When you should borrow money it is not a good idea to take advantage of the first best loan offer you get. Instead, it is better to take your time and compare different loans to make sure that you will really get a loan with the best possible terms. In this article, we will take a look at how to compare loans in Norway.
–
–
Get help from a loan broker
–
One of the absolute best ways to compare loans when living in Norway is to use a loan intermediary. When you apply for a loan via a loan intermediary, this in turn automatically applies for a loan from several different players for you. Then the loan offers that you have received are listed, and you can choose the one that has the very best terms.
–
–
By applying for a loan through a loan intermediary, you can therefore apply for a loan from several different lenders, at the same time as you only need to make a single loan application. It therefore gives you the greatest possible chance to succeed in finding the best possible loan while saving you an enormous amount of time.
–
–
Another advantage of applying for a loan through a loan intermediary is the fact that you do not need to provide several credit reports in your name, but one is enough. This is an advantage because credit information can impair your credit score, and if too much credit information is done on you, it can seriously affect your credit score. However, this is not something that you need to worry about by making a loan application with a loan intermediary.
–
–
What to consider when comparing loans?
–
One of the things you should keep in mind when comparing loans is whether it is a loan with or without collateral. If you choose to invest in a secured loan, you will need to leave one of your assets secured by the lender. The lender can then take this away from you if it is the case that you are unable to repay your loan as you have agreed. In fact, in many cases you use the same thing that you borrow money for as security. If you then borrow money, for example, to be able to buy a car, you will then leave the same car as security. Then the lender can take the car from you if it is the case that you are unable to pay back according to your agreement.
–
–
But why should you then take out a loan with security if it can result in you being able to get rid of one of your assets, you may be wondering? The answer to this question is that the lender takes a smaller risk when they give you a loan with collateral than is the case when they give you a without. But then why is this something positive for you as a borrower? This is because the fact that the bank takes a smaller financial risk means that they can compensate you for this in different ways. Among other things, they can offer you a lower interest rate when it comes to a secured loan. In addition, they can in many cases offer loans in larger amounts than they can do when it comes to unsecured loans.
–
–
When it comes to unsecured loans, these are loans that you do not need to pledge any of your assets to be able to get. This is also the advantage of these loans, meaning that you do not have to risk losing any of your assets if you have problems repaying the loan. The downside of these loans is that the lender takes a greater risk by giving you one. This is therefore something that you can compensate for by getting a higher interest rate at the same time as in some cases you can not apply for a loan in the same amount. If you have assets that you can provide as security, a secured loan may therefore be preferable.
–
–
Another thing that is very important to keep in mind when comparing loans is the interest rate. The lower the interest rate you get on your loan, the cheaper it will be for you to borrow money. However, do not make the mistake of focusing solely on the nominal interest rate. Unfortunately, this is a mistake that many borrowers make, and it is a mistake to do so because the nominal interest rate does not include all the costs that come with a loan. Instead, it is the effective interest rate that does. The effective interest rate includes both the nominal interest rate and other fees that may be added. By focusing on the effective interest rate, you will therefore find out exactly how much it will cost you to borrow money. Here it is simply a matter of choosing a loan that has as low an effective interest rate as possible.
–
–
Another thing that can play an important role is the time you have to repay your loan. First and foremost, it’s about choosing a payback period that results in a monthly cost that you will be able to afford. Is it then a good idea to choose as long a repayment period as possible because this gives you the lowest possible monthly cost? The answer to that question is that, unfortunately, it is not. The reason for this is that the longer the repayment period you choose, the higher the interest rate. It is therefore best to choose a repayment period that gives you a monthly cost that you will be able to afford, this without for that matter being longer than necessary as it gives you a higher interest rate. You simply have to do your best to find a suitable balance between the repayment period and the monthly cost.
–
–
Nowadays, as a borrower, you also have the option of applying for a so-called quick loan. These are loans where you can quickly get an answer to your loan application. If your loan application is approved, it is also quick to get the money paid out. You can also apply for a quick loan in many cases. The disadvantage of these loans, however, is the fact that they have high interest rates and in most cases even a very short repayment period.
–
–
–
