Credit Records – What Is It And How Does It Work?

The Credit Information Register contains information on the ability and willingness of every people to pay. Banks, landlords, and companies can use this information, for example, when they investigate the background of a borrower or job seeker. Credit history shows how peoples have paid off their loans and other payments during their lives. The bank may also see, for example, from the credit history, whether the borrower is worth the risk.

Lending company secures a credit history register, which can be used by any company that wants to verify your solvency and credit history.

The lender wants to know your credit history

The lender wants to know your credit history

Checking your credit information is especially helpful for lenders. Using the information can help the lender avoid unnecessary risks: for example, they may not grant a loan to someone who has a credit default entry. Especially in recent years, peoples have been more indebted than ever, and creditors have faithfully reviewed their credit information.

It is virtually impossible to get a loan if you have an entry in your credit record. This means that you may get instant loans or other instant loans, but banks will not grant you a loan unless you have collateral and collateral. Even in this case, the loan may have very high interest rates.

It is rare for the registry to contain incorrect information or entries. However, it may be a good idea to check your own credit history once a year so you know what it looks like. You can get your credit history free of charge once a year by sending an email to lenders. You can also check  information to see who has verified your credit information and why.

Although the credit history is not public, lenders and other companies can verify the information of the customer applying for credit. In addition, for example, employers have the right to check the register of their potential employees. However, lenders must record in the register who has checked the information and why. Credit information cannot be disclosed without a personal or business ID, only one can check your credit information and get lost in the wind.

A credit history is a good way for lenders to check the financial situation of a prospective customer. See our comparison to find out the best places to apply for credit.

Even an individual has the right to check a company’s credit history. For example, a person may check the credit history of their prospective employer to make sure that the company will pay all their salaries on time. However, an individual cannot verify the credit history of another individual.

Negative Credit History – What is it?

Negative Credit History - What is it?

A so-called negative credit history. This means that only negative entries are made in the register – for example, payment default entries. In some countries, for example, in our neighboring country, there is a positive credit record that records the amount of a person’s loans and the purpose for which the loan was obtained. Many say that a positive register is more comprehensive and that it gives a better picture of a person’s true financial situation.

Many people have wondered whether there will be a positive credit register . However, it is not planned so far, as lenders has said that it would be very expensive to maintain such a register. However, there has been talk of this, and it may be possible that such a positive register will come in time. 

Default Payment – What is it?

Default Payment - What is it?

If the invoice remains unpaid despite the prompts and requests for payment, the person may have a default payment entry on their credit information. It causes the loss of credit information for a certain period of time, usually 2-5 years. You can’t get a default payment due to just a forgotten invoice, but because the invoice hasn’t been paid by the due date, despite the creditor’s prompts or an agreed payment plan.

A default payment entry occurs when, despite voluntary collection, the person has not paid his or her bill. In that case, the case has already gone to the district court and the district court has declared the insolvent person.

If you have a payment failure entry in your information, your whole life will surely be in trouble. For example, you can not rent an apartment, rent a car, get a new loan or credit and pay nothing in installments. However, if you pay off your debt during the time you have a default entry on your credit history, the expense will go away a little faster.

It is always a good idea to ensure that the default payment entry is not included in the information, as it is not easy to live with. Rather, agree and stick to a new due date or payment schedule with your creditor. Sometimes a creditor can give you up to a couple of months of free time if you honestly explain your financial situation. Creditors are eager to help you as long as you are honest with them and your intention is really to pay off your debt as soon as possible.

If you have a debt that needs to be paid off as soon as possible and has already become a payment reminder, you may want to ask for a loan from a friend or family, for example, to pay off the loan. Even though your family has to repay the loans, they are unlikely to take you to debt if the payment schedule is delayed.

Always take care of your payments and invoices in a timely manner so that you do not have to be charged and have a situation where you could get defaulter and lose your credit for years.


The Credit Information Register is a register of the Customer Service of Finland, which provides information on each individual’s own credit information. Every people has his or her own register, which records all possible negative transactions, such as a payment default entry. Lenders can check the credit history of a private individual when it comes to granting a loan. Instead, employers can check their credit history when they want to make sure that their potential employee is in good standing. But individuals can also check a company’s credit history to make sure they’re paying their wages on time.

If the invoices are not paid by the due date and they are collected, the person may have a default payment entry in the credit history. This entry will remain in the data for years, and as a result life will become much more difficult.

Although there has been talk of creating a positive credit register , it is not yet up to date, as Lending company says it is very expensive to maintain it. However, a positive credit history could help lenders get a real picture of a person’s finances. Namely, a positive register also records how much a person has and for what purpose the loan has been taken.

One should always take care of one’s own finances as much as possible to prevent such situations from happening. If you are in a difficult situation, it is better to ask for a loan from your family or friends rather than having to go to debt collection or recovery. If you need financial help, keep in mind that the Guarantee Foundation is happy to help and provide free financial advice!

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