Credit change

The word credit change can relate to several topics, but the most common understanding of the term is that there is a change in the debtor's credit rating(debtor rating) or credit relationship.

An increasing number of companies have become adept at running credit checks on customers before granting credit and loans. Credit checks can be done in many ways and using different tools.

Among the most common methods for credit checks is the use of specialized tools - such as Qatchr. Here, companies can look up debt registers where bad payers are registered, among other things.

There are also companies - especially banks and mortgage companies - that use their own data and tools for credit scoring.

If a company or bank chooses to use their own sources for credit checks, these are often supplemented with external tools and data.

The credit check is used to assess whether a customer can take out a loan or credit - and possibly under what conditions, such as debt size, credit period etc.

Credit changes often cover information that becomes available after the credit or loan has been granted that may affect the ongoing agreement.

Why are credit changes interesting?

Changes in a customer or borrower's credit situation during the life of the loan or credit cycle are at least as relevant as the information on which the loan was originally authorized.

Changes in the customer's financial circumstances may affect the customer's ability to settle their debt or credit to their creditors.

The financial situation of businesses and individuals is constantly changing throughout life - for better and for worse.

Therefore, lenders will inevitably find that the borrower's financial situation changes during the term of the loan.

How do I get information about credit changes?

There are several ways you can monitor credit changes.

As a business, you can manually look up your creditors or borrowers and keep an eye on their credit situation yourself.

However, manual workflows can be time-consuming and cumbersome - especially if you manage many credits and loans.

Therefore, it can be beneficial to invest in a service that continuously monitors your customers' credit conditions and informs you of credit changes.

At Collectia, we offer Qatchr - a service that can help you monitor a customer's credit situation and give you insight into relevant credit changes.