CREDIT SCORING IN CYPRUS: WHAT YOUR SCORE MEANS & WHAT TO DO IF ITS WRONG

Since 15 July 2026, Cyprus has entered a new phase in the assessment of the creditworthiness of individuals and businesses with the introduction of the Credit Score through the ARTEMIS Data Exchange Mechanism, operated by Artemis Credit Bureau.

Legislation 84(I)/2026

Law 84(I)/2026 (Concerning the Activities of Credit Institutions) amends the existing framework governing credit institutions in Cyprus and seeks to further align Cyprus’s banking legislation with EU requirements, including Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property and Directive 2008/48/EC on consumer credit agreements.

Importantly, the law does not establish the ARTEMIS Data Exchange Mechanism. The mechanism has operated for years as a database of credit-behaviour information, allowing participating institutions to obtain credit reports on prospective borrowers.

Law 84(I)/2026 strengthens and clarifies the statutory framework governing ARTEMIS and, most significantly, expressly incorporates credit scoring into its purposes.

The Credit Score is intended to provide banks and other credit providers with an additional tool for assessing creditworthiness and supporting responsible lending.

For borrowers, however, the practical question is straightforward: what does your Credit Score mean, and what can you do if the information behind it is wrong?

What is the Credit Score?

The Credit Score is a numerical assessment of a borrower’s creditworthiness based on information held through ARTEMIS.

It is intended to:

• Place the borrower within a creditworthiness rating scale;
• Indicate the estimated probability of default during the following 12 months; and
• Provide credit providers with an additional tool when assessing a financing application.

The score is based on credit behaviour and the servicing of credit facilities. It is not a record of the borrower’s assets, income or overall wealth, and does not by itself determine whether the borrower can afford a new loan.

What the Credit Score is not

A Credit Score does not automatically approve or reject a loan application.

It is one part of the wider creditworthiness assessment carried out by the relevant credit institution. The institution may also consider:

• Income and financial circumstances;
• Existing financial commitments;
• Credit history and other information available to it;
• Information provided by the borrower; and
• Its own credit and risk-management policies.

Accordingly, a high score does not guarantee approval, while a low score does not necessarily mean that financing will be refused. The final decision remains with the relevant credit provider.

How is the score calculated?

The Credit Score is calculated using a mathematical model based on information held in ARTEMIS. The model takes into account factors relating to the borrower’s current credit activity, past transactional behaviour and credit portfolio.

The score ranges from 1 to 671 and is intended to estimate the probability of default on financial obligations during the following 12 months.

The score should therefore be viewed as an assessment tool, not an automatic financing decision.

How can you access your credit information?

Individuals and businesses have rights of access to personal data held about them through ARTEMIS.

Depending on the applicable legal framework, a borrower may seek information concerning:

• The personal and credit data held about them;
• The result of their Credit Score;
• The categories of data used in the scoring process; and
• Where automated processing is involved, relevant information about the scoring and factors affecting the assessment.

These rights remain subject to applicable legal limitations and data-protection requirements.

Who can access your credit information?

ARTEMIS credit information is not publicly available. Access is restricted to authorised recipients under the applicable legal and regulatory framework, including relevant credit institutions and other permitted credit providers.

Information must be accessed and used for permitted purposes and remains subject to confidentiality and data-protection requirements.

What if the information is wrong?

The accuracy of the information underlying a Credit Score is critical. An inaccurate, incomplete or outdated entry may affect the assessment of a borrower’s creditworthiness and, depending on the circumstances, a financing application.

Borrowers should therefore check:

• Whether the information held about them is accurate and complete;
• Whether it is up to date;
• Whether information has been attributed to the correct individual or business; and
• Whether any information should be corrected or rectified.

Applicable data-protection legislation may provide rights of access and rectification in relation to inaccurate personal data.

Credit information and court proceedings

Credit reports and information relating to the scoring process may become relevant in legal proceedings, depending on the circumstances.

They may assist in establishing:

• What information was held about a borrower;
• Whether it was accurate and up to date;
• Whether inaccuracies were subsequently corrected; and
• Whether the information or resulting Credit Score was relied upon in a financing decision.

What can you do if your application is refused or adversely affected?

If a financing application has been refused, delayed or otherwise adversely affected, individuals and businesses may consider:

• Requesting access to the information held about them;
• Reviewing the Credit Score and underlying information;
• Identifying inaccurate, incomplete or outdated information;
• Requesting correction or rectification where appropriate;
• Establishing whether automated processing was involved;
• Keeping records of requests, responses and supporting documents; and
• Obtaining legal advice on potential further action, including regulatory or court proceedings.

 Conclusion

The introduction of credit scoring adds an important new dimension to credit assessment in Cyprus. The Credit Score does not, however, determine the outcome of a financing application on its own.

For borrowers, the key is to understand both the score and the information behind it. Where that information is inaccurate, incomplete or outdated, knowing how to access and challenge it may be just as important as knowing the score itself.