The main idea is to create a voluntary credit block, which is vital factor to remember. For instance, if you have a credit block on your name, you will be ineligible when creating various subscriptions including mobile subscription and credit card.
Check out this site: besterefinansiering.no/kredittsperre to learn more about voluntary credit block. At the same time, you should know that a credit block means that financial institutions and banks cannot provide credit checks on you. Another important consideration is that a credit block means that it is not possible to take credits and loans in your name.
That happens because banks cannot offer you a loan without conducting a thorough credit check on your behalf. The same thing works for the issuing of a new credit card. Besides, you cannot get any new credit card, meaning you can go further in debt by implementing a voluntary credit block.
Another important limitation of credit block is the inability to create new subscriptions, including electricity subscriptions, mobile subscriptions, and streaming services. Therefore, you can avoid creating a contract with anyone who requires a credit inquiry, which is a vital factor to remember.
Things to Know About Voluntary Credit Block
You should remember that the Norwegian Data Protection Authority has allowed people to get a license to credit information to agencies across Norway with the idea of assessing anyone’s personal information. However, some of them can put a credit block, including Bisnote, Experian, Creditsafe, and Tietoevry.
If you wish to set a block, the first thing you should do is contact each company. Remember that the process is free of charge, and you just must ask them to do it. In the same way, you can ask them to lift the block free of charge.
People often ask why they should put a credit block in the first place. We recommend staying with us for additional information. As soon as you click here, you will learn everything about getting a loan.
Why Should You Do It?
We can differentiate two essential reasons people decide to put a voluntary credit block on themselves. The most common is having plenty of debt, and the goal is to prevent debt from increasing until you repay the one you currently have. The second reason is to avoid being exposed to ID theft and other issues that may happen.
Having a Lot of Debt
For instance, if you have a lot of debt, a credit block can help you get everything in order, which will provide you a peace of mind. For some people that are in debt issues, it is vital to unable them from getting any additional credit that will create further issues along the way.
The best thing about a credit block is its chance to prevent impulse purchases and withdrawals that you have not analyzed and decided to get without entering an impulsive purchasing mode. Of course, you can lift the block by yourself, but the process requires some time.
Therefore, you can wait and think about a purchase you want to make, which will give you a perspective and help you understand whether it will work for you or not.
Besides, suppose you have maxed out your credit card and you cannot use it anymore until you repay the debt, while you cannot afford getting additional cards. In that case, we recommend you block yourself from other lending products until you repay your current debt.
The biggest reason people choose to put voluntary blocks in place is to prevent unnecessary credit and impulse purchases. This is important for people deep in debt and cannot control themselves outside.
Avoid ID Theft and Other Similar Issues
Another common way people decide to protect themselves from potential identity thefts, which are common nowadays, is by shutting down the option for people to use their names, especially if they have a credit block, which is vital to remember.
Therefore, if you are suspecting that someone can use your personal data for a potential fraud, it is important to create a specific insurance policy that will protect you throughout the process.
Of course, you should be aware that a credit block cannot prevent other means of ID theft. Still, it will help you reduce the damage, especially if you you are unfortunate enough to become a victim of it.
According to the Norwegian Data Protection Authority, when someone does a credit check on you, the next step is for you to receive the relevant information. We are talking about a counterpart letter. You can find everything about it on the Norwegian Data Protection Authority website.
The moment you receive a letter, but you do not recognize the company that conducted similar credit assessment, the next step is checking out with law authority to determine what happened and whether you have become a victim of ID theft.
As you can see from everything mentioned above, ID theft is one of the biggest reasons people decide to implement voluntary credit blocks. Even if your personal info goes astray, someone cannot take loan on your behalf when you block it out.
Lifting a Block
If you wish to lift a block, we recommend you to contact the credit reference agency that placed it in the first place. The process is completely free, which is a perfect option to remember.
For instance, if you wish to take a new mobile subscription, you can raise a credit block. On the other hand, you can do it for any other reasons that requires a thorough credit check. The moment you have everything in order, you can return the block to its place.
Still, it can be problematic to handle the similar process each time you want to make a specific subscription. Therefore, you should think about long-term planning and determine everything you wish to do after lifting a block, which will prevent potential issues from happening.
Generally, people place a block with an idea to feel a better sense of security when they decide to handle losses in case of identity theft. Therefore, blocks can function as insurances that you can handle by yourself, which is vital to remember.
