If you live in Scandinavia and you’re struggling with several debt repayments, you ought to think about applying for a consolidation loan. It will not only make your debt management much easier. You will only have one monthly repayment to make instead of several, which are probably scheduled on different dates, and it can also reduce the overall amount of interest you’re currently having to pay, too.
How Consolidation Loan Tendering Works in Scandinavia
Wouldn’t it be nice if, instead of having to struggle to find a consolidation loan, lenders came to you, competing with each other to lend you money to consolidate your debts?
Well, it’s not a dream; it can happen, and that is exactly what Scandinavia’s alternative finance platforms do. By visiting such an online site in, say, Sweden and completing an online application form, they will put your application out for tendering and send you up to 20 or more loan offers from different trusted finance companies and banks, all fighting for your business.
The great thing about using alternative finance platforms like these is that you can do everything online. Forget about the worrying prospect of going through a daunting interview with your bank manager, or having to fill out lots of different application forms for each lender you approach.
With Scandinavia’s digital loan platforms, you only have to fill out one form. The tenderer will distribute your application to a number of reputable lenders, and within minutes, they will email or text you with a list of loan offers from prospective companies prepared to lend you the money you need.
Top Tips When Applying for Loans
Applying for loans from alternative finance tendering companies is quick and easy, but even so, it helps if you know how best to approach them. So here are a few tips which will improve your chances of getting the best loan to suit your needs.
Choose the Most Appropriate Loan Amount
The theory that makes consolidation loans work is that larger loans attract smaller rates of interest. The interest on one large consolidation loan should be significantly less than the total interest on the smaller loans you want to consolidate if you add them together. So, it should cost you less overall, but don’t apply for too much over the top. Remember that long term, your aim is to be debt-free.
Select the Most Suitable Loan Repayment Period
Choose the shortest repayment duration you can comfortably afford. The shorter the durations, the less it will cost you in total. But don’t overstretch your financial position. All of these loan consolidation tendering companies have user-friendly loan calculators. Just adjust the sliders for different loan sums and repayment periods and choose the values that best suit you.
Watch Base Interest Rates
Base interest rates are those laid down by a country’s central bank. A consolidation loan lender will add to the base rate to cover their costs and make some profit. The lower the base rate is to begin with, the less you will pay overall. Take this simplified example:
Loan Amount Base Rate Lenders Rate Total Repayment
10,000 4% (400) 10% (1,000) 11,400
10,000 1% (100) 10% (1,000) 11,100
It’s an oversimplification for demonstration purposes only, but it shows the principle. So, if you are not immediately financially pressed, make your move when the base rate is lower rather than higher. Keeping an eye on central bank base interest forecasts can help you to make the right decision. However, always bear in mind that economies and interest rates can be fickle.
Complete the Application Form Carefully and Honestly
Whether you are using a collective loan tendering platform in Denmark or another Nordic country, take care when completing the application form. Making an error could negatively impact the outcome. Also, be honest. Lenders are likely to verify your credit rating, and falsifying data could negate your application.
Consolidation loans are normally unsecured, but if you have a poor credit rating, it might help if you are prepared to offer up some form of collateral.
Residential Status and Other Restrictions
If you are applying to a loan consolidation platform in Norway, you need to be a resident. The same applies to all of the countries in Scandinavia. There is also a minimum age restriction in each country, usually set at 18, although some platforms may insist on you being 23 or even 25 years of age. You should also have a bank account and, ideally, a steady income.
Digital Loans for Other Purposes
We’ve talked mainly about consolidation loans, but if you’re looking for other types of personal loans, you’ll find a digital loan tendering platform in Denmark or in other Nordic countries that will tender loans for things like car purchases, unexpected but necessary costly repairs, travel and leisure purposes, student loans, etc.
Conclusion
The Fintech revolution has totally reformed the loan landscape worldwide. Banks, once the sole legitimate source of lending, have been left behind in the wake of the new digital platforms that have now established themselves. They offer an easier and more convenient application process, faster response times, and better outcomes.
