Below, you can see the typical reasons for a limited credit amount:
Your disposable income sets the limit
This is the most common reason. If your finances (income minus fixed expenses) do not allow for a higher credit limit, the system will automatically adjust the amount downwards. This ensures that you do not borrow more than your economy can support.
We have trouble categorising your spending
If our system cannot recognise and categorise at least 80% of your transactions, we become uncertain about your financial profile.
What does this mean? This often happens if the transaction texts on your account are unclear, or if your spending pattern is very irregular.
Consequence: Due to this uncertainty, we can offer you a maximum of 2,000 DKK in credit.
Part of your salary is being withheld by the public sector
If we can see that there is a wage garnishment/withholding (typically from the Debt Agency/Gældsstyrelsen) on your payslip, your credit is limited.
Consequence: We can offer a maximum of 3,000 DKK in credit as long as money is being deducted for debt directly from your salary.
Is the debt paid? If the withholding has stopped, we must be able to see a new salary payment without withholding before we can raise the limit. Additionally, there must have been no withholding for the past 40 days.
There are signs of unpaid debt via the Tax authorities
If the data we retrieve from eSkat shows signs of defaulted debt (e.g., interest on debt collected by the government), the system assesses that there is an increased risk.
Consequence: Your credit limit is locked at a maximum of 5,000 DKK.
Are you in doubt? We only receive a flag from the system and cannot see specific details about your debt. If you are unsure what debt is referred to, or believe it is a mistake, you must contact Skat (The Danish Tax Agency) directly for clarification.
When does it disappear? This warning is based on the figures reported by eSkat. Even if you have paid the debt, the limitation will only disappear when eSkat updates its data (typically via the next quarterly report). We cannot manually remove the limitation until the data is updated with the Tax authorities.
You can apply again later - You have the option to have a new credit assessment performed every 30 days. If your income increases, or one of the above limitations (e.g., salary withholding) disappears, your credit limit could potentially be raised.