Consumer loans in Norway might be a little different than those in the United States. There are things that you could be doing that would cause the loan to be denied. You should know about these things before you try to apply.
You do not want to make a simple mistake that could have you get denied. You want to make sure that you are doing everything that is required of you so that you get the loan. It helps if you have more than a basic knowledge of the Norwegian language.
There are many things that can come up if you are living in Norway that require you to have more money. If you want to låne penger or borrow money, you should know all the information that you need to know before you do so. It helps to research a little to find this information.
This article will help you to find some of the information. It will give you some information about why you might be denied a loan in Norway. Again, you could research some more to get the information that you need.
Reasons You Could Be Denied
1. Tax Returns
If you did not file a tax return in the previous year, you might be denied a loan. If you have not done this, the lenders will not have the information that they need to have to make sure that you are creditworthy. The major reporting agencies will not have the information that they need to pass on to the lender.
You can fix this by talking to the reporting agencies to see what the problem is. If you find out that it is your tax returns, you can file them late. This would help you to get a loan in the future.
2. Registered Address
You need to register your address in Norway before you can get a loan. If you have not registered, you will not be approved for any loan. Even if you have lived in the country for many years, if you have not registered the address, you will not be able to get a loan.
In Norway, you are supposed to register your address within eight days of moving there. You are supposed to register it with the National Population Registry. This is something that must be done every time that you move.
3. No Address Information
Once you file your registration, it might take a little while to show up in the system. Before you apply for a loan, you should check with Experian or BisNode to see if it has been updated. If it has not been updated, you should talk to someone to see how long it will take.
You can contact BisNode to change the information, as well. They should be able to do it fairly quickly. Then you can apply for the loan without any problems.
4. Debt Collection
If you have any debts that are still due, you probably will not get an advance. This will give you the status of debtor and the lender cannot approve your advance. You might only have one small debt that you forgot about, and you will not get your advance.
To fix this you need to contact the creditors and pay off all your debts. This may be difficult for you, but you could potentially have your creditors set up payments for you. This would make it easier to pay them all off.
5. Other Debts
When you apply for an advance in Norway, you need to let them know about all the debts that you have. This includes the credit cards that you rarely use and those other loans that you almost have paid off. Lenders need to know about all of them.
You need to make sure that you let the lender know about all your debts or you will be denied for your advance. If you fail to mention even one of your debts, it could look bad for you. Just mention everything and you should be okay.
6. Large Number of Debts
If you have a large number of debts – even if you are paying them faithfully – could lead you to be denied. Every debt that you have could be counted against you when you are applying for advances. All this information is collected by the lenders.
The best way to avoid being denied by a lender is to not take out so many advances at once. Credit cards, loans, and other debts need to be paid in full before you take out a new advance. Avoid having too many debts at once.
7. Asking for Too Much
You might be asking for too much money. Even if the lender is willing to lend up to 500,000 NOK that does not mean that you can ask for that entire amount. You probably will not approve if you ask for the entire amount unless you have no other debts and you have an outstanding credit report.
The best way to take care of this issue is to not ask for the limit. Another way is to have an excellent credit history. This will help you to get the loan that you want.
8. Income Too Low
In Norway, you need to make at least 220,000 NOK each year before you can be considered for a loan. If you do not make this much, you will not be approved. There is not much that you can do to improve your chances.
The only thing that you could do is to get a higher-paying job. This might be difficult to do, but it might be better for your finances, as well. Your income must be documented, as well – no getting paid under the table.
9. Limited Knowledge of Norwegian Language
If you know only the basics in the Norwegian language such as asking where the restrooms are or ordering a taxi, it might be difficult for you to discuss a loan with the lender. You need more than basic knowledge to talk about legal things which include loans. This will help you to understand what they are saying to you. Even if they approve you, you might not understand and leave the lender empty-handed.
The best way to overcome this is to learn the language better. This will help you in other ways, as well. You can communicate better with the locals if you learn their language.
10. No Bank ID
You will need to have a BankID to obtain a loan in Norway. Learn more about that here. If you do not have one of these, you will be denied. You cannot even sign the loan agreement without this.
You will need a security token and then you will need to enable BankID once you have it. Without this, you will not be able to secure the loan. If you used your passport to get your bank account, you should not have too much trouble getting this done.
There are many things that you could do to be denied a loan in Norway. They have ruled that other countries might not have. You will need to make sure that all your previous debts are paid in full and that you do not have too many debts out all at once. You also need to make sure that you have all the necessary proper documentation.