Quick Answer: Israel tracks individual creditworthiness through two parallel systems. BDI Code (Bureau of Direct Information) is a private company that aggregates court judgments, Execution Office files, and registered bounced checks from public records. The Bank of Israel's centralized credit registry, established under the Credit Data Law 5776-2016, captures positive and negative payment data shared by licensed banks and credit providers. A negative record on either system can block a foreign national from opening a bank account, obtaining an Israeli mortgage, or passing a landlord's credit check. Records do not disappear when you leave Israel. They follow you until the retention period expires or you take active steps to close the underlying file and submit a removal request.

Many foreign nationals discover their Israeli credit record at the worst possible moment: when they return to Israel years after a business deal went wrong, or when they try to rent an apartment and the landlord's BDI check turns up an old Execution Office file they thought was resolved.

Unlike the US, UK, or Australia, Israel has no single comprehensive credit bureau with a familiar scoring model. What it does have is a patchwork of overlapping systems that banks, landlords, and lenders have relied on for decades. The 2016 Credit Data Law modernised this significantly, but the older BDI infrastructure is still the first thing most practitioners look at. For a foreign national who has had any financial dealings in Israel — a bank account, a rental, a business dispute, a bounced check — understanding how these systems work is essential.

This guide explains how both systems operate, what types of events create a negative record, how long listings remain active, and the concrete steps to access, dispute, or clear your Israeli credit history.

1. Israel's Two-Track Credit Information System

Most countries with developed financial systems operate one or two major credit bureaus that compile a standardised credit report. Israel developed its credit infrastructure in a different sequence, which is why the current landscape has two distinct layers.

BDI Code: the public-records layer

BDI Code (operating today under BDI Coface) was founded in 1956. It collects data from publicly available sources: court judgment databases, the Execution Office (Hotzaa LaPoal) registry, the Central Registry of Checks Without Cover, and company registration filings. Because this data is public, BDI does not require consent to compile it or sell it to subscribers.

BDI subscribers include banks, insurance companies, landlords, employers running background checks, and anyone else who pays for access. The BDI report on an individual (doch yachid) shows:

  • Active and closed Execution Office files — the file number, amount, opening date, and current status
  • Court judgments that have been entered at the court registry
  • Bounced checks registered with the Bank of Israel's Central Registry of Checks Without Cover under Section 10 of the Checks Without Cover Law 5741-1981
  • Bankruptcy orders, financial rehabilitation proceedings under the Insolvency and Financial Rehabilitation Law 5778-2018, and company dissolution data for sole proprietors
  • Liens and encumbrances on property registered at the Land Registry (Tabu) or the Companies Registrar

The Bank of Israel credit registry: the banking-data layer

The Credit Data Law 5776-2016 created a separate, regulated infrastructure. Licensed banks, credit card companies, and non-bank credit providers are required to share credit data with a centralised database managed by the Bank of Israel's Credit Data Services Unit (yehidat nituach netune ashrai). This includes:

  • Loan balances, credit limits, and repayment history (positive and negative)
  • Mortgage payment status
  • Credit card utilisation and delinquency events
  • Overdraft history and bounced direct debits

Unlike BDI, access to the Bank of Israel registry is consent-based: a licensed entity must obtain your written permission before pulling your report. The consumer, however, can access their own report for free.

In Practice: A BDI individual credit report costs approximately NIS 200, ordered online at bdi.co.il or by phone to their consumer line. The report is produced in Hebrew; English-language versions are available for an additional fee. The Bank of Israel credit report is free once per year and available through the Bank of Israel's designated consumer portal at bankisrael.gov.il. Banks routinely check BDI before opening an account — this check does not require your consent because BDI draws on public records. Bank Hapoalim, Bank Leumi, and Mizrahi-Tefahot all use automated BDI screening as part of their account-opening workflow. An active execution file showing unpaid debt over approximately NIS 5,000 will typically trigger an automatic account-opening refusal.

2. What Events Trigger a Negative Credit Record

The key distinction is between events that go directly onto BDI (because they are registered in public databases) and events that go onto the Bank of Israel registry (because they are reported by your bank).

Execution Office files

When a creditor opens an enforcement file against you at the Execution Office (hotzaa lapoal), the file is registered in the Execution Office's national database. BDI monitors this database and records the file on your credit profile within approximately 30 days of its opening. The file entry shows: the creditor's name, the original debt amount, accrued interest and fees, the file opening date, and whether the file is active or closed.

This matters for foreign nationals because an Execution Office file can be opened based on any enforceable obligation — an Israeli court judgment, a recognised foreign judgment, a promissory note (shtar chov), a dishonoured check, or an NII debt order. You do not need to be served in person. If a creditor has a valid basis and your Israeli ID number, the file can be opened without your knowledge.

Bounced checks

A check returned unpaid by the bank is registered with the Bank of Israel's Central Registry of Checks Without Cover under the Checks Without Cover Law 5741-1981. This registration appears on BDI immediately. Three bounced checks within 12 months trigger a more serious status — the account holder is listed as a meretz (bouncer), which restricts their ability to issue new checks for 12 months. Foreign nationals with Israeli bank accounts who write checks on insufficient funds face the same consequences as Israeli citizens.

Court judgments

A court judgment entered against you at the Magistrates Court, District Court, or Labor Court is a matter of public record and appears on BDI. Not every judgment triggers an immediate BDI listing — BDI monitors court databases, but there can be a lag of weeks or months before a judgment is captured. Once a judgment-holder opens an Execution Office file to enforce the judgment, the file will appear quickly and reliably.

Tax Authority and NII debt orders

The Israel Tax Authority (ITA) and the National Insurance Institute (NII / Bituach Leumi) have special statutory powers to collect unpaid tax assessments and social insurance contributions without going to court first. Under Section 7 of the Tax Collection Law 5720-1960, the ITA can issue an administrative collection order that is treated as equivalent to a court judgment for enforcement purposes. These orders are opened at the Execution Office and appear on BDI in the same way as any other execution file.

Mortgage and loan defaults — Bank of Israel registry

Late payments, partial payments, and defaults on Israeli bank loans, mortgages, and credit cards are reported to the Bank of Israel's credit registry by the lending institution. A payment that is 30 days late generates a note; 90 days late moves to a more serious classification. This data is more granular than BDI — it reflects your payment behaviour, not just your enforcement history.

In Practice: Arnona (municipal property tax), water bills, and electricity charges are not automatically reported to BDI or the Bank of Israel registry. However, once the municipality or utility company obtains a court judgment and opens an Execution Office file, that file appears on BDI within about 30 days. Foreign property owners who leave Israel without clearing utility arrears often discover years later that an execution file was opened in their absence and has been generating interest at the statutory rate set by the Finance Minister — currently over 5% above the Bank of Israel base rate — since it was registered. The NII can also register debt orders under Section 7 of the Tax Collection Law for unpaid Bituach Leumi contributions, which triggers the same BDI exposure as a tax authority order.

3. How Long Records Stay on File

Understanding retention periods is critical for anyone trying to plan their return to Israel or secure Israeli financing. Records do not disappear automatically when a debt is paid — the payment removes the underlying liability, but the credit record persists for a defined period.

BDI retention periods

BDI applies its own policies, informed by the Credit Data Law and associated regulations. Current standard retention periods are approximately:

  • Execution Office files: Visible for 7 years after the file is closed. A file that is paid and closed today will remain visible on BDI until 2033. If the file is never closed, it remains visible indefinitely alongside accumulating interest and fees.
  • Bounced checks: Registered bounced checks remain on the Central Registry of Checks Without Cover for 5 years from the date of the dishonoured check under the regulations to the Checks Without Cover Law.
  • Court judgments: Approximately 7 years from the date of the judgment, though the listing is typically marked as "satisfied" or "closed" once an Execution Office file is closed after full payment.
  • Financial rehabilitation proceedings: Records of insolvency and financial rehabilitation orders under the 2018 law persist for 10 to 15 years. A discharge order at the end of the rehabilitation period does not automatically remove the listing.

Bank of Israel registry retention

Under the Credit Data Law and its implementing regulations, positive credit data is shared for 24 months on a rolling basis. Negative events — defaults, late payments — are retained for a longer period, generally 7 years from the date the account was closed or the delinquency was cured. The consumer's credit report shows data from across licensed reporting entities for the applicable retention period.

Property liens: a separate issue

A property lien (shiabud nechasim) registered at the Land Registry on a debtor's Israeli real estate is not automatically removed when a debt is repaid. The creditor must formally release the lien, and the release must be registered at the Tabu. Many foreign nationals who sell inherited or purchased Israeli property discover outstanding liens they never knew about — registered years earlier by creditors who were never paid.

In Practice: The single most expensive credit mistake made by foreign nationals leaving Israel is not closing Execution Office files before departure. Paying the debt is not enough on its own. The file must be formally closed at the Execution Office — this requires submitting a closure request with proof of payment and paying a closure fee of approximately NIS 80 to 150. The Execution Office then issues a closure certificate (teudat siur). Without this certificate, the file remains "open" on BDI even if the debt is fully paid, because BDI reads file status from the Execution Office database — it does not independently verify whether the underlying debt was satisfied. An unclosed file with zero remaining debt still appears as an active negative record to any subscriber checking BDI. Obtain the closure certificate immediately after paying any execution file debt.

4. How Credit Listings Affect Foreign Nationals in Practice

The practical consequences of a negative Israeli credit record depend on what you are trying to do. The impact is most severe in four areas.

Opening a bank account

All five major Israeli banks — Bank Hapoalim, Bank Leumi, Mizrahi-Tefahot, Bank Discount, and Bank Mercantile Discount — run a BDI check as part of their account-opening process. For non-residents and new immigrants, this check is standard regardless of the type of account requested. An active execution file will typically generate an automatic refusal for a current account, and the branch manager has limited discretion to override the system. A closed file that is within its 7-year retention period may result in a refusal or require senior approval. Foreign nationals who need an Israeli bank account for a property purchase or business activity should clear all BDI records before applying.

Mortgage applications

Bank of Israel Directive 329 limits non-resident mortgages to 50% of the appraised property value. On top of this structural constraint, banks apply credit checks at both the BDI level (for public enforcement history) and the Bank of Israel registry level (for banking payment behaviour). An active execution file or a pattern of late payments recorded in the registry will typically result in a mortgage refusal, regardless of the applicant's foreign income or assets. The mortgage team's credit committee is separate from the retail banking team; a branch manager who is willing to open an account cannot override the mortgage credit decision.

Renting property

The residential rental market in Israel has no statutory prohibition on landlords running credit checks. BDI provides a consumer-consent-based rental screening product that many landlords and property managers use for apartments renting above NIS 6,000 per month. A negative BDI record visible to the landlord can result in a rental refusal or a demand for a larger bank guarantee (up to six months' rent instead of the statutory three-month deposit ceiling). For foreign nationals renting commercial premises, credit checks are standard, and a bad BDI report often means the landlord will require a bank guarantee from an Israeli bank rather than a cash deposit.

Business credit and supplier relationships

Israeli suppliers and distributors frequently check BDI before extending trade credit to a new customer or business partner. A sole proprietor (osek patur or osek murshe) with a BDI listing is treated differently from a company, because BDI reports on the individual behind the business. A new immigrant setting up a business in Israel who has a prior BDI listing from a previous visit or earlier Israeli business activity will find this affects supplier credit terms, particularly in retail, construction, and hospitality sectors where trade credit is standard.

In Practice: Foreign nationals making Aliyah are not exempt from BDI listings. An Oleh who arrives with an unresolved Execution Office file from a prior visit — for example, a landlord dispute, an unpaid customs duty, or a personal loan — will face the same account-opening and mortgage obstacles as any Israeli debtor. The Jewish Agency and Ministry of Aliyah and Integration (Misrad HaKlita) do not clear credit records as part of the absorption process. Olim who suspect they may have old Israeli financial obligations should request their own BDI report and Bank of Israel credit report before arriving, resolve any active files from abroad using a Power of Attorney, and arrive with the closure certificates in hand. This avoids the worst-case scenario of discovering an active file at the bank counter after landing.

5. How to Access Your Israeli Credit Records

Both the BDI report and the Bank of Israel credit report are accessible to the individual they concern. The process differs for each system.

Requesting your BDI Credit report

BDI provides individual access to personal credit reports. Options include:

  • Online: Via the BDI website at bdi.co.il. You will need your Israeli identity number (mispar zehut), passport details for foreign nationals, and a payment of approximately NIS 200 by credit card. The report is delivered as a PDF in Hebrew.
  • By phone: BDI operates a consumer information line. You can request a report and receive it by post or email within a few business days.
  • English-language reports: BDI provides English summaries for an additional charge, which is useful for non-Hebrew speakers who need to understand the report's contents before taking action.

The BDI report shows every item on file: active and closed Execution Office files (with file numbers), court judgments, registered bounced checks, and company-related records. Each item shows the source, date, amount, and current status.

Requesting your Bank of Israel credit report

Under the Credit Data Law, every individual is entitled to one free credit report per year from the Bank of Israel's credit registry. Additional reports within the same year are available for a modest fee. The process:

  • Access the Bank of Israel credit report portal via bankisrael.gov.il or through a link on the Ministry of Finance website.
  • Authenticate your identity using your Israeli ID number and a One-Time Password sent to the mobile phone registered with your Israeli ID.
  • Non-residents and foreign nationals who do not have an Israeli ID number must apply through an alternative identity verification process, which may require visiting a Bank of Israel branch or an authorised agent.

The Bank of Israel report is considerably more detailed than a BDI report for someone with active banking history: it shows every loan, credit card, and account balance shared by licensed institutions, along with the payment performance for each one over the retention period.

Checking from abroad

Both systems can be accessed remotely with the right documentation. For the BDI report, an Israeli attorney holding a Power of Attorney can request the report on your behalf. For the Bank of Israel registry, the identity verification step requires either an Israeli digital ID or a visit to an authorised point. If you do not have an Israeli ID number (for example, if you are a foreign property owner who has never been registered), you may only have data in BDI from public sources — the Bank of Israel registry records banking data, which requires a licensed account with an Israeli institution.

In Practice: A foreign national who has never held an Israeli ID number but owned Israeli property through a purchase or inheritance will not appear in the Bank of Israel credit registry — that system only captures data from licensed Israeli financial institutions about their account holders. Their BDI record, however, may show property liens registered at the Tabu, any court judgment obtained against them in Israeli civil proceedings, and any Execution Office file opened based on a recognised foreign judgment or Israeli court order. The practical implication: for foreign property owners with no Israeli banking history, a BDI check tells the full story. For Olim and long-term residents with Israeli bank accounts, both reports are relevant and both should be reviewed before any major financial transaction.

6. How to Dispute or Clear a Negative Record

Clearing a negative credit record in Israel is a two-stage process. The first stage is resolving the underlying cause — paying the debt, closing the execution file, satisfying the judgment. The second stage is formally requesting the removal or update of the listing on BDI or the Bank of Israel registry.

Step 1: Resolve the underlying cause

Execution Office files: Contact the creditor to agree on payment. Once payment is made, submit a closure request (bakasha lesiyum tik) at the Execution Office with proof of payment. Pay the closure fee of approximately NIS 80 to 150. The Execution Office issues a closure certificate (teudat siur) within a few days. Keep this document permanently.

Bounced checks: Pay the face amount of the dishonoured check to the holder. The Central Registry listing can be removed once the check is paid by submitting a completed removal application with the paid-check evidence to the Bank of Israel. The registry requires specific forms; contact the Bank of Israel's Payment and Settlement Division for the current procedure.

Court judgments: If you dispute the judgment itself, you must apply to the court that issued it for a stay of execution or to set it aside — this requires valid grounds such as procedural defects, lack of proper service, or a substantive defence that was not heard. If you accept the judgment and want to pay it, contact the judgment creditor directly or through the Execution Office file. Full payment entitles you to request that the file be marked "closed and satisfied."

Tax Authority and NII orders: Contact the relevant authority directly. For ITA orders, the responsible officer (pakid givia) at the local assessment office can confirm the outstanding amount including interest and issue a payment confirmation. For NII, the relevant regional branch handles collection disputes. Both authorities will issue a closure document once the debt is cleared, which can be submitted to the Execution Office if an enforcement file was opened there.

Step 2: Request BDI removal

Once you have the closure certificate or payment confirmation, submit a formal written removal request to BDI Code. The request should include:

  • Your full name and Israeli identity number (or passport details)
  • The specific BDI reference for the item you are disputing
  • The closure certificate from the Execution Office, or the payment confirmation and release document for the underlying record
  • A covering letter specifying the correction you are requesting

Under the Credit Data Law, BDI must respond to a consumer correction request within 30 days. If BDI rejects the request or fails to respond, you can escalate to the Privacy Protection Authority (reshut haganat hapratiyut), which has oversight authority over credit data companies.

Step 3: Dispute Bank of Israel registry entries

If your Bank of Israel credit report contains an error — for example, a late payment that was actually made on time, or an account listed as open after it was closed — you must first contact the institution that submitted the incorrect data. The licensed institution is responsible for correcting inaccurate submissions. If the institution does not correct the entry within a reasonable time, the Bank of Israel's Banking Supervision Department (pikuach al habankim) has a consumer complaints procedure that can be used to compel correction.

In Practice: The most common obstacle to clearing an Israeli credit record from abroad is not knowing the Execution Office file number. Without the file number, the Execution Office and BDI cannot pinpoint the relevant record. The file number appears on any correspondence from the Execution Office, including any attachment order sent to your Israeli bank. If you never received such correspondence, an Israeli attorney holding your Power of Attorney can conduct an Execution Office database search by your Israeli ID number or name to identify all active and recently closed files. This search takes approximately 30 minutes and typically costs NIS 300 to 500 in attorney time, plus any Execution Office search fees. It is the necessary first step before any remote credit-clearing effort can proceed.

7. Practical Steps by Situation

The right course of action depends on whether you are in Israel, planning to return, or dealing with Israeli financial obligations from abroad.

If you are leaving Israel and have outstanding debts

  • Request your BDI report and your Bank of Israel credit report before departure. Identify every negative item.
  • For each active Execution Office file, pay the full amount outstanding (principal, interest, and execution fees), then obtain the closure certificate. Do not leave Israel without the closure certificate in hand.
  • Clear any registered bounced checks. The 5-year retention period runs from the check date, not from when you pay it — so early resolution shortens the exposure period.
  • If you cannot settle all debts before departure, grant a Power of Attorney to an Israeli attorney authorising them to act on your behalf at the Execution Office, with banks, and with BDI. Specify that the power covers execution file closures and credit record corrections.
  • Check whether any Israeli tax filing obligations remain outstanding with the ITA. Unfiled returns can generate estimated assessments that become debt orders without your knowledge.

If you are returning to Israel after an absence

  • Before arrival, request your BDI report (possible online with your Israeli ID number) and identify any items that need clearing.
  • Resolve active Execution Office files from abroad using a Power of Attorney before you land. Arriving with clean records avoids the frustration of being refused a bank account at the branch on your first day.
  • If files cannot be resolved remotely, budget your first weeks in Israel to include visits to the Execution Office (any branch, by appointment via the Ministry of Justice's Takdin system), the ITA assessment office, and NII.

If you are a foreign property owner with Israeli debts you were unaware of

  • Commission a title search (nesach tabu) on your property to identify any registered liens or encumbrances. The Tabu can be searched online at gov.il with the property's block and parcel numbers (gush and chelka). The search fee is approximately NIS 65.
  • Request a BDI report in your name to see any execution files or judgments entered against you personally.
  • Contact the relevant municipality or utility to check for any outstanding arnona, water, or electricity arrears on the property before they escalate to court proceedings.

If you are disputing a listing you believe is wrong

  • Gather the documentation showing the error: payment receipts, bank statements, closure certificates, or correspondence with the creditor.
  • Submit a formal written dispute to BDI Code with supporting documents. BDI must respond within 30 days.
  • If BDI rejects your dispute or does not respond, file a complaint with the Privacy Protection Authority in writing.
  • For Bank of Israel registry errors, contact the relevant financial institution first, then escalate to the Banking Supervision Department if the institution does not correct the entry within 30 days.

Frequently Asked Questions

Israel has two parallel credit information systems. BDI Code is a private company that has collected publicly available financial data — court judgments, Execution Office files, bounced checks — since the 1950s. Since 2019, the Bank of Israel also operates a centralized credit registry under the Credit Data Law, where licensed banks and credit providers share positive and negative payment data. Together, these two systems give Israeli lenders and landlords a fairly complete picture of a person's financial track record, though neither produces a single numeric score equivalent to a FICO score.

Yes. BDI Code captures data from Israeli public records — court judgments, Execution Office files, and registered bounced checks — regardless of where you currently live. If you left Israel with an open execution file or an unsatisfied judgment, that record remains visible on BDI for up to 7 years after the file is eventually closed. Foreign nationals who return to Israel and try to open a bank account or rent an apartment can find old records still active, even after paying the underlying debt, because the Execution Office file was never formally closed.

Not automatically. Arnona, water, and electricity debts held by the municipality or utility company are not directly reported to BDI or the Bank of Israel registry. However, once the municipality or utility company obtains a court judgment and opens an Execution Office file to collect, that file appears on BDI within about 30 days. Unpaid arnona can also result in a lien on the property title at the Land Registry, which is a separate form of credit damage that blocks future sales and mortgages regardless of what any credit report shows.

The first step is closing the underlying cause. If an Execution Office file is the source, obtain a closure certificate (teudat siur) from the Execution Office after paying the debt and the NIS 80 to 150 closure fee. Then submit the certificate to BDI in writing with a formal removal request. BDI must process the request and remove or update the listing within 30 days under the Credit Data Law. If a court judgment was the underlying trigger, the judgment remains on record but can be marked as satisfied. The full listing disappears at the end of the applicable retention period — typically 7 years from closure of the file.

Yes, significantly. Israeli banks run both a BDI check and a Bank of Israel credit registry check as standard parts of mortgage processing. An active Execution Office file, an unsatisfied court judgment, or a pattern of late payments shown in the Bank of Israel registry will typically result in a mortgage refusal or a substantially reduced loan-to-value offer. Non-resident buyers are already limited to a 50% loan-to-value under Bank of Israel Directive 329, and a negative credit record makes approval even harder. Clear any outstanding records before beginning the mortgage application process — this can take several months if files need to be closed and the BDI listing needs time to update.