year can block credit card applications. Always confirm the balance before each check date.

Late credit card payments. Israeli credit cards usually auto-pay at month-end. Make sure the balance can cover.

Multiple bank account openings in a short time. Banks share data via Banknet. Opening 4 accounts in 6 months looks like financial instability.

Court judgments. Even small ones (NIS 5,000+) show up on BDI for 7 years.

What helps your Israeli credit

Steady salary deposit. Same employer, monthly direct deposit, no irregular pattern.

Bills on time. Electricity, water, internet, phone all paid by Hora'at Keva.

Modest credit card use with full payment. Use 10 to 30 percent of the limit each month, paid in full.

A small personal loan paid on time. Some Olim take a small NIS 10,000 personal loan in year 2 and pay it off over 12 months specifically to build credit history.

Mortgage payments on time. The single largest credit-builder once you have one.

How to check your BDI report

1. Go to bdicode.co.il

2. Identify yourself with Teudat Zehut and a one-time SMS code

3. View and download your report

4. Free once per year, NIS 35 thereafter

Check for:

- Errors in personal info

- Old accounts you closed but still show open

- Bounced checks or overdrafts you do not recognize (potential fraud)

- Court records that should have been cleared

Dispute errors directly with BDI. Resolution takes 30 to 60 days.

Credit-building timeline for Olim

Month 1 to 3. Open Israeli bank account. Set up direct salary deposit. Activate Mitzhar Ashrai (debit card). No credit history yet.

Month 4 to 6. First small credit line offered. Accept it but use sparingly (under 30 percent of limit), pay in full.

Month 7 to 12. Real credit card application. NIS 10,000 to NIS 20,000 initial limit common.

Month 12 to 18. BDI score becomes meaningful. You can request a Misgeret L'Hari'a (formal overdraft line) and a credit limit increase.

Month 18 to 24. Eligible for mortgage on Israeli credit alone (without leaning on foreign history).

Month 24+. Full credit profile. Best rates available.

Special case: Olim with foreign mortgages still active

If you still pay a US, UK, or Canadian mortgage from your old country:

- Tell Israeli banks honestly. They will see it on the foreign credit report anyway.

- The foreign mortgage payment counts as a debt for debt-to-income ratio purposes.

- Bank of Israel rules cap your total payment-to-income at 35 to 40 percent.

- This may limit how much Israeli mortgage you can get until the foreign one is sold off.

Common mistakes Olim make

Ignoring overdraft warnings. Bank fees stack up, and BDI tracks the pattern.

Bouncing a single check. Devastating. A 30-minute call to the bank to confirm the balance is worth it.

Closing the foreign credit accounts immediately. Keep them open if possible. They continue to build foreign history that Israeli banks will consult for major decisions.

Applying for many credit cards at once. Each application generates a BDI inquiry. 3+ inquiries in 6 months looks bad.

Not checking your BDI report. Errors are common. Fraud happens. Check at least annually.

What to do this year

1. Pull your foreign credit report and store it (PDF) for future Israeli banker conversations.

2. Set up a Misgeret L'Hari'a (overdraft facility) at the bank to avoid unauthorized dips.

3. Pay every bill by Hora'at Keva so nothing relies on memory.

4. Apply for a single credit card in month 6 to 12. Use sparingly.

5. Pull your BDI report at month 12 and confirm the data is correct.