Credit reference agency

A credit reference agency is a company whose purpose and activity is to collect and process credit information about individuals and companies.

This information may be disclosed for business purposes to assess a person or company's financial situation, creditworthiness or solvency. Credit information is used by companies, banks and other lenders to, for example, make credit assessments for internal use - for example, when a customer requests credit or loans.

To operate a credit reference agency in Denmark, you must be approved by the Danish Data Protection Agency. There are currently around 14 approved credit reference agencies in Denmark. The list can be seen here: https://www.datatilsynet.dk/hvad-siger-reglerne/vejledning/registre-/kreditoplysninger-

Credit information for credit ratings

In Denmark, we provide all kinds of credit, loans and installment plans - both when we shop at the local lumberyard or borrow money from the bank.

Every time money is lent or credit is granted, it is increasingly based on information from internal and external systems - including CRM/ERP information, but also from credit reference agencies.

Because the credit information you can get from a credit bureau can help enrich your credit approval/credit assessment of the customer - both when granting credit or loans.

Many companies choose to use the information they receive from a credit rating agency solely for their customer credit ratings - while many also choose to add additional information, including their own information from previous transactions with the customer.

There is basically no right or wrong in a credit rating, but generally speaking, the more sources and information that can be included in the credit rating, the better.

Why do credit ratings?

When a company or lender extends credit or loans, there is always a risk involved. The risk is that the lender will not get all or part of its money back from the borrower/creditor. The reasons can be many - from the bankruptcy and death of the borrower to critical changes in financial circumstances.

There are a wide range of measures the lender can take to minimize its risk - including taking a mortgage on the assets being borrowed against. This is often seen when granting mortgages.

By conducting credit assessments of your customers, including information from a credit bureau, you can also minimize the inherent risk of providing loans and credit.

In other words, data from credit bureaus cannot eliminate the risk of granting loans and credit - but limit and minimize it.

Which credit reference agency should I choose?

There are 14 very good credit reference agencies in Denmark, all offering their customers the ability to purchase and access credit information.

You just need to be aware of whether your particular credit reference agency can:

Give you the information you want
Get information the right way (e.g. via API)
Offer processing of your existing data (e.g. credit monitoring, data washing and similar)

Collectia A/S is itself an approved credit reference agency, so we are not objective in who you should choose as a credit reference agency.

Our own platform we call Qatchr is an online credit check platform for businesses. The platform can easily and simply help you obtain credit information, monitor credit and data-watch your customers.