Of course, creditworthiness varies from person to person and there are as many levels of creditworthiness as there are people. Lenders therefore have different systems by which they calculate the risks of issuing a loan. If the risks are large, it can lead to higher interest rates, smaller loans or complete rejection of the loan.

 

Different levels of credit rating

Different levels of credit rating

 

The Information Center uses a risk score from 0 to 100%, where 0.1% is the best credit score, which calculates the risk that the borrower will not be able to pay for the loan in the next 12 months. Below, we will exemplify three different levels of creditworthiness, which factors determine with and the lender’s perspective of an individual with that creditworthiness level.

 

High credit rating

High credit rating

This person has a fixed income and owns a condominium. The individual may have many credit reports, but have no loans.

For the lender, this is the perfect customer. The borrower has a steady economy and will most likely be able to repay his loan without any problems. The many credit reports are a red flag as it may indicate that the person has applied for many other loans but has been denied. Which means there are risks with lending money that you may not see at once. However, this may be because the customer has made several different applications to compare interest rates. Because of these factors, the borrower will be able to take a large loan with a good loan rate.

 

Average credit rating

Average credit rating

The other person has already taken a larger private loan such as a car loan. The person has a fixed income but lives in a rental right and therefore has greater expenses.

The lender is now not as quick to give a loan. The person has a stable income, but the previous loan makes it less secure that the customer can pay off the new one. However, many people take car loans, which gives the lender a lot of data to look for. The borrower will probably be able to repay the loan and will therefore receive a normal interest rate.

 

Low credit rating

Low credit rating

This person has taken many small loans such as sms loans and the like. It has also taken out loans recently and has payment remarks according to UC.

Because it seems that this person often borrows money and has even. taken recently, the lender must ask what the person is using the money for. How can they be sure that the customer will not take out a new loan shortly after this loan and if it will be able to afford to pay them? These are things that will be carefully examined. Since the person also has payment remarks, one should be extra careful as the customer has apparently had trouble paying his debts. The lender will provide a higher interest rate loan to offset the risks if they choose to issue a loan at all.