Credit records and loans – How they affect getting a loan

Credit records are the lender’s most important tool in evaluating your creditworthiness. This guide explains what credit records are, how they affect loan approval, and how to keep them in good shape.

What are credit records?

Credit records tell the lender how you have handled your previous payment commitments. In Finland, credit records are primarily maintained by Suomen Asiakastieto Oy, which manages the credit registry.

Credit records contain information about:

• Payment defaults and their number
• Current debts
• Debt collection judgments
• Unpaid bills that have gone to enforcement
• Voluntary self-imposed credit bans

How do credit records affect getting a loan?

Clean credit record

If you have a clean credit record (no payment defaults), you get the best loan terms and lowest rates. Most lenders can grant the loan.

Payment default

A payment default significantly complicates getting a loan:

• Most Finnish banks and lenders do not grant loans to people with payment defaults.
• The rate is typically higher.
• Loan amount is smaller.
• Repayment period may be limited.

Multiple credit checks in a short time

If you apply for several loans the same week, lenders may interpret it as desperate financial need. This can raise rates or lead to rejection.

How to check your own credit records

You have a legal right to check your own credit records free of charge once per year. You can do this from:

• Suomen Asiakastieto Oy – online service omatieto.fi
• Bisnode Finland Oy – online service

Check your records before applying for a loan so you know what the lender will see.

How to improve your credit records

1. Pay all bills on time

This is the most important. Avoid late bills that can lead to collection actions.

2. Handle old default marks

Old payment defaults stay in the registry for 2–4 years. If you pay the debt in full, you may request removal of the mark in certain situations.

3. Avoid unnecessary credit applications

Don’t apply for loans you don’t really need. Every application leaves a mark.

4. Don’t take on too many debts

The more active loans you have, the riskier you appear to new lenders.

5. Use loan consolidation

If you have several small loans, consider loan consolidation into one larger loan.

Duration of payment default marks

The duration depends on the type:

• Unpaid bills: 2 years
• Debt collection judgments: 3 years
• Enforcement: 4 years (sometimes longer)
• Bankruptcy: 5 years

The mark is removed automatically after the period, if no new marks are added.

Frequently asked questions

Can I get a loan with a payment default?

Most Finnish lenders don’t grant loans to people with payment defaults. Specialised lenders exist but rates are usually much higher.

Can I apply for a voluntary credit ban?

Yes. Suomen Asiakastieto Oy allows a voluntary credit ban that prevents new loans from being granted. Useful e.g. to protect against identity theft or impulse borrowing.

Does just comparing affect my credit record?

No. Comparison on Lainafy is completely anonymous and leaves no trace. A credit check is only made when you submit an actual loan application.