Krediidiliidul

Krediidiliidul, also known as credit scoring or credit rating, is a numerical representation of an individual’s creditworthiness based on their financial history. This system is widely used by financial institutions, lenders, and credit providers to assess the likelihood of a borrower repaying a loan or credit. The concept originated in the early 20th century but has evolved significantly with advancements in data analytics and technology.

In Estonia, the credit scoring system is regulated by the Financial Supervision Authority (Finantsinspektsioon) and relies on credit bureaus that collect and maintain records of individuals’ borrowing and repayment activities. The most commonly used credit scoring model in Estonia is the FICO-like system, though local adaptations exist. A higher credit score indicates lower credit risk, making it easier for individuals to secure loans, credit cards, or favorable interest rates.

Factors influencing a credit score typically include payment history, outstanding debt levels, length of credit history, types of credit used, and recent credit inquiries. Positive behaviors, such as timely repayments and responsible credit management, contribute to a stronger score, while missed payments, defaults, or high debt-to-income ratios can negatively impact it. In Estonia, credit reports are accessible to individuals through credit bureaus like Credits, Finantsregistri, or Eesti Pank’s services, allowing them to monitor and improve their creditworthiness.

While credit scoring helps lenders make informed decisions, it also plays a role in financial inclusion, as individuals with limited or poor credit histories may face challenges accessing credit. Some alternative scoring methods, such as behavioral data analysis, are being explored to provide fairer assessments for those traditionally underserved by traditional credit systems.