When it comes to consumer loans and other unsecured loans, there are many options. It is possible to get a consumer loan on the day – but the money will not stand on account the same day.
What is a consumer loan?
A consumer loan is a flexible loan without security, where the banks do not set requirements for what you use the money for, take a mortgage on a home or ask for a deposit. You can apply for the amount you need, choose the repayment period and use the money as you wish.
Since the banks do not set collateral requirements are consumer loans and others loan without security more expensive. This is because banks take an increased risk by lending you money. As a compensation for this risk, you have to pay higher rent.
Although a consumer loan is an animal loan, there are also several benefits to using a consumer loan
- Borrow money for what you need
- Flexible repayment period
- Lower rent compared to credit cards
- The application can be processed on the day
What are consumer loans used for on the day?
Consumer loans is flexible – you use it as you wish. Do you have unpaid bills that are on the way to debt collection, want to renovate your home or need a new TV because the old one went to the floor? These are all options where consumer loans or credit can be options.
Popular uses are:
- Replace damaged white and brown goods
- Renovation of the home
- Purchase of new furniture
- Pay for a vacation trip
- Cover unforeseen expenses
- Refinance other unsecured debt
- Equity for housing
When it comes to the use of consumer loans, there are some areas where it may be wise. There are also areas where it is not recommended. For example, we do not recommend using loans to pay bills. If you do not have the opportunity to pay when due, contact the sender and get a deferral or repayment agreement.
When it comes to the new trend of taking out consumer loans and using them as equity, this is not recommended either. Remember that all loans are taken into account when you apply for a mortgage. If you have NOK 100,000 in consumer loans, this is NOK 100,000 less you can get in a mortgage. The interest rates on this loan are also higher and can be very expensive in the long run.
Consumer loans on the day without a credit check
It is not possible to apply for a loan without a credit check in Norway. It is a requirement that everyone must have a credit check when they apply for a loan or want to start a subscription. You will not get around the credit check no matter how hard you try.
The reason why there is a requirement for a credit check is to avoid lending money to people who cannot repay. If you have a payment remark, low income or high debt, you are considered a risk. Banks do not want to lend money with such a high risk.
Opportunities for you with a bad credit score
Even if you should not go through the credit check for loan on the day without security there are other possibilities. If you have a home, you can apply for a loan with security in the home. This is a loan with a lower rent compared to a consumer loan since the bank receives security. If you have a low income or high debt, this can be an option.
Another option is to apply for debt refinancing with collateral in the home. Then you can collect all your debt in one place, and can have other unsecured debt baked in. With only one loan to pay down, you get reduced costs. Then you can also improve your credit score over time with faster debt repayment.
Loan on the day with payment remark
If you have a payment remark, it will be more difficult to get a loan granted. The only option available on the market is to apply for a loan secured by a home or with a guarantor. The interest rates on these loans are higher, because the bank takes an increased risk when you have a label.
This solution is only recommended if you really need money, such as if the roof of the house needs to be repaired. Or as a solution to pay out the claims that gave the remark. By paying off the borrowed money claims, you can have the remarks deleted and apply for refinancing with a consumer loan on the day for better terms and tenants. Then for you also deleted the mortgage on the home.
Important to keep in mind with consumer loans on the day
Consumer loans on the day without collateral are a fairly expensive loan compared to, among other things, housing and car loans. This is because banks take a risk by lending money without any form of security. Since the loan is of the more expensive kind, you should not apply for a loan unless it is necessary or it provides an increased value.
Consumer loans for refurbishing bathrooms or kitchens are a classic. You may want to use the loan for this because you increase the value of the home. With increased value, you can reduce the loan-to-value ratio and get better terms on the mortgage. It is also possible to apply for refinancing and have the consumer loan baked into the mortgage.
If you are going on holiday, need new appliances or pay something unforeseen, credit may be a better option. With a credit card, you get a rental-free period of up to 60 days, so you can pay back immediately, it will not be more expensive for you.
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Source: The Nordic Page