Consumer Credit and How to Apply

Nowadays, many people take out consumer credit when it comes to financing for a bigger purchase. Consumer credit refers to loans that are larger than the usual quick fixes. Usually, consumer credit is over USD 2,000 and can be as high as tens of thousands of dollars.

What is consumer credit

What is consumer credit

Many may wonder what is consumer credit. This is a lump-sum loan that can be taken out whenever you need it. For example, if you take out a consumer credit of $ 3,000, you can take out, for example, $ 100 of it when you need a loan. You have $ 2,900 in credit left, which you can use to pay off your items whenever needed. Consumer credit is a bit like a credit card, it’s an overdraft that you can use whenever you need it.

In the autumn of 2019, consumer credit came with an interest rate cap, so the consumer credit interest rate can no longer be anything. Due to the interest rate ceiling, consumer credit rates are therefore lower than before. The interest rate on a consumer credit may not exceed 20%. An annual ceiling of USD 150 has also been set for credit costs. It may be, this encourages credit companies to select their clients more carefully.

Where in the past it was possible to obtain a loan without income statement, nowadays loan companies can be much more specific about who they are lending to. Larger loans always require regular income from the applicant and often need to be accompanied by some proof, such as a payslip or bank statement. Regular income does not necessarily have to be wage income, but a pension or other benefit can also be counted as such income.

How To Get Consumer Credit?

How To Get Consumer Credit?

Applying for consumer credit is just like applying for any type of credit on the net, by filling out a form online. There are many different loan companies on the internet, so it is also worth comparing with consumer loans. There are many differences between them, particularly in terms of interest rates and costs. When applying for consumer credit, you must also have a good credit history.

Credit information may not contain any defaults, so if you have one, it may be virtually impossible to obtain a consumer credit. In addition, you should be able to send vouchers, for example, from an account statement as an attachment to an email or by mail to a loan company. If all is well, you can apply for a loan and get a quick reply via SMS. You can then take out a small amount of consumer credit or as much as you need. Withdrawing has been made very simple and usually takes place on the loan company’s own website, which is logged in either with passwords or with your own online banking account.

Consumer credit $ 1,000 to the account


If you are interested in a smaller loan, such as a consumer credit of $ 1,000 or less, you might want to check if one is available online. Another way to take out a $ 1,000 loan is to take a bigger consumer credit, but only make the necessary $ 1,000/60 available. However, it is worth remembering that consumer loans have different costs, which are often determined by how many withdrawals you make from your account.

Each withdrawal can be subject to a fee, for example, $ 5 or more. Therefore, it is worth considering whether it is cheaper to withdraw a larger amount in one loan or several small loans in installments, in which case you have to pay for each draw separately. The good thing about consumer loans is that they usually get a lot of payout time. Consumer loans can have several years to pay off, and you don’t have to pay off a large drawn amount at once.

Do you have an interest account with Bank Norwegian? It offers a very competitive 0.75% interest rate on your savings account. No Finnish bank can match the corresponding interest rate. If you’re wondering how to handle bank Norwegian tax returns, then don’t worry. Bank Norwegian will automatically report the interest account income to the Finnish tax authorities and the information will be available in your tax return in the spring.