Today, lenders have many different opportunities to find out your financial situation before granting a possible loan. Depending on the loan, person and company, the control of your financial situation may look a little different.
Why is this check made?
For the lender will be able to see that you actually have an opportunity to repay the loan. However, the very concept of inquiries has confused many and we feel that it is time to find out exactly what it means.
What is meant by requests?
According to the Consumer Credit Act, all lenders must undergo a thorough credit check before granting a loan. In other words, a borrower will not escape a credit report. When talking about credit reporting, there are several companies that offer that service, but they don’t all look the same.
The Information Center (UC) is Sweden’s leading company for credit information on companies and private individuals. A credit report contains a lot of information about you and your finances, but only UC provides the service that we call all inquiries. UC records every request on you, unlike other credit reporting agencies that only register their own. An inquiry means that a company has requested information about you through a credit reporting company. An inquiry contains information about which company you applied for, as well as your results. If you have many inquiries, it lowers your credit rating or credit rating. Many denied inquiries do not look good to a lender and do not directly give any confidence. Even if you have many granted requests, it can show that you have a tendency to often have to borrow, which is also not good.
Therefore, requests are avoided as far as possible.
What does all this mean to me?
You’ve probably noticed that there are a number of lenders who market that they can provide loans without UC, as it is so nicely called. This means that the company uses a credit reporting company other than UC and thus avoids all inquiries. These loans often have a higher interest rate and a lower amount, however, it can be a simple solution for both parties. If you know you have many inquiries, we would suggest that you look at a loan that does not use UC. It will increase your chances and not affect your credit rating further in the same way.
There are a number of different loans and credits that you can apply directly with BankID or similar today, as well as without UC.
Also, many of these do not ask to know what to spend the money on, which simplifies the process even more. However, it may be good for you to stop and check why and how it turns out that you have so many requests and what you can do to improve your situation in the future.
If you have many debts, it may be worth looking at a more long-term solution with an adviser, or applying for a mortgage loan. Either way, there are opportunities to borrow with many requests if you borrow without UC, but the amount and interest rate will be affected as you surely understand. We suggest that you read on our website to find out as much information as possible before making a decisive decision.