Friday, January 27, 2023

What You Should Know about Getting a Kredittsjekk?

Getting a credit check can be quite intimidating, especially if we do not know everything that goes into it.  After all, having the ephemeral “credit bureaus” generate a report on our financials is not exactly something that I would call fun.  Yet, it remains an important aspect of borrowing money and navigating adulthood in general.

So, what is there to know about it beyond the obvious?  You might be surprised by just how much information there is out there about this topic.  In this article, I will be condensing those details down into something a bit more manageable and digestible (at least, I hope).  

You may want to start by checking out a resource like this one,, to get a bit of background information.  However, I will also be covering some of this, so do not worry if you want to just get right into it.  Keep reading!

The Basics: What to Know about Credit Reports

So, I will start off with explaining what they list out to the lenders that you are sending them to.  It is pretty simple, really: they show a list of your current debts, any payment history for bills, and what other loans that you have taken out (even if you have paid them back now).  This is to give them a wholistic idea of your current financials and what kind of borrower you will be.

IInzOQNOjmD8YhkVA GYiFS Pxr800swnZznLj0hV6RtTm5z3byLZ0NDNSauvAj0EzqKVkZUa5FRkjZJ M2dzGdZ48HMzjYsKT930CzeVT16lxrEVG8uL ZVg4iufQ4x3Fo028 47kL4EfMNHuAf WxdNhLb3CKVV93DSHGN0goG 8KSocdve enYdNzfpCP6XCIvwHow do financial institutions and other lenders utilize them, though?  This is where it gets a bit more complex, as I am sure you can imagine.  

For the most part, they are used to determine whether a specific lender will approve you for a loan or credit agreement.  That could be a credit card or a personal line of credit in addition to the traditional styles of loans.  However, just keep in mind that there are other entities that can check your score.

This could be a landlord, an employer, or an insurer, as just a few examples.  More than likely, you will not know who is checking on your report, just that someone performed an inquiry.  There are a few different agencies out there that collect credit information, but there is usually not a difference between the reports that get generated.

Crunching the Numbers: What do They Mean?

In terms of forbrukslån uten kredittsjekk, there is a scale of scores that have a significant amount of meaning.  You may know that it ranges from three hundred to eight hundred and fifty, but do you know what each section on that scale means?  What about the differences between FICO and VantageScore models?

3YWqs7TSD3uxskcPPwWHBShLBumBpn2dCQpLwi9yrMKglF8m z4KkGZP5h0Hr2ptsdXCMQ4otay2Vz2adxTAzzzrwejAZy1ycTsgEC7Y7W0UEvFor the former, it starts at three hundred of course.  Poor credit is from that to five hundred and seventy-nine.  Fair is five hundred and eighty to six hundred and sixty-nine.  Good is six hundred and seventy to seven hundred and thirty-nine.  Very good is seven hundred and forty to seven hundred and ninety-nine, and excellent is eight hundred to eight hundred and fifty.

The other model is similar in the starting and stopping point, but the figures are slightly different.  So, very poor credit is three hundred to four hundred and ninety-nine.  Poor is then five hundred to six hundred.  Fair is six hundred and one to six hundred and sixty, and good is six hundred and sixty-one to seven hundred and eighty.  Finally, excellent is seven hundred and eighty-one to eight hundred and fifty.

Just keep that in mind as you apply to borrow money or for any credit agreements.  Your score might have different meanings depending on the metric that the lender or institution uses, hence why I have laid it all out for you here.

Why Should We Aim High?

There are some credit cards that do not require high credit or better, but they tend not to have the greatest interest rates.  You can see some information on that on this page.  That may not seem like it matters much but trust me when I say that you will be thankful once you start to boost your score.  It has a shocking number of ramifications on our financial lives.

zJtQT4yoYvd78foqGsI6scu9uRNZbBZ6dKBjroVUPzO9uXjnzJTgegWjTt52YcvXqgj19tJdanWpUyE8mu0SANkasBSSEEu87So g8BxhO1Iop30RbdugCxuWVWCjxGexdFzAewQKdGh3Rs dO1t7HcSE9EYwt7uGBNSbNO P eQ86FwwrqCqe 6Py1TXN5mP1jpgQGenerally, you will notice that your credit agreements come with more rewards such as cash back or redeemable points.  Of course, interest rates or APR percentages tend to be lower as well, which is the main draw of boosting a score.  Finally, you have a much higher chance of being approved wherever you decide to apply, allowing you to shop around for the best rates more effectively.

Final Thoughts: Why this Matters

If you are still not certain why any of this really matters, do not worry.  It can be confusing to say the least, and for a long time I had no idea why I needed to care.  However, as I began to finally listen to the older adults in my life and did some of my own research, it became a lot clearer.

Here is one more resource that you can utilize to learn more, though for my concluding thoughts I will offer a few more insights as well.  In terms of why it is important to understand our credit scores and what a credit check is, there are very few things in life that we get for free.  From homes to automobiles (and school for some parts of the world), many of us need to borrow money in order to afford them.

That means that the score reflected on credit checks really matters.  If it is too low, you may not even be approved for important things like a mortgage or an auto loan.  Mortgages are what lets most of us afford to buy a home, so that definitely is something that you should consider if you want to be a homeowner.

So, if you have not been keeping up to date with your finances and checking out this figure, I recommend that you do so.  You won’t regret it.