The 3 Important Things To Consider Before Applying For Consumer Loan |  Founder's Guide

If you are a person who is planning to buy a house and automobile or preparing a wedding, and even when you need funds for your education, then applying for a loan will come to your mind. There is nothing wrong with borrowing money from various lenders because even the richest men on Earth have surely borrowed some once in their life. You just need to decide and carefully plan on how to use or where to spend this money because regardless of the amount, it is still a debt that must be repaid in due time.

I guess you should try dealing with forbrukslån or consumer loans available in the city because there are countless financing firms with this type of service. Pretty sure that a lot of individuals would like to travel or spend holidays abroad, buy a brand new car, and have their own home, so opportunities must not be missed if you can grab the chance. Keep in mind that there are people who cannot manage to send credit applications because they are afraid that they cannot repay on time or they have no collateral to present.

You should know that instead of thinking about things that have not yet happened, it is better to understand how you are going to repay because there will surely be a way that will work for you. The creditors are all prepared and can give you repaying options so that you won’t have to miss the opportunities that will just come once in a lifetime. Let’s say that the financing firms will provide you payment deals that you can afford, basing on your source of income or how much money you can produce.

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What about Repayment Methods?

Before you consider borrowing money from any lending firm, you should think about how you will repay because remember that you have options and choose the one that suits your capability. The one that you think is ideal for your case must be selected because you have the interest to pay and this can be affected if you miss your due date. Let’s say that you would like to apply for a consumer loan through firms like the Forbrukslån, you will have to know their policies on repayment and if what they offer is fine, then go for it.

For example, you want to apply for a housing loan and with this, lending rates come with the margin and reference rate where the method chose will have an impact on the interest for a certain period or duration of the loan. Learn how you would like to settle this because you may pay every month with an equal amount and you may also choose how long you would like to pay off your debt.

Equal installments

With this method, you may have to think about paying off a larger amount from the start. This is a big choice and a decision to make for your monthly installment fees because this may fluctuate, depending on the interest.

For example, if there is an increase in the reference rate, then the payoff will also increase, and if it will be decreased, then the repayment will drop down as well. But you should know that there won’t be changes on the installment. However, if there are no changes in the interest rate, the principal loan drops as the interest go down.

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Equal Payment

You may want to find out when exactly the period of your loan will end and this is a good thought because it would be easier for you to manage your expenses. Let’s say that you can make adjustments later on your spending since the interest rate may increase though it would be great if this will decrease.

In this method, look at the start of your loan period because the installment plus the interest will have to be of equal size. The payoff will only change when there are changes in the interest rate. At first, the installment proportion may be small but will rise during the loan period as the interest proportion decreases.

Fixed Annuity

I supposed this is a very handy method when you do not mind about how long you wanted to pay back but your only concern is how much you are going to spend every month or year since this is on an installment basis. Anyway, the fees will be equal throughout the period and are calculated in advance, that’s why you will get an idea right away. Continue reading from for more information 

However, your debt period will be extended when there is an increase in your reference rate and when it drops, the period will be shortened. There won’t be any modifications when it comes to the interest so it is always the same as the cost of the repayment.

During the period where you draw down the credit and if the level of the lending rate is very low, there could be an extension of the period due to a hindered amortization. In this case, you may request a more suitable repayment plan from the bank or financing company.


When it comes to a temporary financing solution, you may go for a bullet method. Let’s say that you run out of cash and you don’t use credit or visa cards. So you have gone to a lender and borrow money for use.

Since this is just the only way to fund your urgent expenses, you planned to pay them back as soon as possible. You will return the whole amount in one time but you cannot escape from added fees.

Installment-free period

This is a method used to pay the lending rate. That is when your money is not yet enough for the principal. In this way, the period can be extended or increase the installments.

You may apply this way when you are paying a house and lot, educational fees, or automobile. As a borrower, you are not hiding from the creditor; you are just trying to find a way to extend the period.

By mirelas