Norway is very high up on the list of the world’s most expensive countries. By expensive, we mean that the cost of living in this European nation is very high.
With a living cost index of 100.90 and a rent index of 34.68, only countries like Switzerland and Bermuda happen to be more expensive. Since this has to do with finances, some people in Norway are in serious need of consumer loans for various reasons. However, applicants need to know certain things before embarking on the loan application process.
This is important to ensure that the application will go through successfully and that no complications will arise when it is time to pay back. This is undoubtedly a very important subject for those that need consumer loans in Norway. So, such people would do well to continue reading.
Be Realistic as a Prospective Borrower
Increasing number of people are finding it difficult to pay back their loans in Norway. We understand that there are several reasons for this and some of them are understandable.
For example, the cost of living is expensive and it keeps rising. Food and gas prices are examples. Be that as it may, the bitter truth for some is that their debt problem is because they are not realistic.
At the point of applying, many of these people were more concerned about getting the loan and less concerned about the cost of repayment. As a result, they got more than they should. In other words, these borrowers did not borrow realistically.
You should not fall into that trap. This is because of the several implications of doing so. For one, those that took out secured loans can end up losing their collateral. And mind you, taking out a refinance loan to service the existing debt is not as easy as many sources make it out to be. Some people even have their applications rejected.
Even those that took out unsecured loans are not free from complications caused by such debts. The overlapping massive interest rate and other charges will cause debtors to end up in a financial mess.
In other words, you need to borrow realistically. For some, this means that borrowing should not even be an option in the first place. Just be realistic as a lot depends on this.
Do Not Be Caught off Guard
For various reasons, there are lots of creditors that offer credit facilities to those in need. However, they differ in various ways and that includes their charges. By charges, we are talking about the interest rate, administrative fees, and other charges.
This is why you should not feel compelled to examine only one lending service. People who only consider the services of one creditor mostly end up with the wrong one. This is because they did not do their due homework of studying what the competition can offer them.
For the most part, such people are those in a hurry to get a loan. Some of such people are bent on getting forbrukslån på dagen (consumer loans on the day) because of how urgent they need funds.
They are so pressed that they sign the papers: subjecting themselves to ridiculous terms. These terms and conditions end up becoming a nightmare for them and at that stage, there is little or nothing they can do.
To ensure that this is not the case, do not be in a hurry to take out a loan. This means that you need to plan ahead of time. Do not allow your need for funds to catch you off guard.
And still on the subject of examining many lenders, you should reach out to a broker. This would be easier than trying to research all the available lenders on your own. A broker will also offer additional services that would benefit you. So, it makes a lot of sense to use the services of a loan broker for this reason.
Collaboration Increases Your Chances of Securing the Loan
We did mention that many lenders offer lines of credit to borrowers. However, this does not mean that every application for a loan will be granted.
For one, there are also many people open and willing to take out loans from these creditors. In addition to this, the creditors need to be certain that they will not have problems getting back their funds. This is especially when the loan is unsecured.
The whole point being made here is that borrowers are not 100 percent guaranteed that their loan will be granted. However, there are ways by which you can increase your chances of securing the loan. One of such is collaboration.
This simply means taking out the loan with someone. The chances of getting the loan are higher with collaboration because profiles are merged and this puts such people at an advantage. And for the record, it is possible to do this with one’s spouse.
And just as a note of warning, you need to be careful when collaborating. If you are invited to collaborate with someone, make sure the person is transparent and can pay when the time is due. This is so that you do not have to repay a loan you did not use. Sadly but true, some people have incurred debts this way.
General Considerations for Taking out a Loan in Norway
There are some general requirements before loans are granted in Norway. Some of the requirements include the following:
The Borrower’s Age
Legally speaking, people under 18 years are considered minors in Norway. Considering that minors are not allowed to take out loans in the country, people under this age will not have their applications granted.
However, it should be known that some lenders have even raised the benchmark in terms of age limit. This is why some lenders would not consider prospective borrowers under the age of 25. Some of these lenders feel justified with this decision because people under the age of 25 are culturally considered young people in most parts of the country.
Residential Status
Foreigners can also take out consumer loans in Norway. However, they need to be duly registered. In addition to this, they need to have stayed in the country for a certain period. As of late, the required time frame is 3 years at least.
However, people that have not stayed this long but need a loan still have a lifeline. This would involve collaborating with someone that meets the requirements as explained above. This will increase their chances of getting their loan approved.
Documented Income Stream
Lenders need to run checks to be certain that borrowers can pay their debt at the right time. This is why details about your income are requested. Other than this, other information like your driver’s license, passport, Bank ID, can be requested as well.
Wrap Up
To be forewarned is to be forearmed. Many people are in financial difficulties today because they lacked basic financial knowledge before taking out loans.
In light of this, we have touched on some things you should not do as a borrower. These things are important and so you should take them seriously from now on.