Credit Reports

When you apply for a loan or order an item on installments, a credit report is made on you. But what does it mean and how is your credit rating affected? In this article, we debunk the most common myths.

MYTH 1: There is only one type of credit report

FACT: There are actually several different types of credit reports. The two most common are the detailed personal information and the slightly less comprehensive personal information micro. When you apply for a loan from a bank, personal information is standard, as they are only allowed to lend you money if they believe you can pay it back. The slightly less extensive micro version can be done when you rent a car or shop on invoice.

MYTH 2: It is only the extensive personal information that can affect my credit rating

FACT: Unfortunately, that is not true. Both personal information and micro personal information are registered and can affect your credit rating.

MYTH 3: If I have a lot of credit information, I get a lower credit rating

FACT: Both yes and no. What primarily affects your credit rating is if you have accumulated a lot of credit information in a very short time. For example by applying for loans at several banks. Lenders understand that something is going on with your personal finances and that you may have difficulty repaying a loan.

MYTH 4: Credit reports never disappear

FACT: Credit information is recorded for 12 months, then it disappears.

MYTH 5: Only banks and companies can do a credit report on me

FACT: You can actually request a credit report on yourself via My Report. It costs a little money, but if you want to get a good overview of your personal finances, it might be a good idea to start here. There you can see what information is registered on you, your existing loans and credits and how your credit rating looks like. This information is not registered and no one but you can redeem it.

Avoid unnecessary credit information by using our loan calculator

Although credit reports can affect your credit rating, it is nothing to be afraid of. But it is actually possible to avoid some unnecessary credit information, for example by using Collector Bank’s loan calculator. With it, you can see how much you can borrow from us without making a loan application. Keep in mind that this is only a simulation, and not a guarantee that your application will be granted.

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