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What is the difference between an installment loan and a mortgage loan?

You have undoubtedly heard of an installment loan and a mortgage loan. But what exactly is the difference between the two credit products? And what fits best with your financial situation and needs? Read it all in this blog.

What is the main difference?

What is the main difference?

There is really only one real difference between both forms of credit. You do not have to provide any collateral for the loan amount for an installment loan.

Conversely, there is only a mortgage loan when real estate serves as collateral. Real estate refers only to real estate. In other words: stationary goods such as a home or land.

Why an installment loan?

For an installment loan you do not have to provide collateral, because you receive the loan based on your personal creditworthiness . You have the freedom to spend the loan amount for any purpose without having to justify yourself.

Please note that this ‘freedom’ is often accompanied by a higher interest rate than a mortgage loan. There are also restrictions on the amount of the loan and the length of the term.

Why a mortgage loan?

Why a mortgage loan?

Because you give a home as collateral when you take out a mortgage loan, your lender has the certainty that he will get back the loan amount. The risk is therefore lower for your financial institution.

And that has some nice advantages. This way you can borrow a large amount at a lower interest rate and with a longer duration. Mortgage loans generally have the lowest interest rate of all credit products.

However, you must also bear in mind that there are costs associated with a mortgage loan. Just think of the costs for the notary, the mortgage custodian and the preparation of the deed.

There is also always the possibility that you will lose your home or land if you are no longer able to cough up the monthly installments. After all, the lender will in that case claim the collateral.

Free and non-binding advice

Are you interested in an installment loan or a mortgage loan? Feel free to drop in. In a confidential conversation from person to person we together look at your financial situation, your needs and the possibilities that present themselves.

Moreover, you can always go to one of our offices whenever it suits you. We have offices so always around the corner. Make an appointment now for free and without obligation or just drop by.

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Restart Loan: Refinance with Debt Collection and Payment Note

With a restart loan, you can refinance and collect other loans, even if you have a debt collection or payment note from before. The amount you can borrow on such a loan depends on your finances and the value of your home.

It is often those who have a note of payment or have come into debt collection who feel that they need a loan most. For those who have a pending payment or debt collection case, refinancing through a restructuring loan can be a good solution to gain control of the financial situation and avoid forced sale of the home.

What is a Restart Loan?

Restart Loan

Unfortunately, you can sometimes end up in a financial predicament, maybe you have a number of other smaller loans that have to be repaid month after month.

Or you have gone through a temporary personal crisis and ended up with the payments, with debt collection and payment note as a result.

A restructuring loan is an opportunity to refinance loans and debts, including the mortgage itself, even if you have a payment note or debt collection. In order to apply for a restart loan, you must have security in your home or property.

Refinancing of debts with payment note

A restructuring loan collects all old debt into a new loan with collateral in housing and lower interest rates than other unsecured debt. In other words, a restructuring loan is a loan that gives the borrower an opportunity to start afresh financially with lower interest costs.

How does a restart loan work?

money loan

Despite several payment notes or debt collection history, you can start over with a restart loan. The loan collects all old debt so that the financial situation can be a little better.

The loan works by submitting, among other things, a creditor list to the bank you are applying for a restructuring loan with and the bank will, if the loan is approved, pay out what you owe your creditors.

A restart loan works in many ways like any other loan. The borrower submits an application and the bank will then check the ability to pay and the risk to the applicant.

What is the interest rate on a restart loan?

credit loan

A restructuring loan for people with payment notes and ongoing debt collection cases will have a higher interest rate than a regular mortgage. This is because of the risk the bank takes on, but such a loan will often be a good opportunity for a fresh start financially.

What the interest rate will be for you with a mortgage refinancing loan, or a home loan. Will be able to depend on many factors and be set individually.

Debt refinancing when you have a payment note

Normally, you will have little or no opportunity to take out a new loan if you have a payment note from before. With the restructuring loan to Lite Lender it will be possible to refinance other debt into one new loan with collateral in housing.

A restart loan collects old debt into a new mortgage, even if you have old debt collection and a payment note.

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To furnish the home with a loan

It can often be difficult to know how to pay for larger purchases and furniture often falls into this category. Whether you want to move into your first home or just want to furnish home, it can be difficult to find large sums that can be spent on a bed or sofa.

What can you do if you do not have enough disposable income or saved money to cover the cost of furnishing a home? One way might be to take out a loan to buy furniture, but there are both pros and cons to doing so. Here we go through them.

What is a furniture loan?

Furniture loans are mostly interest-free credits from the furniture business that you repay according to the agreed deadline. How long the interest-free period extends and what the repayments will be depends on what the furniture seller offers, how much you spend, whether you pay a down payment or not and how long you choose to take out the loan for.

Furniture companies often offer loans through a finance company that allows you to borrow money without interest. As it is a form of credit, they will usually always take a credit report. Therefore, there are no guarantees that you will be granted a loan, but of course you have better chances if you have a good credit rating.

Is that a good idea?

home loans

You should always think a little extra before taking on more debt. While it may be tempting to pay off a product without interest, there are some drawbacks to taking a loan from a furniture store. Here are some drawbacks that you should take into consideration:

  • If you do not pay the full amount at the time of purchase, it is often tempting to go over budget.
  • Having several different loans and credits can affect your credit rating.
  • Your disposable income is negatively affected, as you have to make an extra payment each month.
  • Missing a refund may adversely affect your credit rating.

A furniture loan or a credit card?

The advantage of using a credit card that does not charge interest on purchases compared to a furniture loan is that you usually have more flexibility in your repayments. If you take out a furniture loan, you usually have to keep a fixed schedule for repayments over a period of time. If you pay by credit card, you can decide for yourself how much you want to pay and when you want to pay. If you choose to use a credit card, you must remember to pay off the entire debt before the end of the interest-free period, otherwise all remaining debt must be paid off with the card’s standard interest rate.

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Blacklisted loan: what can you do about it?

Is it possible to take out a loan if you are blacklisted by the National Bank? How exactly do you end up on that list? And more importantly: how exactly do you get rid of it? You can read it all in this blog.

How do I get blacklisted?

When you put your signature under a loan, you must comply with the strict repayment obligations in the contract. If you do not do so and you do not repay your debt or you repay it too late, the lender is required to report this to the Central Bank for Credits to Individuals of the National Bank.

So if you have never repaid a loan or have repaid it too late, it is possible that you have ended up on the blacklist of the National Bank. That is not good news, because lenders are required to consult this list with every new credit application.

How do I know if I am blacklisted?

Unfortunately, many people only come to know that they are blacklisted after their loan application has been denied. To check whether your name is on the black list, you can surf to the website of the National Bank. There you will see an overview of all data registered in your name.

How do I get back from the blacklist?

That is simple: you only have to pay off your debts. Once your debt has been settled, the lender is required to report this to the Central Bank for Credits to Private Individuals within eight days. The default then remains registered for another year, after which it expires and your name is ‘deleted’ from the list.

Can I borrow money when I am blacklisted?

As mentioned earlier, a bank or other lender is required to consult the National Bank’s blacklist with every credit application. If your name is on that list, you can not request a new loan. You must first pay off your debts.

Once that is done, your name will remain on the list for another 12 months. In the meantime, it’s possible that lenders will still refuse your credit application, but some banks are willing to lend you money.

Find a car loan together

Because we work as a broker with the most current banks, we have an overview of all loans that best suit your specific situation. Have all your debts been paid off and are you still blacklisted? Then we look at your options together in a conversation from person to person.

You can always go to one of our offices whenever it suits you. We have offices so always around the corner. Make an appointment now for free and without obligation or just drop by.

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7 Excuses that keep you in debt longer

You may think that it is your income or the size of your debt that makes you sit in this dark financial hole. But more likely, they are the excuses you tell yourself not to take.

If you recognize any of the excuses below, it’s time to let go … On the excuses.
Begin the process of getting rid of debt for good and becoming debt free.

Debt in this sense is all loans and credit outside the mortgage.
If you follow what Daniel Rutsey recommends, you should pay off the mortgage for 10-15 years.

“I’m not making enough money”

Ah yes, the oldest excuse in the book – and my personal favorite.

I had this excuse myself so when I started to get annoyed enough about the debt I started working as much overtime as I could to increase my income. Not that it helped anything noteworthy.
More money in = more money in.

Not until I started with a personal budget – and followed it, did things actually start to happen. I feel today that I have much better finances, even though I no longer get as much overtime as before, and even though I pay down as much as I can on the debt each month.

Here you can read about how to start creating a personal budget.

If your income is actually the problem then you need to increase it. The good news is that life is not stagnant. It’s an impossibility that in 5 years to come your life will be just like now.

To increase your income, you can get a side job or part-time job while focusing on a career for yourself.

“When I increase in Salary, I take hold”

What if it takes a long time for you to increase your salary – or never do it? It is wise to start the process right away instead of waiting. The longer you wait, the longer it takes and the easier it is to slide everything under the rug.

“I prioritize saving”

Choosing to save for retirement or other goals you want to achieve is difficult. But as Daniel Rutsey says, “the biggest obstacle between you and prosperity is monthly payments.”

Get rid of them once and for all, when these are gone you can really focus on saving, investing and enjoying the good yourself.

“I never manage to pay it anyway”

Don’t give up – I even felt the feeling early in my 20s after a failed business startup. Find the motivation again!

Use a debt calculator and play with the numbers, see how quickly you can pay off by using the snowball method with just a few extra thousand notes you can cut out of consumption – or by earning an extra income.

“I don’t have time to focus on that”

"I never manage to pay it anyway"

Creating a budget does not have to be difficult, in fact, it is only good if you start out a little easy.

The most important thing is that you create something you manage to follow ish, I say ish because everyone makes a bad plan in the beginning. But, eventually you get better and better. So, make a bad plan and get better finances!

As a bonus, by tackling your debt problems, making a budget and following a plan, you will begin to feel a wonderful inner calm. And a pride that you’ve taken hold of your finances.

“It’s no big deal”

Even if you do not pay close attention to the effects of debt, it does not mean that they are not there. Think about how much you pay in down & down payments each month, how much isn’t it?
Do you want to continue to have down & down payments for the rest of your life?

Down & Down payments make it difficult to build a solid buffer, invest and avoid future debt and loans. By sacrificing a few months of intense debt repayment, you can have the rest of your life free of payments!

“Everyone has debt”

Many Norwegians have debt – and it is increasing, and increasing. That does not mean that it is OK with debt itself.

Do you feel ready to take on your debt? Start with a why – and continue with a budget and a plan for your money.

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Retirement Loans – What sets a senior loan apart from other loans?

What is a Retirement Loan? and is a senior loan / elder loan really that good? Here we will look at how an older loan differs from other types of loans on the market, who can get it and what the loan actually costs.

A retirement loan, often called a senior loan, is a type of loan that will provide retirees with extra income in old age, whether paid out as a lump sum or a monthly amount, the loan has a mortgage on the home.

How does a pensioner / senior loan work?

pension loan

  • You must own a home / property.
  • You must offer E-rate or value-added.

A so-called retirement or retirement loan works by having a bank lend you an amount based on the value of the home you own. If you have a mortgage or other mortgage-backed debt, these are paid out by the lender you choose.

First, you must contact a bank that offers a senior / pension loan, eg Bignote Bank or a local savings bank that offers this loan.

A senior loan may seem tempting, but it is also expensive.

After a few days, you will receive a loan application that you must complete and return to the bank. Furthermore, you must send the bank a new valuation / assessment of the property you own from a certified appraiser, with the exception of:

  • Apartments only need E-rates that can be booked by a real estate agent.
  • If the property has been recently purchased, no new tariff is needed, as the basis for the purchase price is the property the house was purchased for.

How Expensive is a Senior Loan / Retirement Loan?

With a senior loan you can choose whether you want to pay interest or installments. You do not have to pay down the loan and you can stay in the home for the rest of your life, whether you sell or move into a retirement home.

However, this does not mean that a pension loan is “free”. The loan amount you are offered is calculated on the basis of the “interest rate”, the expected life of the borrower and the value of the home.

Interest rate and senior loans

Interest rate

Interest rate may be your best friend, or your worst nightmare. Einstein called the interest rate for the eighth wonder of earth, which explains how important this principle is.

Senior loans work the same way. Here, the banks take advantage of the interest-rate effect by having the amount paid to you offset over time.

The loan will grow at an ever-increasing rate until it eventually eats up the value of the home.

As you can see, the effect of the interest rate will cause the debt to gallop off as the years go by and neither repayments nor interest are served.

So what does this mean for you as a borrower?

For you as a borrower, this does not mean anything and everything. Nor for any partner or cohabitant you may have.

The debt, on the other hand, has to be settled when you either die, sell the home or move to a retirement home.

Therefore, after many years of the interest-rate effect, there will not be much left of the values ​​of any heirs you may leave behind.

How Much Can You Get in Retirement Loans?

senior Loan / Retirement Loan?

How much you can get is calculated based on several factors, including your age, life expectancy, value in the home minus any residual debt and where the home is located.

Example: If you are 60 years old with a home worth 3 million in a big city, you can borrow USD 710 000 or USD 4160 a month. On the other hand, if you own the same dwelling but are 75 years old, you can borrow 1.2 million or almost USD 10,000 a month.

What you can borrow is therefore calculated according to the effect of the interest rate on the bank’s failure to lose money. The banks want to prevent the loan and interest rates from growing over several years so that the loan amount eventually exceeds the value of the home.

Is it wise to take a retirement loan?

A senior / pension loan can be a way to accelerate retirement when you get older without having to pay a loan or installment. The loan may therefore be best suited for single seniors who have no plans to leave anything to the heirs or family.

However, if you have children, grandchildren or other heirs, a senior / pension loan that is not serviced can quickly eat up the value of the property so that you do not leave much value left in the inheritance.

Most who inherit use the inheritance to pay down or refinance their own debt. When this opportunity falls away, the younger generation will find it even more difficult to become debt free, and thus the spiral will continue for generations.

Alternatives to retirement loans

Retirement loans are mainly attractive to elderly people without heirs and with a paid – or low – mortgaged housing. With a senior loan, you can then receive a larger sum as a lump sum or a smaller amount paid per month as long as you live.

You do not have to pay down interest or installments if you do not want to do so.

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Monthly debt figures: Calculate your personal debt figures

A debt figure is an indicator of how your personal finances are and can be stated in two different ways, monthly and total. With the formula to calculate your debt and loan debt, you can get a better overview of your personal finances and take any steps to reduce it effectively.

The debt ratio can motivate you to take control of your finances, and is also used by lenders and banks for any new loans and credits.

You can calculate two different versions of your debt figures: Total debt balance and your monthly income / debt ratio.

Debt figure 1: Monthly income / Debt ratio.

Debt figure 1: Monthly income / Debt ratio.

Your monthly debt figure is calculated by dividing your total monthly debt obligations and payments on your gross monthly income and written as a percentage.

For example: Let’s say my own monthly loan repayments consist of:

  • USD 8000 in monthly mortgage loans.
  • USD 1400 in car loans.
  • USD 1000 in credit card repayment.
  • USD 1200 in the loan box.

In sum, my debt repayment is $ 11,600 every single month. Let’s also say that my gross income each month is $ 38,000. The result is a monthly debt figure of 11600/38000 = 30%

A monthly debt figure of about 30% of gross monthly income is within what most of us can afford financially and still have disposable income for other purposes.

If, on the other hand, you get a figure that shows 40% or more, you may have trouble borrowing a new loan or credit, and it is advisable to find ways to reduce your debt.

Debt Ratio 2: Total Debt Loan

Total debt burden is a number that shows how your debt is relative to your total annual income and is especially important for loans for housing, for example.

The picture shows how the debt burden in Norway has increased in recent years / picture: Statistics Norway

The mortgage regulations stipulate that the total debt balance should not exceed 5x income, while Statistics Norway defines a high debt burden as “three times, or greater than the household’s total pre-tax income”.

Debt burden is defined as total debt in relation to gross income. The figure is calculated by simply adding up all debt, for example:

  • Mortgages (or future mortgages): USD 2,000,000
  • Car loan: 300,000 dollars
  • Credit card: USD 100,000
    In the new debt register, unused credit is also counted as debt.
  • Consumer loan: USD 50,000.

If a person with total debt of USD 2,450,000 and an income of USD 450,000 (before tax) the debt ratio will be 2450000/450000 = 5.4.
This person will then have a high debt ratio and will be vulnerable to future interest rate increases.

Debt burden and interest rate level

Debt burden and interest rate level

When we now calculate your debt figures, we only look at the total amount of debt, ie your debt load. We overlook another factor that is also very important for your personal finances, namely the level of interest rates.

Both debt burden and interest rates say something about the capacity to pay down debt. Loans or loans with a high interest rate mean that repayment of debt takes longer and costs more to complete. A high total debt ratio means that the household is also vulnerable in the event of a possible rise in interest rates on other loans (student loans, mortgages, etc.).

Reduce debt load

Reduce debt load

In essence, there are three ways to reduce the debt burden and debt ratio. First, of course, you have to calculate your own numbers and try to make some thoughts and assessments.

If you have a low debt figure, you can focus energy and profits towards investing in fund savings for future pensions or projects, for example. However, if you have a high debt ratio, you can lower it in several ways:

  • Increase your income
    Increasing your income will reduce your debt level relative to disposable income. You can also direct this extra income you create towards paying off extra on debt and further lowering the debt ratio.
  • Lower expenses
    Nobody likes to pay too much for things we need, review your finances and lower your fixed expenses.
  • Refinansier
    Refinance loans and debt with high interest burden. By collecting small loans into one new loan, you can also lower your monthly debt figures, pay less in fees and interest.

Follow the development of debt and loans over time, and gain extra motivation as you see the graphs begin to decline. Read more and download this free template for excel and openoffice.

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Check your credit score online – Know your credit score

Check your own credit health and see if you have a good credit score online. Get tips on how to improve your own personal credit score and take advantage of the opportunities a good credit health gives you.

A good credit health is crucial to good terms from where you buy services, especially with regard to loans and debt refinancing, a good personal credit score will have many benefits, but also within insurance, leasing and much more.

What is Good Credit Health?

Credit health / credit score consists of one number from 1 to 1000. This number represents the financial stability and ability a person has to meet their obligations over the next 12 months.

Did you know that with a credit score above 560 you will automatically be eligible for a loan?

In Norway, credit agencies such as Expohold Finance prepare these figures. Credit agencies look at a variety of data that they collect from lenders, financial institutions and public registers. With the Norwegian service Lite Lender you can check your own numbers for free and at the same time get your own offers that are calculated for your credit health.

How to get better credit rating?

To get a higher credit score and better credit health there are a number of things that help.

  • Stability

Changing your home address can have a negative impact on your credit score. On the other hand, living in the same place over time and also being married / living together contributions positively.

  • Your income

Have a constant focus on increasing – or having an upward stable income. Income that varies greatly from year to year will adversely affect your credit rating. See also suggestions on how to increase your income.

  • Disposable income

Your disposable income is money you have left after your expenses are paid. This is one number that particular banks are concerned about when they give you mortgages, but also credit. See how you can lower your fixed expenses.

  • punctuality

Paying your bills on time will have a positive effect on your credit health.

  • Gearing

The Debt Registry has entered into force and this will enter into your future credit score. Here is how you can calculate your own debt and net worth.

  • Sole proprietorships

Being self-employed can affect your credit rating. This is mainly because an self-employed person often does not pay social security contributions and will therefore not be entitled to unemployment benefits in the event of a bankruptcy in the company.

Check your credit health at 1 – 2 – 3

If you are curious about your own credit score then the Norwegian service Lite Lender has made it easy – and free for you to check yourself.

Saving Defend Bank works to provide you with the best conditions the market can offer. Based on your own credit score, you will then automatically be prepared non-binding offers that are completely unique to you and your credit health.

You verify via bank id and authorize you to be checked. Lite Lender takes care of the rest in a secure way and encrypts, among other things, information so that it does not get in the way of outsiders.

Is Credit Score Important?

Important Credit Score?

Few Norwegians today have a good overview of their own credit score and know little about what good or poor credit health means for their private finances. With a potential loan application, refinancing or even re-negotiation of loans, insurance and more, your credit rating will mean a lot for what interest rate level and conditions you can get.

Your credit rating is personal

Your credit score is personal and the number is created on an individual basis. This means that even if you are married or cohabit with a person with a poor credit score, this does not affect your rating.

If, on the other hand, you should take out debt and loan together, a credit assessment will be divided between you both.

Credit check myself?

Credit check myself?

It is quite possible to credit yourself via the free service Lite Lender. You get a good and visual overview of your own credit health and what you can possibly do to improve it.

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About Income Failure, Loans and Debt Problems

Need to know more about income failure, loans and debt problems?

If a household is affected by a temporary or short-term income decline, it may be enough to reduce monthly expenses for a period of time. There is a clear distinction between income failure and debt problems, just as there is a distinction between short-term problems and long-term problems in both categories. The failure of income may be due to temporary unemployment, illness or other affecting income for a period of time. In the case of temporary problems, it is important to adjust the expenditure to the changed income for the current period. Remember that the change should not increase debt.

All repayment of the debt stops

Term deferral is not the same as installment deferral. At term, all repayment of the debt stops, while interest rates continue to run and the loan grows from month to month. If installment deferral is paid, the interest rate on the loan remains the same balance throughout the deferral period. Deferral of installments may in some cases not be enough to make the calculation go up. In such cases, it is also possible to negotiate the interest rate down, for a period or permanently. If this also does not go together, it may be possible to freeze the interest rate, ie 0% interest is calculated during the period. In case of long-term income failure or if the debt is higher than the serviceability of a normal income, other, more permanent solutions must be chosen. If the problem is permanent and the interest rate on the mortgage is high, applying for refinancing in the municipality may be a solution.

Debt is a mixture of home loans and other debt

Debt is a mixture of home loans and other debt

The same applies if the debt is a mixture of home loans and other debt. Then, refinancing loans can be an important tool in debt reduction negotiations. Typically, the interest rate on these types of loans is below the normal market rate on mortgages. In case of debt problems of a more permanent nature, it may also be necessary to have parts of the interest rate deleted or the entire interest rate deleted. In many cases of serious debt problems, debt settlement will be the only possible solution; debt settlement with full or partial deletion of both interest and repayments.

Debt arrangement structure and implementation

Debt arrangement structure and implementation

The preparations for the Debt Settlement Act state something about the purpose of the law and something about the considerations to be taken. It states, among other things, that the law should provide debtors with an insurmountable debt burden the opportunity for a fresh start, without impairing the creditors’ right to payment more than necessary. Furthermore, it is important that the scheme does not weaken the ordinary payment morale or challenge the prevailing legal consciousness in society.
The preparations also mention something we should keep in mind: that the bulk of the claims that may be written off through the act of the law would in any case be lost to the creditors because of the debtor’s position. This is a basic principle that must be at the bottom of all advice and negotiation with regard to debt settlement. How this will work in practice, we shall now look at an example.

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Credit Card Debt Transfer

How to transfer credit card debt ? When the utilization rate and indebtedness as discussed Credit Cards, which were confirmed by quantitative data most commonly used in Turkey. In our daily life, we use our credit cards to postpone our expenditures by 1 month for many payments, shopping and even cash transactions. We make our cash flow more normal by paying minimum amount even if we have difficulty in payment. The fact that credit cards are widely used in our country is determined by the number of cards per person. As a result of the analyzes carried out in this case, the number of customers in a serious credit card debt is quite high. In such cases, credit card users may want to combine their debts under a single bank and streamline their payments through a single channel, rather than borrowing from multiple credit cards. When this is the case, the option is Credit Card Debt Transfer ! Let’s examine this process with all the details.

What is Credit Card Debt Transfer ?

Credit card debt transfer is one of the services that banks like to provide. Because, thanks to this service, banks increase their income considerably. Apart from increasing the income of banks, it is also popular due to the acquisition of new customers. As they will make you use a new credit card or credit to transfer your credit card debt, there will be a new customer, a new gateway for banks.

Credit card debt transfer system , credit card debtors, all debts under one roof; is the collection process in a single bank. Nowadays, the use of credit cards is quite common and there are multiple credit cards from almost every individual. This has negative consequences when it comes to unconscious expenditures. One of the negative results; to reach unpaid debts. Credit card users see the credit card debt transfer system as a way to repay their debt to various banks . Because with the transaction, dispersed debts are collected in a single bank and appropriate payment plans are adjusted according to the customer.

Credit Card Debt Transfer

Credit Card Debt Transfer

Credit card debt transfer starts with the person who borrows to various banks due to various bank cards and applies to the bank to collect the debts. Upon approval of this application, the amount transferred from the borrowing bank is divided into equal installments. The account cut date is then determined by the customer and expected to be paid.

In this system, the customer advantageous part; interest payments to different banks. Because with this transaction, the bank that was owed became the only bank. Moreover, bank customers will not be able to pay interest on the debts they cannot make their payment, and they will be free of legal proceedings. Consequently, there is no need for enforcement and foreclosure transactions, no lawsuit is filed against the customer and the MadeEZ Bank does not enter the black list, credit rating does not fall. From this perspective, it is advantageous to have a debt transfer for the cards .

When debt transfer transactions are approved by the applicant bank

The transaction can be performed in two ways and these applications may vary from bank to bank. In the first of these applications; the bank pays the customer the total amount of the debt in cash and the debtor makes the necessary payments himself. Sometimes banks ask their customers to present their debt-free document to their banks when the debt is provided in this way. In the other; banks take care of the debt situation among themselves and do not engage customers.

What are the Disadvantages of Transferring Credit Card Debt?

Credit Card Debt?

Credit card debt transfer transactions are generally offered to the borrower bank customers as an advantage, but this process also includes negativity for the customer. This is a service that the banks love and continuously provide because it serves the interests of the bank directly on the basis of the application. In credit card debt transfer, people have the advantage of collecting their debts in a single bank, while at the same time paying a high interest rate on this collective debt. That is, the total debt transferred from other banks; is repaid to the bank by applying high interest .

Credit card debt transfer transactions also incur additional charges. Under the name of transaction fee, a certain amount is charged to the customer after the application process. This fee is reflected in the first statement behind the structuring of debts and the bank customer pays this transaction fee along with the first-come statement.

What are the Credit Card Debt Transfer Terms?

Credit Card Debt

In order to carry out debt transfer on the cards , first of all, people must have more than one credit card and they must have debts. Another effective element; the credit rating of the person is sufficient. Because the credit rating is the degree of reliability of individuals in the eyes of banks. Therefore, if you owe to several banks through multiple cards , your credit rating should not be low if you plan to transfer credit card debt .

When transferring debts for cards , your credit record must also be proper and your credit score should be at a sufficient level. Because the bank to transfer your debt should trust you and analyze whether you will pay the debt you will transfer. If you do not have the ability to pay your credit card debt, if your previous payments are irregular and made to lower your credit rating, your debt transfer may be rejected.

  • High credit rating,
  • The credit record is smooth,
  • Making previous debt payments regularly,
  • No disruption to payments

The above conditions are among the conditions that are most taken into consideration by the banks . Debt transfer can be easily carried out by people who meet these conditions and who have a high credit record and who have a high credit score . If you want to transfer your credit card debt to other banks, you can apply with these criteria.

How to withdraw debt transfer loan?

If you think that you have fulfilled the above-mentioned requirements, you can review the campaigns of the banks you have previously worked on. Almost all banks currently carry out campaigns under the name of debt transfer loans in various periods. You can follow these campaigns and transfer your debts to new banks with appropriate interest rates.

You can apply for a loan transfer loan by reviewing the current campaigns of the top banks. As the campaigns offered by banks to obtain credit card debt transfer loans will be with various and different interest rates, the opportunities that each bank will offer to its customers may vary. You can still opt for the loan to be approved instantly by choosing the banks you worked with before.