In the past, you almost had to prove that you didn’t need a loan to borrow. Now TV and the Internet abound with ads for loan providers and their loan offers.
When you borrow without making collateral, it is a consumer loan you can take without having to provide security for the loan. You usually get the money paid out within a few days and can immediately start using them.
You have probably seen advertising for these loans: “loan money now without having to provide security”. It sounds tempting, of course, but there is good reason to look good.
There are several types of loans where you do not need to provide collateral. They can, roughly, be divided into two main types:
- Short-term small loans Here you can borrow up to approx. DKK 10,000 to be repaid within approx. 30 – 45 days.
- Mini-loans. Here you can borrow from DKK 5,000 up to DKK 20,000. The loan can repay over 1-3 years.
- Payday loans. Where you can borrow up to DKK 200,000. Usually, the quick loan is withdrawn over 12 – 96 months.
- Consumer loans Here you can borrow up to DKK 400,000, which can be repaid over several years.
Short-term small loans without collateral
Some of these small loans come with a very high interest rate. They can easily become extremely expensive acquaintances, especially if you do not comply with the terms of payment.
These loans should be considered a kind of “emergency loan”. Under no circumstances should they be considered on a par with ordinary loans.
The cost of these short-term loans may seem affordable. But over a longer period of time, these loans can be extremely expensive.
Do you borrow for example DKK 5,000 for 30 days, the costs will typically be approx. 900. If you take this loan for 12 consecutive months, the calculation looks like this:
In some situations, these loans may be appropriate:
- If your dog / cat is injured and needs surgery. This is an emergency situation that cannot wait until you have saved up.
- You see the washing machine / bike you have planned to buy at a greatly reduced price. Here, the savings can be greater than the cost of the loan.
Some loan providers offer the first loan for free. Ie You pay neither interest nor fees on the first loan.
You will often be better off without these short-term small loans. Consider first:
- If so, you need to borrow.
- Whether you have friends or family you can borrow from.
- Whether you can pay back the amount on time. Many overestimate their ability to pay back – even a small loan becomes expensive when there comes penalty and reminder fees on top.
- Whether you are better off with a regular consumer loan or quick loan.
Consumer loans without security
The slightly larger consumer loans where you do not need to provide security have also become more accessible. Especially after several banks have entered the market.
Here you can be offered consumer loans at regular bank rates. You also run into loan offers with much higher interest rates than the banks take – so look good!
You do not have the opportunity to see what these loans actually cost before you stand with a loan offer in hand. The interest rate is preferably reported as a yield spread (eg from 8.73% – 23.06%). You first know the interest provider offers you when you get an answer to your application.
Always make sure to apply to several loan providers so you have something to compare with. Choose the offer that suits you best.
The offer you receive is based on the provider’s discretion. If the provider estimates that you can easily comply with the agreement, you are offered a lower interest rate. The more insecure the provider is, the higher the rate you are offered.
Always make sure to apply to several loan providers so you have something to compare with. Choose the offer that suits you best!
How to avoid getting into the luxury trap
Before you borrow, you need to find out your need. Do you need a small temporary loan or do you need a larger amount you can pay over a longer period?
Find the loans that best cover your needs and apply for more of them. Only when you get a real loan offer do you know the actual costs.
Choose the loan that suits you best. Don’t let yourself be tempted to borrow more or borrow more than you need. The money must be paid back again!
Observe the payment deadlines! Automatic payments – either over BS or your Netbank. Should something unforeseen happen and you cannot comply with the payments, contact your loan provider as soon as possible.
Loan money now without security
Loan money now without security, so does the offers in the many advertisements for loans. According to various advertisements in TV and other media, offers from various loan portals on the web and many others, you will be happy only you borrow from them. Unfortunately, it’s not that easy.
See if you borrow – probably the most important advice you should listen to. At least BEFORE you move out into the loan market. The supply of loans is overwhelming and it can be difficult to choose the right loan. The net abounds with more or less serious loan portals offering “impartial” advice and guidance. All the while, they “forget” to mention that they are sponsored by even the same loan providers as they recommend.
You have to choose the loan that suits you – and preferably the cheapest offer you can get.
Loan money online. Easy, fast and easy
If you want to borrow money here and now, it is easy to find loans online. Google you “Loan money now” or “quick loan” you get hundreds of suggestions from Google. The loans are easy to find and it is both quick and easy to apply for the different loans. Here you get a concise and easily understandable review of the different types of loans you can encounter.
When borrowing from an online bank, do not explain what the money is to be used for. Your loan application is processed quickly. You get an answer right away – or within a few hours. The loan is in your account within a day or two. The interest on the loan in the online bank can easily compete with what your own bank can offer.
When you borrow money without security, there is almost always a consumer loan. You can get consumer loans from many different loan providers. You can also get a consumer loan in your own bank. The difference between borrowing in your own bank and an online loan provider lies in:
- Quick case processing at the online loan provider. You do not have to agree a meeting and no days are required for the preparation of loan documents.
- You should not explain what the borrowed money should be used for.
How much can you borrow and how long?
There is no limit to how much you can borrow at a consumer loan. The online consumer loans that exist today, however, have a limitation. Online you can borrow from NOK 100 – DKK 400,000. The maturity of a consumer loan also depends on where you borrow. Online consumer loans typically range from 12 months to 15 years. However, there are short-term loans where the maturity is between 1 – 45 days.
What does a consumer loan cost?
The cost of consumer loans varies greatly. However, the best online consumer loans can easily compete with the banks’ best offers.
There are two types of quick loans: Short-term loans and ordinary quick loans. The short-term quick loans are those that have been blamed in the press. Quick loans differ from consumer loans in two areas:
- The mortgage loan’s loan ceiling is lower than with Consumer loans (Typically around DKK 50,000 and Max. DKK 200,000).
- Mortgages have ultra-fast processing. You will receive an answer to your application immediately and the loan will be paid the same day – or the day after.
The cost of quick loans can be slightly higher than with ordinary consumer loans. However, this is not always the case.
The mini loan differs from single loan by the fact that the loan ceiling is lower. With a mini loan you can typically borrow from NOK 500 – DKK 50,000. The maturity is preferably between 12 – 80 months, but there are exceptions.
Micro loans – Small short-term loans
Micro loans are rightly the term for a particular type of loan you see in developing countries. However, the term is also used for smaller loans that are obtained through online loan providers. For micro loans you can borrow between DKK 100 and DKK 10-000. The loan must be repaid within 30-45 days.
SMS loans are an older term. However, the term is still used, even if you do not borrow by sending an SMS more. Today, you borrow online, either with a PC / Mac or via the Mobile phone. Loan amounts and maturities are at the same level as quick loans – though with some exceptions.
Mobile loan is the replacement for the SMS loan. Today, most online loan providers have websites adapted to modern mobile phones. You can basically apply for the loans are in the categories: Consumer loans, Quick loans, Minilån, Micro loans and SMS loans.
You can borrow money for FREE! Several loan providers offer first loan for free. So; an interest rate of 0%, without fees and with an APR of 0%. However, this offer only applies for the first time you borrow from the loan provider in question. The loan amount is usually limited to approx. ISK 3,000 – ISK 4,000. However, the amount is raised if you subsequently want a new loan.
Be careful not to end up in the luxury trap!
You must be careful with these offers! Failure to comply with payment deadlines will result in extra high penalty rates and expensive reminders. The short-term loan types are only usable in very special cases – usually you will be better off with a “real” loan.
Choose the loan that suits your situation
Don’t take the first and best loan. Find the loan type that best suits you and find the best loan providers. Choose at least 3, preferably more, providers and apply for loans from all of them. Compare the different loan offers and choose the best one.
You do not know the final cost of the loan before you have a specific loan offer. Borrow providers assess your credit rating AFTER they have received your application. Here is the interest rate you have to pay – and this is stated in the loan offer you get. You can easily compare the different loan offers – and you can compare the offers with a similar loan offer from your own bank.
Loan money quickly without security. Consumer loans | payday loans
Loan money quickly without any security is for you who need money quickly and preferably without much bureaucracy. Fortunately, you have more opportunities to borrow without having to provide security – yes, you have so many that it can be difficult to choose right.
Choose the right loan
When you go out on the loan market, you must choose the loan that suits your situation. Do you need to use cash for a short or long time? How much do you want to borrow? What does it cost? Are just some of the issues that come up. Start by finding out what type of loan is best for you.
There are many types of loans. Almost as many as there are reasons to borrow. When it comes to loan money quickly without security, then the usable options fall into the category of Consumer Loans.
Consumer loans without security
When you want to borrow money without security, it is usually consumer loans you need to look for. It is rare you will be asked for security when you borrow for consumption. You will find consumer loans in the banks, online banks and with various loan providers on the web.
For unsecured consumer loans, you have the following options:
Where you were previously forced to go into your own bank when you had to borrow, the web today abounds with offers for loans. It’s not just frivolous loan offers from dubious loan providers you find there. Several banks are coming in and online banks have emerged. You are no longer dependent on your own bank, but can freely choose where you want to borrow.
Loans in own bank
Your own bank can offer you a consumer loan without the need to provide security for the loan. If you are going to use the loan here and now, it is probably not your own bank you have to ask. Here, the case processing often takes an unreasonably long time. In addition, you must explain what the money is to be used for. The bank must also be convinced that you cannot live without the use of the loan.
If you have time to wait, it may be a good idea to also get a loan offer from your own bank. They know your finances almost better than yourself.
Loans in another bank
You can apply for consumer loans in any physical bank. However, most will require you to move your other banking business to them. If you borrow in another physical bank, it hardly goes faster than in your own bank. In a foreign bank, you must also explain what you need to use the consumer loan for.
Loans in an online bank
Online banks rarely require you to move current bank transactions over. The online bank does not interfere with what you spend the money on – and then they are fast. You get an answer right away – or in hours. The money is in the account within a day or two.
Online banks are competitive and you can often save money by borrowing from the virtual banks.
Fast quick loans without security
You may have heard of the media through the media? Kviklån has received extremely poor publicity in TV, newspapers and other media. There are two reasons for this:
- The quick loans mentioned in the media are short-term. These are smaller loans that typically run for 30 days or less. The short maturity often entails high interest rates and APR.
- Many who take a short-term loan should have taken a completely different loan. The short-term quick loans are ONLY suitable for exceptional cases – rarely when you need a loan.
A short-term quick loan is only usable in some very special situations:
You are saving up for a new racing bike. You suddenly see the racing bike set up with DKK 4,995 online. There are few left – and you still lack 2,500 in your savings.
Your parents are taken to Spain. All your friends are on a canoe trip and have no power on their mobile.
A short-term quick loan may cost DKK 800, but you save DKK 4,995 on the racing bike you would still buy the next time you receive a salary.
Those who need a loan and take a short-term loan instead need a quick short-term loan. It ends up being a very expensive way to borrow money!
Fast quick loans with longer maturities
Most (besides media and politicians) link the word “quick loan” with “quick loan”. That is, quick loans are loans with quick processing. Quick loans differ from other consumer loans by having a quick case handling and a loan limit of between DKK 5,000 and DKK 200,000.
What are the requirements for you to borrow?
The requirements you have to meet depend on where you borrow and how much you borrow. If you borrow less than DKK 20,000, you are rarely required to document your income. If you borrow from 20,000 and up, most providers require documentation for income – latest payslips and / or annual statement from SKAT.
A few providers require you to be 18.
Most providers require you to be 20.
Some providers require you to be full 23.
- Place of residence
Most providers require you to reside (Population register address) in Denmark.
A few providers have no residence requirements.
- Other requirements
There are often requirements for: Phone, e-mail, NemID.
- RKI & Debtor Register
You must not be registered as “Poor Payer” in these registers.
There are both advantages and disadvantages of consumer loans. A consumer loan is more expensive than, for example, car loans and mortgages, where you place car / housing as security for the loan. Otherwise:
- The interest rates on a consumer loan are preferably higher than for loans where security is provided.
- Great offer. It can be difficult to overlook which loan to choose.
- The final cost of borrowing online is not known to you until you receive a loan offer.
- Easy and quick to borrow.
- Great offer. You can get loans that fit any situation.
- When you apply online, you get a non-binding offer for loans. You can search for more loans and choose the best deals.
See you before you borrow
You need to look good when it comes to consumer loans. There are very large differences in interest rates and fees among the various loan providers. You can save a lot of money by applying for loans from several different loan providers – you can also compare offers with your own bank.
If you are looking for a loan from an online loan provider, you will see a yield spread. It can e.g. be “from 5 – 15%”. The final interest rate determines the loan provider first when you apply for a loan. The interest rate will depend on an individual credit rating. How your credit rating becomes depends on your age, housing situation, income, etc. Since loan providers do not necessarily assess your creditworthiness equally, the cost of borrowing may vary widely.
Find several different loans – and choose the one that suits you best!
Be sure to observe the conditions. Even smaller loans can be an expensive pleasure if penalties and fees are added. Pay particular attention to the short-term loans that would like extra high APR.
Don’t borrow if you can’t repay the loan within the agreed time!