Deposit guarantee providers assess applicants before the guarantee is issued, and that assessment is normally based on a credit assessment and an identity check. If you are credit assessed, you have the right to be told why, and you receive a copy of the information that was disclosed.

So the answer to what many people are searching for, a deposit guarantee with no credit check at all, is usually that the assessment comes with it. In return it is fast, digital, and based on facts you can see for yourself.

If your application is declined, there are still several routes forward.

In short:

  • Approval is normally based on a credit assessment and an identity check.
  • Whoever orders the credit assessment must have a legitimate need connected to the agreement.
  • You receive a gjenpartsbrev from the credit reference agency, showing who ordered it and what was disclosed.
  • You are entitled to know why you are being assessed and what the assessment will be used for.
  • A payment remark is the most common reason for a decline.
  • NAV, a kausjonist and a deposit account are alternatives if you are declined.

Why does the provider assess you?

A deposit guarantee is a promise to cover the landlord’s valid claims up to an agreed amount. The provider is therefore taking on financial risk on your behalf.

The assessment is about that risk. It says nothing about you as a person, and it is not a verdict on your finances. It answers one question: can the provider issue this guarantee for this tenancy?

It is the same logic that applies when a landlord credit assesses a tenant, seen from the other side of the table.

What does a credit assessment look at?

A credit assessment draws on information held by a credit reference agency. It typically includes:

  • Income and tax assessment data
  • Any payment remarks
  • Any debt collection cases and enforcement proceedings
  • Registered debt
  • Age and registered address

A score is normally derived from this. What it takes to be approved is decided by each provider, and it varies.

A payment remark is the single factor that most often leads to a decline.

What rights do you have when you are credit assessed?

This is worth knowing, because many people are unaware of it.

Datatilsynet is clear that whoever orders a credit assessment must have a legitimate need connected to a specific agreement. A credit assessment cannot be ordered out of curiosity or for private purposes.

You have these rights:

  • You receive a gjenpartsbrev from the credit reference agency, showing who ordered the assessment and what information was disclosed.
  • Whoever orders it must tell you why you are being assessed, what the legal basis is, and what the assessment will be used for.
  • You can request access to the information the agency holds about you.
  • If a piece of information is wrong, you can require it to be corrected.

If you receive a gjenpartsbrev you do not recognise, contact the agency that sent it.

Does a deposit guarantee without a credit check exist?

This is what many people search for, and it deserves an honest answer.

Commercial providers normally assess applicants, because they carry the risk. A guarantee issued with no assessment at all would cost considerably more for everyone else.

What does exist without a commercial credit assessment is the NAV guarantee. It is based on an assessment of your situation and finances carried out by NAV, and it is intended for people entering a tenancy who are unable to raise the deposit themselves.

A kausjonist can also provide the guarantee. In that case it is the guarantor’s finances that are the starting point, not yours.

What if you are declined?

A decline does not end the home search. These four routes stay open:

  1. Apply to NAV for a deposit guarantee, through the application for financial social assistance in your municipality.
  2. Ask whether a kausjonist can provide the guarantee, for example a parent or other close contact, with a written agreement on amount and period.
  3. Propose a deposit account instead, possibly paid across the first months if the landlord agrees.
  4. Check whether the decline rests on incorrect information. If you have settled an old remark, the register can take time to update.

Keep the landlord in the loop. A landlord who has already said yes to you as a tenant is usually willing to look at another form of security.

How to prepare before you apply

  • Check your own credit information first, so you know what it says.
  • Settle any outstanding claims in good time, and ask for confirmation that they are registered as settled.
  • Have the tenancy agreement or the offer ready, with the rent and the deposit amount.
  • Have identification ready for the identity check.
  • Start early, so you have time for an alternative if the application does not go through.

What applies to Keyhole Guarantee?

Keyhole Guarantee requires approval, and approval is based partly on a credit assessment.

Keyhole looks in particular at what you have left after fixed costs, meaning your income set against rent, loans, insurance and other regular costs. Income is verified by Keyhole analysing your bank transactions. If the amount you are left with is too low, Keyhole points to two routes: finding a co-signer, or working on your finances over time.

The landlord must also be a Keyhole partner and invite you to apply. The guarantee is provided through Nordic Guarantee. Keyhole is registered as an insurance agency supervised by the Danish Finanstilsynet, and the deposit guarantee itself is not insurance for the tenant.

If a valid claim arises at move-out, you pay it to the landlord, or agree a payment plan. If you do not pay the claim, Keyhole pays the landlord and the claim follows you.

If your landlord is not a Keyhole partner yet, point them towards us and we will get in touch.

Frequently asked questions

Does a credit assessment leave a trace others can see?

The credit reference agency records that an assessment was made, and you receive a gjenpartsbrev about it. The enquiry itself is not a payment remark.

Can I be declined even with a permanent job?

Yes. The assessment looks at more than income, and a payment remark weighs heavily whatever your employment situation.

How long does a payment remark stay?

It is removed once the claim is settled, and otherwise after four years. If you have settled the claim, ask for confirmation that the register has been updated.

Can I apply again after a decline?

Yes, particularly if something has changed, for example a remark being removed. Ask the provider how long you should wait.

Does NAV credit assess me as well?

NAV carries out an assessment of your situation and finances as part of the application for financial social assistance. That is a different kind of assessment from a commercial credit assessment.

Does the landlord get to see the result of the assessment?

The landlord is told whether the guarantee can be issued. The information behind the assessment is not shared with the landlord.

Next steps

Are you a tenant?

Check your credit information, and ask your landlord whether a deposit guarantee can be used for your tenancy.

Are you a landlord?

Book a free, no-obligation call with Emma to see how you can offer a deposit guarantee to your tenants.

Sources

  • Datatilsynet: For businesses ordering a credit assessment
  • Datatilsynet: Credit information
  • The Credit Information Act (kredittopplysningsloven)
  • Husleietvistutvalget: Deposit and guarantee
  • NAV: Financial social assistance
  • Keyhole Guarantee