Credit Score in Sweden: What is it and how to improve it? (Credit Check 2023)

I get many questions regarding credit score in Sweden when applying for both credit cards and loans, and how to get a good credit score, so I’ve decided to cover these topics in a bit more detail.

Long story short: staying on top of your credit score is important if you want to have a good financial life. Moreover, it can save you thousands by negotiating a better interest rate for your mortgage or loans at your bank. All you need to do is to check your own credit report with Kreditkollen or minKreditkoll, and use that information to negotiate with your bank. You can also check your credit report unlimited times to see how it improves. I went from a “bad” credit score (1.7% risk) to an “excellent” one (0.1% risk)

What is Credit Score?

A credit score is just a number that predicts how likely you are to pay back a loan on time. Important to know: credit scores are calculated by private companies (not the government), and they use a mathematical formula – called a scoring model – to create your credit score from the information they can gather about you.

For example, some information they consider is

• Your salary
• Your bill-paying history (do you pay your bills on time? how much do you spend?)
• Your current unpaid debt
• The number and type of loan accounts you have
• How long you have had your loan accounts open
• How much of your available credit you are using (do you use all your credit card limit?
• New applications for credit (do you apply for credit cards?, how often?)
• Whether you have had a debt sent to collection, a foreclosure, or a bankruptcy, etc.

Private companies who calculate a credit score often get this data from banks, financial institutions, and public entities. There is no “one” credit score, since there could be many companies calculating this and applying a different formula

In Sweden, there are a few companies providing a credit score, including UC, CreditSafe, and Bisnode.

What is a credit report?

A credit report is a statement that contains your credit score, along with other financial information about yourself. Think of it as a summary of how you have handled credit accounts. Credit reports are important because it tells institutions and people how “financially stable” you are, and how much banks can trust that you will return the money that you borrow.

Do you get your salary every month? Have you been paying your taxes? Do you struggle to pay your credit card? Have you borrowed money from other banks? All these questions are answered in a credit report.

What is a credit check?

A credit check is when someone asks for your credit report. When you buy something on credit, want to start a subscription, get a new credit card, or apply for a loan, a credit report is requested. The credit report gives information about your financial status and circumstances that affect your ability to pay, or repay a loan.

What happens when someone runs a credit check on me?

Luckily, in Sweden, it is your right to be informed when such information has been requested, and you also have the right to receive a copy of what information has been shared with the requesting credit report company. Since there are only a few companies providing credit reports (UC, Bisnode), they will send you a copy to your email address, digital mailbox (Kivra), or physical address.

Each time a credit check is run on you, your credit score will be worse, since they often calculate how often are you asking for loans or credits. So DO NOT trigger credit checks on you frequently, or your score will be ruined!

Also, companies often do not run random credit checks on you if you don’t ask for them. Thus, you don’t need to worry about banks ruining your score for no reason (and you should keep an eye if you get notified about a credit check if you didn’t ask for it).

Can I check my own credit score in Sweden?

Yes. In Sweden, you can use minUC to check your UC score or also use minKreditkoll as an alternative. Checking your credit score does not make it worse.

Let’s look at the differences between minUC vs. minKreditkoll below.