Credit rating to households keeps increasing, and roughly one in four Finns held credit in 2019 (Finance Finland). At the end of 2018, householdsвЂ™ stock of credit rating ended up being projected to amount to EUR 21.7 billion, together with stock has exploded by EUR 3.5 billion within the previous couple of years. Overall, customer credit is the reason 14% associated with the total loan financial obligation of Finnish households. Financial obligation issues due to credit rating are increasing, while high-interest credit rating has been aggressively promoted.
Record development in unsecured credit rating provided by credit organizations
The stock of credit rating issued by credit organizations has increased quickly in the past few years. Specially unsecured credit rating aside from overdrafts and bank card credit is continuing to grow at a record rate. The financial institution of Finland estimates this one for the important aspects when you look at the growth of unsecured credit rating by credit organizations could be the performance that is good of sales in the past few years. When you look at the Bank of Finland’s MFI data, unsecured credit also contains credit rating where, for instance, a car is employed as security. Continue reading “New methods necessary to rein in credit rating”