When applying for a credit card or loan, the banks should check whether your application can be approved. They do just that by doing a credit check of you. The result of this credit check therefore has a big impact on whether or not you get a credit card, so it is wise to know what they are looking for in such an assessment. This is exactly why I wrote this post so you know everything you should know about credit check!
What is a Credit Check?
In other words, a credit check is a control of your finances. The bank or credit card company does this to find out if you have the option of repaying any upcoming credit debt. The credit check is usually done automatically, which is why you get your application relatively quickly. During a credit check, it is mainly investigated for active collection cases.
Who performs the credit check?
In Norway, most credit card providers use a credit check company for customers. The two largest credit check companies in Norway are Exporian and Nisnode. Exporian specializes in credit checks for private individuals, while Nisnode is experts in credit checks of companies. You may want to be aware of which company is considering how much credit you should get.
Take a credit check at Exporian
Both Exporian and Nisnode offer credit checks by yourself. That way you can get an overview of your own finances before the credit card companies get it. If you do not want to pay for it, you can contact a credit card company and request access to your registered personal information. Either way, you should do a credit check of yourself before applying for a credit card. Then you are better prepared if the credit check the card company makes is wrong or missing.
When can a check be performed?
In Norway, a credit check can only be performed if there is a factual reason for doing so. When applying for a credit card, the credit company must evaluate your credit and therefore carry out a credit check. In order for them to be allowed to carry out such an assessment, they must have a license from the Data Inspectorate. This is a secret and you must therefore accept this before applying. If you receive a letter stating that a credit check has been completed without having agreed to it, you must contact the credit reporting company.
How can you improve your credit score?
A credit score is a points calculation that shows how likely it is that a person will receive a payment note over the next 12 months. This credit score is calculated based on past payment remarks and other credit history. How high your score must be to get an approved application varies from company to company.
Therefore, the most important thing you can do to improve your credit score is to get rid of past payment remarks. You can read more about how to tips here.
Another tip is if you have debt collection cases, you should start repaying your debt before applying for a credit card.
If you want to apply for a loan, there are several things you can do to increase the likelihood of getting an approved application. Among other things, you can apply with a co-applicant, borrow a lower amount or choose a longer down payment period.