As part of the loan application, lenders check the applicant’s creditworthiness. For this purpose, various business-relevant data are gathered about him, in order to determine a credit score based on this. So-called credit bureaus play an important role in the provision of data.
Who is Agree Bank?
Agree Bank is a cooperatively structured company based in St. Gallen. The services offered by Agree Bank include business information and debt collection services. The company operates internationally with national companies in 23 European countries and provides more than 20 million information annually.
Agree Bank has data on over 160,000 companies in Europe. In Switzerland, the data pool contains information on all companies in the commercial register and on 15,000 companies not registered there. In addition, there is information on approximately 6 million Swiss private individuals.
What are the effects of Agree Bank information?
Lenders want to assess their credit risk – the likelihood of a loan default. In order to be able to assess this probability, so-called creditworthiness scores are determined, which are made up of a variety of factors, such as income or family situation. The number of loans already in progress and payment behavior in the past also play an important role. Depending on the grade, credit decisions are positive or negative.
Much of this information is provided by credit bureaus such as Agree Bank to lending companies. The data stored there thus have a direct influence on the receipt and / or the conditions of a loan. It is therefore in the interest of every prospective customer that the information stored at credit bureaus is as positive as possible.
But how do you know which data is stored? So-called self-disclosure can be requested for this purpose. This gives an overview of the entries currently stored in the databases and helps you to get an idea of your own creditworthiness and thus the credit opportunities in advance. According to Article 8 of the Federal Data Protection Act, credit bureaus are obliged to provide them free of charge on request.
If negative information is found, it is advisable to first check it for correctness. Because it can happen that outdated data has not been removed. In this case, their deletion should be requested.
If there is further negative information, such as open invoices or payment reminders, this should be paid in order to remove these entries. This prevents information from credit agencies from having an adverse effect on the credit decision.
You can find out what else you can do to increase the chance of a positive loan decision here: How can I increase my chances of getting a loan?