Kredittscore

Kredittscore is a numerical measure of a person’s creditworthiness used by lenders to estimate the risk of extending credit. A higher score generally signals lower risk, while a lower score suggests higher default probability. The term is commonly used in Nordic countries, but many markets have similar concepts under different names.

Scores are produced from data in credit reports, which may include payment history on loans and credit cards, current debt levels, length of credit history, new credit inquiries, and information about public records such as bankruptcies or tax liens. Data comes from banks, lenders, and sometimes utilities or telecom providers; credit bureaus compile and maintain the files. Models may be proprietary or based on established scoring schemes. In practice, lenders may use a bureau score in combination with their own underwriting criteria.

Impact and use: Kredittscore is used to decide whether to approve a loan or credit line, and to set interest rates, credit limits, and repayment terms. It can also affect rental applications or insurance pricing in some markets. Because it relies on historical data, it may not perfectly predict future behavior and can be affected by errors in the data.

Limitations and rights: Consumers can request access to their credit records, dispute inaccuracies, and seek corrections under data protection and consumer-credit laws in many jurisdictions. Scores can vary between bureaus and models, and a low score does not prevent all credit; it may reflect higher risk pricing or restricted access. To improve a kredittscore, individuals are advised to maintain timely payments, keep credit utilization moderate, avoid unnecessary new credit, and maintain a longer credit history.