Credit reference

A credit lookup is used to retrieve information about a debtor's credit status, for example by gaining insight into whether the customer is registered in a debt register, such as Experian's RKI or Debitorlist.

If you are listed in a debt register, it means that you are registered as a bad payer with one or more companies.

This information can be used by a company in connection with granting credit, granting a loan or similar.

What does a credit report contain?

There is no set recipe for what a credit report contains, but typically it consists of a search in one or more debt registers, such as Experian's RKI and Debitorlisten.

However, a credit report can also include internal records, payment histories, salary information, tax information, etc.

Hvis der er tale om en virksomhed, kan et kreditopslag også omfatte indsigt i regnskaber, nøgletal osv.

Larger companies that professionally extend credit or offer loans often have their own internal credit lookup tools. These systems can often pull data from many different sources and may even combine them to create a complete financial picture of the customer.

The more sophisticated your credit report is and the more information is gathered from different sources, the more nuanced the picture of your customers' financial situation becomes.

What is the information from a credit report used for?

Most credit reports are made in connection with a new customer relationship, a sale or the establishment of a loan or credit.

In other words, credit reports are used to assess the customer's creditworthiness and thus determine whether the creditor/company wants to extend credit, loans or initiate a longer financial relationship with the customer.

Credit reports can also be used to determine whether a customer should be denied a loan application or debt option, or whether the loan should be granted.

If you are registered in a debt register, you will most likely not be able to take out a loan or get credit today. Being registered in a debt register can therefore have serious consequences for the debtor.

How do you do a credit report?

The easiest way to run a credit report is to purchase access to services that offer debt register searches, including Experian or Debtor List.

These services provide insight into whether the customer is registered as a bad debtor - information you can use in your credit assessment. However, be aware that information about whether or not a customer is registered as a bad payer is not always complete.

By purchasing access to a credit check platform, such as Collectia's own Qatchr.dk, you get much more than just a positive/negative answer from a debt register.

A platform like Qatchr.dk can also provide you with verification of whether the customer lives where he states, CPR checks and recommendations for credit length and credit amount. In addition, Qatchr can also search the debtor list.