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Kreditværdighed
What is Kreditværdighed?
Kreditværdighed is an evaluation of a borrower’s ability and willingness to repay debts. It is essential for lenders when deciding whether to extend credit and under what terms.
How does it work?
Lenders assess Kreditværdighed by reviewing various factors, including income, debt levels, and payment history. A high creditworthiness rating indicates a low risk for lenders, while a low rating suggests a higher risk of default.
Common rules or requirements
| Rule/Requirement | Description |
|---|---|
| Stable income | Crucial for demonstrating the ability to make loan payments. |
| Low debt-to-income ratio (DTI) | Preferred, indicating manageable debt levels. |
| Timely payments | Positively impact creditworthiness. |
| Credit utilization below 30% | Generally recommended. |
| Longer credit history | Can enhance creditworthiness. |
Example
Imagine you are an expat in Denmark looking to buy a car. Your Kreditværdighed will be assessed based on your income, existing debts, and payment history. If you have a good credit score, you are more likely to receive favorable loan terms.
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