(Translation for Lån På Dagen Med Betalingsanmerkning: Loan on the day with payment notice)
Residents must have a Norwegian national identity number and proof of address to apply for a consumer loan in the country. A consumer or personal loan is an unsecured product that doesn’t require collateral or an asset for the lender to hold if the loan defaults.
Lenders vary with their criteria but generally approve borrowers with a steady income from a stable employer or individuals receiving AAP or work assessment allowance.
Before applying to a bank, a borrower will send inquiries to various entities to check eligibility criteria. Please visit billigeforbrukslån.no/lån-på-dagen for details on applying for consumer loans in Norway.
A credit review is warranted when borrowing to determine creditworthiness since the bank will use this as a factor to evaluate for assignment of an interest rate and discern the ability to repay the debt.
If the credit profile displays payment notices, these must be satisfied to take a loan in Norway.
The creditor must be contacted with repayment and the entry removed from the credit profile by submitting the repayment confirmation. Let’s look at other potential problems that could hinder loan approval.
What Can Go Wrong With Loan Approval In Norway
When applying for a loan in Norway, residents must have a Norwegian national identity number and proof of residency. Lenders have varied eligibility criteria, but the primary common qualifier is having either a work assessment allowance or a steady income.
As the borrower, you will need to inquire with banks for eligibility guidelines and check credit for anything that could disqualify you. Numerous issues can lead to loan delays or rejection, including payment notices.
These need to be satisfied before a loan will be considered. Let’s look at other potential problems borrowers can face.
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Debt collections
This is essentially a payment notice. When you have debt that has never been repaid, these go to debt collectors. It stays on a credit profile for roughly seven years or until the debt is repaid. If inquiries are made on the debt, the time starts over.
It’s possible to make payments toward the debt, but until it’s repaid, new loans or credit of any kind will be rejected. Norway labels you as a “debtor.” What can you do to make the situation right to obtain the loan you need? The creditor needs to be contacted at once to repay the full balance.
You will then have the entry removed from your credit profile by sending the confirmation of your repayment. Once these steps have been followed, a lender will consider you for a loan. View for guidance on how to avoid debt collection.
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Tax returns for the prior year are not filed
While you have been living and working in Norway for a specific period with taxes meticulously settled, you now need a loan. Still, when inquiring with a loan provider, the assessment reveals that your tax returns must be updated.
The systems in Norway that evaluate creditworthiness for financial institutions are BisNode and Experian. The reports they obtain will have details on tax returns for previous years, along with payment notices currently in process.
Before applying for a loan, you can check these systems to find this information. You’ll know ahead of time that tax returns are delinquent and can correct this issue before applying for a loan.
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You don’t have a registered address
Regardless of how long you might have lived and worked in the country, often, people only take the steps to formally register once it becomes necessary. This detail will be a consideration for a loan provider.
Without a registered address, loans will be rejected. In order to get approval, you must take the steps to register the address in the country.
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You didn’t reveal your entire profile to the loan consultant
While you might have satisfied the payment notices and are repaying other debts to bring your debt-to-income ratio to a satisfactory ratio, you have a few credit cards for emergencies, but these usually have no balance.
When applying for a loan, you only report existing debt instead of revealing all your available credit. It’s essential to disclose all credit, debt, mortgages, auto loans, and account limits on loan applications, or the lending agency will reject the loan.
When the rejection is received, you’ll need to addendum these details with all current information, including the emergency credit cards with their account limits, since these will be considered debt, possibly decreasing creditworthiness.
When not using a credit card in Norway, it’s suggested that it might be better to cancel unused cards with the recommendation to avoid unnecessary credit or loans.
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The borrowing amount is too great
The suggestion is only to borrow what you need, not what you want. Still, if you are given the opportunity to apply for “500,000 NOK,” shouldn’t you, particularly if you have a steady, good income?
Often people will take advantage of what the bank will approve them for and apply for that amount. It can sometimes, though, pose a problem with delays regardless of your income.
That’s if you have a minimal credit history. In some cases, this can lead to the borrowing amount being lowered despite a high income.
Fortunately, that doesn’t happen with all lenders. Usually, those who have been in Norway for a significant time, several years, with a long-standing personal identity number and a high income, will receive the requested amount.
However, most lenders suggest borrowers consider smaller, more manageable loans that can be paid off quickly to build favorable credit standing and earn the lending agency’s confidence instead of large loans that take considerable time to repay.
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You don’t meet the income criteria
The income criteria to obtain a loan in Norway is 220,000 NOK gross annually minimum, or the loan application will be rejected. The only way to change this is to improve your income by obtaining a raise, requesting a promotion, or applying for a second position outside your primary job.
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You forgot to enable your BankID
While everything seems okay with the credit and financial standing, debts have been repaid adequately, and all details are updated with the bureaus, it’s important to ensure that your BankID is in effect. If so, you should have received a security token. If this hasn’t occurred, you won’t be able to sign for a loan.
You can remedy this with the bank by ordering the security token and then contacting the institution to have the BankID enabled. For those who set up a bank account with a passport, you can contact the bank by phone and handle the details relatively easily.
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There is a language barrier
The bank contacted you on the loan with a representative attempting to communicate, but you are unfamiliar with Norwegian except for a few courtesies.
This is a significant problem if the consultant was trying to inform you that the loan was approved or wanted to give you details on things you needed to do to get it approved. You will likely need to go to the institution to sign the agreement and speak with them in person.
In order to resolve the situation, you will likely need intermediaries. Still, in the future, it’s wise to learn phrases if you intend to live in the country full-time for an extended time and interact comfortably.
Final Thought
While there can be mistakes along the road to obtaining a loan, it is possible to be successful if you follow relatively simple guidelines.
These include having a Norwegian national identity number, proof of residency, an income of 220,000 NOK annually or a work assessment allowance, and minimal debt that has been disclosed to the lender.
Further, as a resident of Norway, one who might be there a while, it’s essential to become familiar with the language enough to know when your loan is granted.
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