The credit rating can be described as a measure of the borrower’s ability to pay and is used, among other things, by credit institutions and banks when assessing loan applications. Someone with a good credit rating can easily be granted a loan at a low interest rate, while the person with less good grades may need to have a co-applicant in order not to be denied. A weaker rating also means a higher interest rate.

The most common is that lenders use the credit information company UC to obtain the applicant’s credit rating. There the grading system reads – the lower the number the better, and can be anything between 0.1 and 100.0. You can easily and easily see your rating in the CredLets app. Do not despair if you are not completely satisfied with what the app shows. There are steps you can take!


Five ways to improve your credit rating

credit rating

The first step when it comes to improving his credit rating at UC is to find out what the starting position is. You can do this easily by downloading the CredLets app for iOS or Android and logging in with BankID. The app is free and developed in collaboration with UC. It does not affect the rating to check its credit rating in the app and the rating is displayed in real time.

The grade scale at UC is:

  • Excellent (0.1)
  • Very good (0.2 – 0.9)
  • Good (1.0 – 4.0)
  • Less good (4.1 – 25.0)
  • Weak (25.1 – 100.0)

1. Pay all bills on time

bills payment

Payment remarks and debts at Kronofogden are a major reason for a poor credit rating at UC. According to statistics from CredLets, 82 percent of everyone with the credit rating “weak” (25.1 – 100.0) has at least one payment note. It can be compared to those who have the top grade “excellent” (0.1) where only 1 percent have a mark.

Exactly how much impact it has on your rating depends on the number of payment notes, the amount involved and how new or old the notes are. Of course, if you have already received notes, it is difficult to trace them, but it may be good to know that older notes have less impact and keep track of when the old ones disappear.

In addition, it is of course important that from now on all payments and commitments be handled in order not to receive any further remarks. So this step is not something that will change your credit rating overnight, but over time you can see the number in the app fall.


2. Collect several smaller loans for a private loan

2. Collect several smaller loans for a private loan

Another thing that weighs in when the grade is obtained is how many loans you have with the credit institutions. Therefore, if you know that you are on many smaller loans, it might be good to add them to a larger private loan. You do this by applying for a larger loan that covers all smaller loans and then using the new loan to redeem all the old ones.

Not only does it have a positive impact on your credit rating, a pooling of the loans also makes it easier not to miss any payments. Instead of having to pay several invoices each month, you only have to keep track of one. In addition, it can be considerably cheaper with a private loan instead of several smaller loans with high interest rates.


3. Get rid of credits you don’t use

3. Get rid of credits you don

Just as many smaller loans affect the credit rating, it is also affected if you have many credit cards. Quit any credit cards you do not use and save one that you can use if needed. It is also important to continually pay down your credit card debt so as not to impair your credit score. Fully utilized credit is a big factor to a poor rating.


4. Reduce the number of credit requests

4. Reduce the number of credit requests

Many credit requests at UC degrade your credit rating. Among those who have the grade “less good”, the average number of requests is 3.1. It can be compared with those in the group “excellent” where the corresponding figure is 0.5 pieces per person. Many new inquiries in a short period of time can mean that you are applying for multiple loans, which is a risk factor for the lender.

You should therefore avoid making it a habit to buy on an invoice or subscribe to different subscriptions. Namely, each operator will make a credit report to determine your ability to pay. These are then left for 12 months, so if you already have many inquiries, you should wait to apply for loans until they disappear and your grade improves.


5. Steady income and living situation

5. Steady income and living situation

The credit rating is thus a measure of your ability to pay, both today and in the future. It is therefore very good for the grade that you have a steady income. It simply makes it easier for you to repay the loan. The grade also takes into account how much your income is and the development of it. So it’s not just about what it looks like today.

In addition to income, a stable life situation can play a role in creditworthiness. Therefore, trying to stay longer at the same address is preferred. It is not always easy to control neither income nor housing situation, but if you want to improve your credit rating you should try to create as stable a life as possible for yourself.