Hints when Applying for a loan in Norway 

To get access to loan services in Norway, all you have to do is send an application to a lender of choice which may be a bank or any of the available creditors. Most lenders will base their decision on your credit worthiness. All financial institutions report your credit history. So, don’t be surprised if that loan you failed to pay back a few months ago comes back to bite you in the ass. 

More details about loans in Norway can be found at Available loans in Norway.

The credit reports will also include your income so always provide accurate information when applying for a loan. You also have access to this information so you can check before applying to gauge your chances.

Who is Eligible for a Loan in Norway? 

There are certain conditions that you must meet to be considered for a loan in Norway. The requirements will vary from one entity to another. However, there are a few standard requirements that you might encounter with every lender. For instance, a lender will require your permanent personal number. 

It also means that you will need a permanent address in Norway. This is where registration comes in. It is rare to find a lender in Norway who would extend a line of credit to an unregistered individual. Most institutions will also expect you to be 23 years of age or older, to access their services. This makes sense to me, because this is the time that you truly transition to adulthood. Most people start to have financial responsibilities at this age once they are done with school. 

Some lenders will also require a customer to have an annual income of at least NOK 220 000 gross. You should also note that you can get a consumer loan if you receive work assessment allowance (AAP) or sickness benefit (sykepenger). 

Things to do before Applying for a Loan in Norway 

Like I said before, taking a loan is not a decision that should be made lightly. Loans can affect different aspects of your life so it pays to pay close attention. Assuming you have explored other alternatives, there are things you can do to make the process easier. 

Research, Research and do more Research 

It doesn’t matter why you need a loan, researching about loans will ensure you make an informed decision. This is where the articles in this blog will come in. You can start by checking the requirements of each lender to see if you are eligible. 

Afterwards, understand the charges involved and compare them to your income. There is no need to get stuck with a loan that you can’t pay back. You should also check your expenditure or monthly obligations to see if you can afford the loan. 

Yes, even for a loan you still need money. Remember that the lender will check your income and creditworthiness before offering a loan. Never take a loan for granted no matter how small it might be. Loans can be a sure gateway to hell. 

Ask for Assistance from Professionals 

I always remind people of the importance of asking for help. As unnecessary as it might seem, always ask for help when it comes to loans. Remember there are many lenders in the market so you might have many offers. 

However, it can be very time consuming to go through every offer. So, you could even ask for the services of a loan broker to lessen your work. The broker will even fill in the application and submit it on your behalf. However, participate in the process and don’t sign a contract that you don’t understand. The best thing about loan brokers is that most of them offer free services. 

Involve your Family in the Decision to take a loan in Norway 

Family plays a central role in Norway. It is one of the few countries I know of where you can be allowed to leave work to pick up your children from school. So, it’s not such a stretch to involve your family in making decisions on loans. Most lenders will allow you to have a co-applicant so it only makes sense for it to be family.  

They could offer you some ideas of the best lenders in the country and where you can find the best interest rates. Some banks will even offer you favourable terms with a referral from another customer so be on the lookout. Family can be your parents, spouse, registered co-habitant and, in some cases, friends.  

Be thorough in every bit of signing up for a loan in Norway

A loan application is not something to rush over. So, it’s important to take your time and do it right. It doesn’t matter how fast you need the money. Just pay close attention and do it right. Besides, a lender will only approve a loan if the application has been filled out correctly. Go through the application to ensure that you provided accurate information. 

Similarly, ensure that all your financial affairs are in order, especially your income statements. This gives you a better chance at approval. Most importantly though, only borrow what you need and can pay back. You should never splurge on loans because it can lead to sinking into more debt. 

Instances where your Loan application in Norway could be rejected 

There are cases where you could have a permanent job in Norway, regular income and substantial savings and still have your application declined. This can be frustrating especially if you were really counting on this loan. Our articles will give you details on the best ways to avoid this. However, let’s look at an overview of what could have gone wrong.  

You failed to file your Tax Return for the previous Year 

Failing to file your tax returns each year could force a lender to decline your request. Thus, you should ensure that your tax reports on BisNode are up to date before submitting an application. Remember that they come in handy when it comes to evaluating your creditworthiness for any financial entity. The reports will entail details on your income for previous years or current debt collection processes. Always take a minute or two to check your creditworthiness in the system before applying for a loan.

You did not provide a registered address

A lender will only give you a loan if you have a registered address in Norway. Without one then you can expect your loan to be declined. This is true even if you are a registered resident of Norway. However, this could also be caused by your information not being updated in the BisNode and Experian systems. It also happens to those who change their national identity number. So, always check your profile status on the systems before applying for a loan in Norway.  

You might have other Debts 

Remember how I mentioned that no loan is too small to ignore? Yes. There are instances where you might forget to mention a loan. For instance, where you have a credit card that you rarely use. You might forget to mention it in your application. Most lenders will interpret this as hiding other loans. 

This also includes other loans such as car loans or mortgages. It will make it impossible for a lender to extend credit. So, always ensure that you include information on your current debts, including unused credit cards in your loan application. Most lenders consider the credit limit on your credit card a debt. So, it might lower your creditworthiness, therefore it is best to cancel any unused credit cards.

The amount you applied for is too high 

Sometimes borrowers can overestimate the value of their income when it comes to loans. So, you might decide to take advantage of the limit and apply for a high loan amount. This is a mistake. The problem here could be your credit history. Most lenders will not offer you a high loan amount despite your high income with a bad credit history. So, take time and build your credit history in the country before applying for a loan. Or you can try applying for a lower limit. 

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An avid storyteller and passionate writer with a penchant for letting people know that which they don't know while at the same time telling people more about what they may already have known. At the end, you stay informed, be curious, and get cosy.