Hva Er Forbrukslån – Thing to Know before Applying

Borrowing money has become a common thing today. Whenever you don’t have enough cash to buy something or need financial help to achieve a goal, loans are there to solve the problem. These financial tools have become so widespread that a whole sector dealing with them has been developed.

Here’s the list of valid reasons to borrow money from a bank:


In short, you take the money that’s not yours but is given to you by a bank or another lender. You get it as a lump sum and can use it for whatever you want. Basically, you can ask for as much as you want, and you might be approved, provided the lender assesses you’re capable of affording and repaying the debt without any problems.

After receiving the money, you must pay back that amount within the agreed period and according to the lending terms. These terms may differ depending on the amount you borrow, reasons why yo need money, and your creditworthiness. Lenders assess how risky you are, that is, your ability to repay this debt. Based on that, they set more or less strict lending conditions.

In principle, all loans can be marked as consumer loans. Simply, these financial arrangements are given to you, a consumer, for a specific purpose. And based on that purpose, these deals can be further classified into certain types.

Loan Types

People need money for various reasons. That’s how lenders came up with specialized financial products that can be customized to the consumers’ needs. So, you can apply for these if you plan to, for example, buy a house, get a car, or finance schooling. 

Apart from these products, lenders also offer credit cards and personal loans, the most common short-term credit lines you can use for daily expenses. We should also mention refinancing and home equity loans, which can be of great help when you want to replace an existing loan with another under more favorable conditions.

In principle, the general division of consumer loans is into secured and unsecured arrangements. Both have their good and bad sides, and you should gather as much information before applying. Also, it’s good to know exactly why you need money. And finally, you should also evaluate how these financial arrangements will affect your finances and credit score.

Secured vs. Unsecured Loans

The matter is simple: secured loans require certain guarantees that you will return the money, while that’s not the case with unsecured deals. Simply put, the former needs collateral, while the latter does not. Which of these two arrangements you decide on depends not only on you but also on the lender’s requirements.

With secured loans, a lender grants you more money and more favorable terms under which they lend it to you. The collateral you have pledged is something whose value exceeds the borrowed amount and, as said, serves as a guarantee that you’ll pay your debts on time. If you fail to do so, the lender has the right to repossess that collateral and use it to settle its losses.

Because of this condition, secured loans have a high approval rate. Mortgages and car financing are typical examples of these financial arrangements. Real estate and vehicles are actually things you buy with the money you borrowed, but they’re not officially yours until you pay that money back in full. So, they can be considered collateral.

If you wonder hva er lån uten sikkerhet, you must know these arrangements are less risky for borrowers but pose a greater risk for lenders. Since they don’t require a guarantee, the borrower has nothing to lose, but the lender has nothing to cover potential losses. That’s why they compensate for this with strict lending conditions and high interest.

These deals are mainly intended for those with a good credit score. You’ll likely get this loan if you have no recent defaults and generally have a solid credit history. However, lenders can approve unsecured consumer loans to applicants who don’t have a stellar credit history. In return, they’ll pay a higher interest rate.

Consumer Loan Costs

As mentioned, there’s no free cash, especially when you take it from banks and traditional lenders. Borrowing money will cost you, so it’s good to know all these expenses in advance to properly assess whether this venture is worth it or not.


The first and primary cost related to consumer loans is interest. It’s a percentage of the borrowed amount that lenders charge as compensation for their services. And that percentage will depend on many factors, the main ones being the borrower’s credit score and the loan type.

Interest can be fixed (the installment doesn’t change during the repayment period) or variable (the installment can vary depending on market fluctuations), each with its good and bad sides. Fixed loans are initially more expensive, but more desirable because interest rates on a global level generally rise, especially in the case of unfavorable geopolitical situations.

Basically, the shorter the repayment period, the higher the interest. Thus, the most expensive consumer loans are personal ones and credit cards, with rates up to 36%, depending on your credit score. On the other hand, long-term arrangements carry lower interest. For instance, mortgages can be taken with the lowest APR. Car financing products have rates up to 6%, and so do education loans.


Interest is the biggest, but certainly not the only cost related to loans. There are also different fees that lenders can charge, depending on the loan type, and each of them can adhere to different rules. Some expenses are mandatory, while others are not; some you can negotiate, and some you can’t – all depending on your credit score.

For example, lenders will charge an origination fee for loan approval. But some will additionally charge for processing your application through application fees. These can be just a few tens of dollars, but still, pay attention before signing anything. 

All loan costs should be completely transparent, and you must understand them all. For example, the fact that every lender advertises a loan with no closing costs doesn’t always mean that debt settlement is free of charge. On the contrary, it may happen that lenders roll this fee in the total amount, which increases the principal and overall interest costs. If so, they must inform you about that, so never skip the fine print.

All in all, whenever you can, try to pay as few fees as possible. It costs you nothing to try negotiating lower costs, and for that to be possible, you must have a good credit score and prove yourself as a trustworthy borrower. In the worst case, the lender will say no, and nothing will change.

How to Apply

Filling out an application is as simple as making a few mouse clicks, considering that most lenders operate online. Also, they usually ask for basic information and documents that can be submitted digitally, so the entire process is hassle-free. However, don’t be fooled by this ease because there’s a lot you need to know before applying.

Besides interest and fees, you should also inquire about the repayment term, which can be a deciding factor in whether to borrow money. You must opt for a period that suits your goals and possibilities. For example, if you want to unburden the monthly budget, you’ll opt for longer terms and lower installments.

But in general, these deals aren’t cheap. Simply, the longer the repayment period, the more interest you pay. Thus, if you strive to get rid of debt asap, decide on shorter tenures, even if the interest rates are higher.

Eligibility Requirements

After finding a good deal, you should check the eligibility requirements. In principle, any adult with a steady income and good credit history can apply. But, depending on the lender and loan type, there may be some additional requirements.

For example, some lenders may require a minimum monthly income for applicants. Others won’t consider your application if your credit score is below 750. If you meet these, you can ask for a quote and proceed with the application.

Consumer loans are a handy financial tool that can be of great help. But if you default on them, they can be your worst enemy. So never borrow money unless you can pay it back within the agreed terms. Only when you’re responsible toward your obligations can you enjoy the benefits of consumer loans.

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