Consumer Loans Questions And Answers

We have received a number of inquiries from our readers about consumer loans and how it works. That is why we have compiled a small list of questions and answers about consumer loans.


I earn less than $ 120,000 a year – can I apply for a consumer loan?

I earn less than $ 120,000 a year - can I apply for a consumer loan?

Different companies have different requirements, but usually a gross annual income of less than $ 120,000 is too low. If you are a member of a customer program such as Nordea’s Check-in program, you may be able to get a loan even if you have a low annual income.

If you are not a member of a client program, we recommend applying with a co-applicant as this will increase your chances. Realistically, it can quickly become difficult to repay a loan if you earn less than $ 120,000 a year. Not only do you have to pay off the loan, but you also have to survive.


I have applied for $ 250,000 – will the whole amount be granted?

money loan

How much you can borrow will vary from person to person. Even if you apply for $ 250,000, it may not be granted. The lender will look at a number of things when evaluating your application such as income, debt records, credit history and more. Based on this assessment, the lender will either offer you or reject your application.

In other words, the amount you borrow and the interest you pay for the loan are based on how “attractive” you are as a customer. It does not help to have high income if you have a lot of outstanding debt.

Many banks want to lend money to existing customers as it is easier for the bank to get an overview of the customer’s ability to pay. It is also possible that the bank is willing to offer you better conditions if you are a “good customer”.

Let’s take a closer look at Nola Oldman. Nola has just applied for a consumer loan with no collateral of $ 300,000 in the bank where he has been a customer for almost 10 years. The bank reviews its application and decides that it falls into a “low risk group”. Against this backdrop, the bank decides to grant 80% of the amount it has applied for. The reason he doesn’t get 100% is because his debts are a little too big.

Something you should always check is whether you have to pay a setup fee for granted and paid loans. There are banks that do not charge such fees, so this is something you should check.


How long do I have to repay the loan ?

How long do I have to repay the loan ?

Normally no more than 15 years. Knowing Bank, a new player in the market, offers consumer loans without down payment. Yes, you heard correctly, there is no down time. It is not always as good when you do not have a time to deal with, so here you should be careful.

Most people who receive a consumer loan choose to repay the loan within 5-7 years. The faster you repay the loan, the better it is for your finances. As you probably know, if you choose to repay the loan over a period of 15 years, the interest cost can quickly be high.

Consumable loans, like all loans, must be repaid within a certain period of time and can quickly become expensive if you are unable to control your finances. Before you apply for a loan, it is important that you settle with yourself and your personal finances.


Can I take out a loan to pay off my existing small loans and credit card debt?

Can I take out a loan to pay off my existing small loans and credit card debt?

Yes you can! Indeed, it is common for consumers to choose to refinance expensive small loans. Not only do you save money, but you also get a better overview of your finances.


Can I apply for a loan even if I have payment notes?

Can I apply for a loan even if I have payment notes?

Most banks will refuse a loan application if you have payment notes or ongoing debt collection cases. There are companies like Bluefoot Finance that provide loans to consumers who are struggling with bad credit history. If you are one of those who get a loan from Bluefoot Finans then you must expect the interest cost to be high.

After all, it is important that you have an open dialogue with the bank if you are struggling to repay your loan. A payment note is very unnecessary and it will make your life more difficult.

No Comments

Leave a Comment