We often get questions about how credit reports work and therefore thought in this article to clarify everything that has to do with credit information. The idea is that this article should be comprehensive and therefore you are welcome to send us an email if there is something missing or unclear.
A credit report can be made
Taken at several companies that provide the information. However, there are a number of different companies that provide the basis for credit decisions; ie a credit report. On a credit report you find mainly financial information over time (over several years) but sometimes also personal information such as your marital status.
The information center provides a service where you once a year (at the time of writing) can see for free how your credit report looks at them.
The purpose of a credit report
The creditor’s perspective (eg the bank with which you apply for a loan) is to provide a basis for the creditor to be able to make a decision on the correct grounds. The better the creditworthiness you have (ie the greater the likelihood that you will pay your debts) the lower the interest rate presented should be, as this means a lower credit risk for adjusting the interest rate. The opposite applies, of course, as well.
The less creditworthiness you have, the worse the loan terms you will receive, because the lender must take a greater risk when they lend money to you. It is through the interest rate that the lender compensates for the risk associated with lending money to you.
What you as a borrower should know is that if you do too many credit reports in the short term, it may be negative from a credit rating perspective – in the absence of a better word. What “too many” means is that no one other than the credit information company that knows and it is related to each company’s credit assessment system and the information in turn is interpreted depends on how the creditor’s credit assessment system looks – also something unknown to everyone except the creditor in question. Therefore, you should be careful about making several credit reports for the same purpose.
If you want to review your existing loans or take a new loan
It is therefore advantageous to go through a loan broker as because we have a special agreement with . We only take one credit report and the banks we share your information with receive then copies (“coping copies”) of the same credit report.
You will always receive a letter from the Information Center on the credit information we have made and copies of the copy copies. This is done so that you as a borrower must know which banks have taken part of your application. There you often get many letters home when you have made an application with us because we compare your situation with many lenders to find the best option for you. However, as I said, we only do a credit report. Some banks may choose to make a credit report with another information company and therefore you also get a copy from there – but it is then the first credit report that is made for our account in connection with your application.
The different companies have completely differentiated credit systems and therefore they do not affect each other’s score. Score is the summary figure that indicates your credit rating. If you have a payment note, it appears on the credit report and it often worsens your chances of getting a loan granted.