We’ve all tried to need a loan. And even when you have thought the first thought, you almost get tired – because you already imagine the endless piles of papers that must be back and forth over the bank adviser’s desk. In this article you will learn why it is often difficult to borrow money – and how to make it a little easier for yourself.
How difficult is it to get a loan?
Traditionally, it is often rather difficult to get a loan. At least if you go for a bank loan. Here, it depends a little on what type of loan is involved. The most complicated loan to get is of course a mortgage loan. Here you should always always have a real estate agent and a lawyer on the sidelines, several reports, energy labels and more. And only then can you begin work on having to go through the bank.
For example, a car loan is considerably more reliable, but it also requires a lot of documentation and paperwork. Here you will usually also have a pricing of the car, a budget, and preferably an estimate of what it costs to get the car insured . Fortunately, you can basically get the most out of the dealer – and often these will also be able to make a loan for you.
Of course we last have the good old consumer loans. Although a consumer loan is usually always in some considerably lower amounts than, for example, home loans and car loans, it does not in any way mean that it is necessarily simpler to take up a consumer loan. And now you should hear why:
Typically, banks or loan companies know that there is a value in the things they borrow money for. If you lend to a home, you do not in principle own the property before the bank and the credit union are paid. Therefore, they are always fairly sure of being able to get the money – even if, unexpectedly, you do not pay the repayments, as they here have the opportunity to put the house on a so-called forced sale.
By a car it is a bit the same story – here the bank also has the opportunity to involve the car. However, the banks certainly do not see this option as it is difficult and expensive to have to sell a car, versus a house where the banks are still involved in the trade. However, it is possible because your loan is actually tied up in a physical item.
Typically, consumer loans are not tied up on any specific product, and therefore the loan provider does not have the opportunity to take the goods into pledge. And often a consumer loan is not only used on one thing, but is split up into several different products. There are also some of the things you often buy with a consumer loan that cannot be sold at all. For example, it is really difficult to sell a trip that has already been held – although the memories can be worth gold.
The fact that there is no physical thing of value tied up on the loan means that the banks and the loan companies take a risk. Therefore, they will typically ask you to provide some form of security. It may be that you allow the bank to take a mortgage on your house or your car, and in this way the bank has a guarantee. But if you do not own any value – it can be, for example, if you live for rent, and your car is not of significant value – or if you do not have a car at all, then you have nothing to guarantee. Therefore, the bank typically requires you to show a lot of pay slips, a detailed and advanced budget (which must not be too optimistic at last), to know if you are a member of a union, how you are insured, etc. All this paperwork you have to manage, and you also have to sit down to a bank meeting with sweaty palms and the hand in the hat – and of course do so within the bank’s opening hours.
How Easy Can It Be Done?
Fortunately, it is not all places that make it difficult to borrow money. In fact, it is really many places very easy. Do you have a computer? Loan money quickly and easily online!
Because here in Denmark we basically have a healthy, good and strong economy, so we have aroused the interest of many providers. Therefore, there are also many large international players who have signed up for the course and would like to offer Danes private consumer loans – because they can see that we are able to repay the money. And you can find many of these loans, with a quick and easy search on the web. The big advantage here is that you get rid of much of the paperwork. As a starting point, there is no paper whatsoever to be found. Since the applications are made using your CPR number, the loan company itself is able to extract the data they need from SKAT, and can therefore quickly and easily assess whether you are entitled to get a loan from them.
There are some places where you need to upload payslips and possibly an annual statement – but this is rare. And most often it is only by very large consumer loans – and even if you need such one, it is easy to download both parts directly from the computer. And best of all, you don’t have to worry about when the company closes.
The vast majority of the “machine” behind is running automatically. Therefore, at virtually any time of the day, you can quickly get an answer as to whether you are eligible for a given loan. And if you have any questions, then you can get help in many places both by phone and by chat – but of course only during opening hours.
In fact, this means that you do not have to run in the bank during your working hours, you do not have to sit with wet palms – and you get an answer right away. It won’t be much easier.