What to Do if You Får Ikke Lån

It’s not exactly a secret these days that for most of the big purchases out there, we have to take out a loan to afford them.  Perhaps the biggest example of this is trying to buy a home – they’re quite expensive, and without mortgages, a lot of us simply wouldn’t be able to purchase one.  With that in mind, though, you may be wondering what happens if we aren’t able to take out a loan.

While that might sound rather odd, you’d be surprised at how often it becomes an issue.  Unfortunately, there’s a lot of factors that go into whether a person is creditworthy or not – at least, in the eyes of lenders.  Many financial institutions and banks will simply not approve a person for a credit agreement in certain circumstances.

Today, we’ll be covering what some of those circumstances might look like, as well as how you can turn things around so to speak.  While it might be a difficult challenge to get yourself out of a financial hole of sorts, it will be well worth it once you reach the other side of the journey.  If any of that sounds intriguing to you, make sure to stick around!

Loans: What are they, and how do they work?

Now, naturally, our first order of business today will be to discuss what loans and credit agreements are.  How do they work, and is it really important that we know this stuff?  You can probably guess that the answer to the latter question is “yes,” although if you do want to know more about why that is, we’ll be delving into it.

Something that’s quite key to keep in mind is that each of us has something known as a “credit score.”  This is essentially a figure that determines whether or not major lenders and financial institutions will consider us creditworthy.  If you aren’t aware of what yours is, though, that can cause some issues in the future.

If you are finding that trenger penger får ikke lån, then you may want to start investigating what your credit score is.  Thankfully, there are plenty of resources that we can use to get a gauge for what ours is.  It’s one of the main reasons that people get rejected, after all.

What are credit scores though, and what do they represent?  Put simply, they’re a figure that is calculated by looking at your previous history with bills and credit agreements.  So, whether that’s another loan, a credit card, or even something as simple as paying your monthly rent, there’s a good chance that it will be reflected in this score.

The numerical system itself is fairly simple, thankfully.  The main thing to know here is that there’s a range from about three hundred to eight-hundred and fifty, and it goes from “very poor” to “excellent” in the way that lenders view them.  You can likely extrapolate which end of the spectrum is which, but just in case, it goes from low numbers to high numbers.

Each time that you submit an application for a credit agreement, no matter what type of loan that it is, you’re likely to end up with something known as a “soft” or a “hard” inquiry.  This is essentially just the institution checking out what your score is.  It will dock a few points from you, so that’s why there’s advice out there that warns us of applying for too many credit cards at once (as just one example of how this might happen).

Shifting gears, though, a loan is when a financial institution allows someone to borrow from them, with the agreement that the amount will be paid back in full plus interest.  Interest rates are often what land folks in trouble, as they are why a seemingly small loan can end up becoming much more expensive.  Pay close attention to the rates that you are offered.

Reasons You Might be Denied a Loan

With some of the basic details about this topic out of the way, let’s examine some of the reasons that you may end up not being accepted or approved for a credit agreement.  As you’ve likely already guessed, there’s more to the story here than just credit scores.  The first thing that you’ll want to think about next is the general state of your finances.

Admittedly, this probably sounds like obvious advice.  Ideally, we’re all at least somewhat familiar with the state of our finances – hopefully more than somewhat, really.  Still, though, it’s surprising what can slip under our radars when we aren’t really thinking about it.  If you get rejected, make sure that you check on any current loans or debts that you have.

Something like going into debt collection can have a staunchly negative impact on your approval odds, so it’s best to attend to those matters as soon as possible.  Is there anything else, though?  Well, several other things tend to impact our general approval odds.

This list is far from comprehensive but does provide some good food for thought.  Your current income is one of those factors, along with age, your net worth, how often you move locations, and if you have payment notes from other loans.  Again, not all-encompassing, but hopefully this gives you a sense of what we are talking about here.

How to Increase Your Approval Odds

So – by now, you’re probably wondering how you can go about actually solving this issue.  After all, if you’re in a tight spot and you need to get a loan, it can be really troublesome not to be able to borrow that cash.  This of course raises plenty of challenges that we have to take into account.

Your first step in improving your odds is pretty simple but can be rather daunting.  Resources like this can explain it, https://journals.sagepub.com/doi/abs/10.1177/002224298204600209, but the gist is that you’ll want to do your best to pay off any previous debts that you have.  This is one of the best ways to raise your credit score quickly and efficiently.

However, it’s not the only thing to bear in mind.  We do have a few other options to explore.  Namely, it may not hurt to look at your overall spending habits and try to adjust your budget entirely.  While this may not have as immediate of an impact, it will demonstrate that you’re making changes as well as giving you more wiggle room to be able to afford a new debt.

Another option that you may want to explore is to apply with a co-signer or co-borrower.  Typically, we hear about them in reference to student loans in other countries, but they are a viable way to raise your approval odds rather instantaneously.  There are some caveats here, though, and they’re pretty important to be aware of.

For one thing, if you do decide to take this route, it’ll be important to pick the “right” co-signer.  By this, we mean that you will want to find someone willing to sign onto a loan with you that has a higher credit score than you do.  This won’t always be easy.

There’s also the fact that they’ll end up responsible if you aren’t able to make repayments, so they’ll need to be someone that you have strong mutual trust with.  That’s probably why most folks have a family member to help them out in this process, although there are challenges to that approach as well.

Why Does Any of This Matter?

On a final note, at least for today, let’s discuss why any of this is important in the first place.  Hopefully you’ve already got some sense of that thus far, but don’t worry if you’re still scratching your head.  The main thing is that inevitably, at some point in our lives, we will need to borrow money.

When that’s the case, most of us can probably agree that we would rather not have our application denied because of anything that was discussed above.  What is the solution to that?  Well, knowledge, of course.  It’s why we covered this topic in the first place.

Here in Norway, there are a lot of restrictions placed around borrowing and loans, so it never hurts to become more educated on that.  Even if you aren’t a citizen there, you may still want to consider borrowing from lenders there.  Beyond just that, though, there’s also the simple fact that we should all strive to be more aware of our own personal finances and how these things operate.

Thus, it really shouldn’t seem all that unusual that we’ve covered this topic so extensively here.  Now, don’t be afraid to check out some of the resources that we’ve provided if you still have questions about anything or would like to learn more about a specific line of inquiry.

Remember, too, that there are some loan options even for those of us out there struggling to improve our credit scores.  They may have higher interest rates than some of the alternatives, but that is kind of just the price that we pay in these circumstances.  It can still be worth checking them out, especially for anyone who is in a pinch.

In general, though, just note that borrowing money and getting into debt can be a bit of a slippery slope.  Try to limit your spending to needs, at least if you’re using a credit card or something like that.  Budgeting isn’t just good for building your approval odds, but rather, a technique that we should try to incorporate into our lives as much as we can.