Personal financial health is an important element of a happy life in Norway. Here's how and why you should stay on top of your credit rating with a free credit report.
If you've ever taken a credit card, personal loan, mortgage or other financial product, then you will have a credit rating. It's one of the most important factors in anyone's financial life, but even more so when you're an expat.
The importance of credit reports for foreigners
Applying for a credit card or housing loan in Norway requires a credit history. When you are brand new in Norway, that doesn't exist. You have to proactively work to build a good credit history, so staying on top of your credit report is an absolute must-do. You can check your personal credit score here for free.
Your credit report is a compilation of data about your personal financial conduct. It includes data on how much debt you have in your name, whether you pay bills on time, where you live, where you work, and many other bits of information. Some financial companies keep your credit report updated monthly, while others only notify the credit referencing agencies if and when you miss a payment, or pay late.
Whenever you apply for a financial product, the company will check your credit report in order to assess your risk profile. For example, a bank will check your credit report before approving you a mortgage.
Typically, a credit score is a three-digit number that helps rate your credit report. High credit scores show that you have positive data and therefore low risk, while a low credit score indicates negative information and a higher risk for the lender.
Combating identity fraud
When wrong information is included on your credit report, it could prevent you getting a new credit card or a housing loan. But it could also be an indicator of identity fraud.
Because your credit report affects so many parts of your life, it's really important that the information included is accurate and positive. It's a good idea to check your report at least once per year. You can check your personal credit score here for free.