Credit reporting companies – This is how information companies work

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A lender offering quick loans is required to carefully examine the potential borrower’s finances on the basis of whether he or she is likely to be able to meet their payment obligations under the loan agreement.

Of course, this can be done through the collection of information from various registers and also from the applicant for the loan, but it is time-consuming and complicated, which is why all lenders employ specialized credit reporting companies. Here you can read more about information companies and which ones are used for so-called loans without UC.

Nationwide credit reporting companies

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There are two types of credit reporting companies, namely those that are considered “nationwide” and thus for registers of every Swedish citizen over 15 years, and those that have a slightly narrower scope of coverage. There are seven nationwide players in Sweden (correct as of June 2016) and they are:

Loans without UC

The lenders who do not use UC AB normally turn to one of the players E-Money or Good Finance. The others in the above list have only very small market shares. The main reason for choosing E-Money or Good Finance is that these two have tailored their information for consumer credit. A lender in, for example, fast loans can get exactly the information needed in just a few seconds by using the products offered by these two operators.

Another reason has to do with the fact that many borrowers prefer to see that UC is not used, but they want to take out loans without UC, and the fast lender who can meet this desire obviously has a competitive advantage.

UC captures everything – so do other information companies

UC captures everything - so do other information companies

Credit information about private individuals is collected in the pipes and it is not communicated with other information companies. This means, for example, that a credit issue at, for example, Good Finance is not visible at E-Money, nor at UC. That the credit issue is not visible at UC can be a big advantage. These two alternative information companies are also generally used a little less diligently overall than the Information Center. For larger loans, control of potential tenants’ finances, subscriptions in telecom and the like, almost exclusively UC is used.

Example

Mona has applied for and been granted five quick loans after credit information at UC in the past year. Now she is applying for a private loan for a slightly larger amount. The lender, who is not impressed with the number of credits and the type of credit, denies Mona the loan.

If Mona had instead chosen to apply for a fast loan without UC

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for example via E-Money, the first five times the number of credit issues at UC would have been zero and, provided that Mona’s finances are in order and that she otherwise meets the requirements to have her private loan granted. , the lender would probably have met her.

In some situations, the fact that E-Money and Good Finance act as “downpipes” can make it easier to get a loan. However, you should not be of the opinion that you are guaranteed to borrow when UC is out of the picture. The lenders who use alternatives to the Information Center are no less serious and do not normally have lower demands on your basic ability to pay than those who employ UC.

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