Getting a loan or credit card is almost always conditional on sound credit history. What is credit history and how do you know if it is correct? In this guide, we’ll tell you how credit information works, how credit information can be lost, and what can be affected by a default.
What is Credit Information?
Credit information is used to assist the risks of a lender granting a loan to the applicant as well as how solid the client’s finances are. By reviewing your credit history, the lender seeks to manage credit risks to avoid credit losses and to anticipate potential problems.
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For example, when applying for a loan or credit card, the lender will look at the applicant’s creditworthiness. Creditworthiness refers to a person’s ability to repay his debt. It is influenced by eg annual revenue and any default payment entries.
Usually, a credit entry will result in your loan application being automatically rejected. However, there are service providers that also lend to the creditless under certain conditions. One such is Good Finance company. You can get a loan from Good Finance even if you have a credit note. However, in this case, the subscription must not be new and must be paid in full.
How can I avoid credit information entry?
For many, there will certainly be times when there is no money to pay all the bills. In such cases, it is advisable for the consumer to contact the lender and arrange a payment with a new schedule in order to avoid credit information entry. Late payment of an invoice or passage of a parking defect payment, for example, does not in itself give rise to a credit note.
The creditor may file a default credit entry in the Credit Register provided that the invoice is at least 60 days past due date and no new payment agreement has been concluded between the creditor and the debtor to pay the invoice. The creditor must have sent a written request for payment to the debtor at least 21 days prior to the disclosure of the defect entry.
Can I get an unnoticed credit note?
In some cases, however, a creditor may report a person’s default to Good Finance in the event of non-payment of a consumer credit or installment contract. In this case, however, the consumer credit agreement shall include a statement that the credit record holder has the right to disclose the defaults.
The timely payment of consumer credit agreements such as credit card invoice or instant credit agreement is of paramount importance, as failure to pay these bills can result in credit information entry without notice to the customer. When concluding a consumer credit agreement, it is important to take this opportunity into consideration and it is advisable for the consumer to read the agreement very carefully in order to be familiar with all aspects of the contract. In particular, rates on quick loans may be small print on contracts, so it is advisable to read the credit agreement carefully.
Even if the consumer does not have a credit reference, companies may have their own internal default payment records that can be entered without their knowledge. For example, they can register a week’s late payment and use this information with a company in the same group, for example, when approving a new loan application.
How do I check my credit history?
You can check your credit information free of charge using the statutory review right once a year. Credit information is verified by sending a free form written request or a printed and completed form by fax or post to the Finnish Customer Information. The request must be accompanied by your home address, personal identification number, signature and name, and a copy of the Customer Information Notification Letter or a copy of the personalized identity document bearing the signature.