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There’s a lot that’s changed in the way we bank. All of our statements are online, we can apply for accounts and cards with a push of the button, and we can even make deposits from our phones. While the way we do banking may have changed, there are a few things that haven’t and that’s the fact that banks will not loan money to those with a poor loan or credit history.
Banks hate seeing late payments or missed payments in your loan history. They’re also wary of bankruptcy status, debt settlements, and social security collection. One of the main reasons why is that they never want to give someone money that they won’t be able to get back in the end.
Before a bank or institution will even consider you for a loan, they’ll do a full history on you. They’ll want to see your finances and full credit history before they sign any formal documentation that approves you for a loan. Don’t take it personally. The bank is just trying to protect itself from losses. They’re also there to ensure that someone doesn’t take on more debt than they can handle. It’s a win-win for both parties.
While banks do their due diligence before servicing a loan with a customer, nothing is perfect. There are times when people fall on hard times and can’t pay the monthly balance. Sometimes someone might simply forget that they had a payment due because of how busy their life has become. Whatever the case may be, in Norway, if you stop paying your bills, or miss payments, something called a payment remark is stored in a register with your information.
Getting a loan with a payment remark
As I mentioned above, if you have a payment remark on your record, it’s going to make it difficult to get a loan. Payment remarks are there to ensure that institutions servicing the loans are protected from loss and the people who take out the loan don’t take out more debt than they can handle.
While you may be angry or frustrated because you have a payment remark and need a loan, the system is designed to protect both parties. It would be unfair for you to take on more debt if you’re struggling with the debt you have now. And institutions only stay in business when they make money so giving it away for free isn’t going to do them any favors either.
That being said, it is possible to get a lån med anmerkning or a loan with a note. You just have to know the requirements. Banks need to see that you’re not only meeting certain requirements but there’s a good reason why they should give you the loan. What I’m really trying to say is that institutions are looking for motivation in regards to offering loans to those with payment remarks.
Banks don’t want to see you looking to get a loan to use on something personal like updating your house, buying a new car, or purchasing a vacation home. Banks want to see that you’re actively trying to pay off your debts.
For example, some banks may not mind giving you a loan if you plan on using that to pay off some of your existing loans. Shortening your debt pool shows that you’re actively trying to make things right in your finances and clean up your debt. Likewise, if you plan on using your loan to invest in your career or business that can potentially help you earn more money to pay off your debts, then that’s something a bank might be interested in.
As long as a bank has proper motivation for giving you a loan, they’ll be willing to overlook the payment remark. In addition to this proper motivation, banks need to see that you have stability in your life.
Banks will require that you own your own home and aren’t sleeping off your friend’s couches. They’ll also need to make sure that you have taxable fixed income such as a salary or pension that is at least six figures or higher. This will also motivate your bank to give you that loan you need despite the payment note.
Applying for a debt collection loan
One of the main reasons a bank will give you a loan is if you plan on using it to clean up your debt. Let’s say that you have three different loans that you’re trying to pay off and that caused you to have a payment remark. A bank would consider servicing you a loan if you wanted to use it to pay off these other debts.
Not every bank will lend you money for debt collections. Most banks will avoid this practice altogether. They don’t want to take the chance that they’ll lose money due to a risky payee.
Look for banks that offer special loans or refinancing with payment remarks. These banks have experience with customers who have problems with paying their accounts to the poor economy, job loss, or illness.
The good news is that more and more banks are starting to cater to those who are having trouble paying off their debts. They understand that life can be difficult and unforeseen circumstances can affect everyone’s financial situation. This means you shouldn’t have too much trouble finding a bank that caters to your situation.
The best practice for applying to banks or agents who work for different banks is to apply to as many places as you can. This way you can look at the different options that are available to you so you can be sure that you’re getting the best deal possible. Every bank offers different conditions for their loans so having different options can make sure that you’re choosing ones with the best terms and conditions for your needs.
Once your initial application has been sent, you’ll be soon getting phone calls and emails from different banks who are looking to get more information on you and your situation. As you already probably know, just because you have a payment remark doesn’t mean that you’re a bad person or negligible. Illness, tragedies, and job loss can all be factors that caused you to lapse on your payments.
Institutions want to know about your specific circumstances so they can better assess whether or not they’re the right institution to help you clean up your debt. While this process might take more time than you originally expected, it’s done this way to best identify your risk factor. To a certain extent, these banks are taking a risk on you. They need to know that you’re highly motivated and committed to paying off your loans.
Once you’ve been approved by the bank, they’ll start investigating your assets to make sure that they have enough security. Prepare to have your home seen by appraisers looking to calculate the exact value of your home based on location and comps. They do this to make sure that in the event that you can’t pay off your debts, they have some form of collateral. Once they’ve assessed everything, the bank will start your registration.
Think long and hard about accepting a loan when you have payment remarks.
There’s a right reason and a wrong reason to open up a loan when you have a payment remark. Never take a loan out if you don’t you can handle paying it off. You’ll do yourself a disservice if you do. If you get the help now and don’t use it to your advantage, then you may not be able to get it again in the future.
You should always keep a few things in mind before you accept responsibility for a loan. You should always ask yourself if you can pay off your remarks without taking out another loan and if you have alternative options.
What does this mean? Well, let’s say you lost your job due to a poor economy or illness. Due to this, you couldn’t afford to pay your loans off for a few months and got a payment remark. Sometime later, you return to work and start bringing in some stable income. You might be able to start paying off your debts again without taking out a loan, which makes a lot of sense.
Remember, banks will collect interest on your new loan so if a debt isn’t substantial and you can start paying it off again, it doesn’t make sense to take out another loan. If you do need immediate money, but it’s minimal, it might be a better option to borrow money from a friend or family member before turning to a bank. Always make sure that if you do choose to take out a private loan this way, you have zero doubt about your ability to pay it back.
For more ways to get out of debt, click here.
Is taking out a debt collection loan the only option I have?
While taking out a debt collection loan is a great option and a relatively easy one to get rid of your debt, it’s not for everyone. You can always pay your debt down manually by negotiating with creditors for a payment plan.
Payment plans will allow you to pay down your debt in a way that’s easiest for you. You’ll repay a specific fee every month until you bring your debt down to zero. Payment plans through creditors will often cost less due to lower interest rates and no start-up fees. If you have recent debts, it’s more than likely that your creditor will refuse a payment plan. Taking out a debt collection loan may be a better alternative if that’s the case.