Some costs should be paid right away so that the sum does not increase. Other costs can be expected at times with better advice. Before deciding to apply for a loan, you should consider how important it is to get a loan per minute. Do you need the money for something that needs to be fixed immediately or can you wait to buy until you can afford it?
How much can you afford to borrow?
You should never apply for a loan that you are not sure you can pay off. We at Express Bank do not want to put anyone into debt, and we have criteria for minimum income and a credit rating that determines whether we grant a loan application. The final decision on whether you want to take out the loan we offer is up to you. Before applying for a loan, it is advisable to take an extra round if this is something you can afford. Ask yourself: How much can I afford to pay in interest and installments a month? Where can I possibly save?
Should you choose refinancing or consumer loans?
If you have a lot of consumer debt in the past, it may be worthwhile to choose refinancing. That means you collect your loans into one loan, so you get everything on one bill. Often, a refinancing loan will give you lower interest rates and thus less repayment. It is possible to pay a sum in addition to refinancing existing loans, so that you get the money you need and get everything in one loan.
Make a plan
You need to make a realistic plan for how to organize your finances. Create a budget. If your budget will require major tightening, you should try to follow it for a while before taking out the loan so that you can see if it is realistic. You must also consider how long you will spend on the repayment. If you pay down the loan over a long period of time you will have to pay more in interest, and the loan will be more expensive than if you pay down over a short time.
Keep in mind that to calculate the monthly expenses of a loan you must include the total cost, not just the nominal interest rate. The effective interest rate includes all fees and fees, and this is the one you should start from. Want to know more about nominal interest rates, installments and other financial terms? Access our financial glossary!
Read what you sign
You should take time to read the loan terms and conditions before signing on the loan offer. It is okay to know what you are signing and what you are committing to by taking out a loan. Read the agreement carefully. Don’t understand everything in the loan contract? Access our financial glossary!
It is also possible to apply for a loan with a spouse or registered partner. This can be smart because you then become two about the responsibility and two about the repayment. You should consider the pros and cons before applying for a loan together. For example, think about this: Can the financial obligations lead to strain on the relationship?
Clean up your debt before applying
Have a look in the debt register before applying for a new loan. If you have many unused credit cards, these can prevent you from getting a new loan. The credit limit on unused credit cards is counted as part of your total debt, and it cannot exceed five times the income for you to be granted a loan. You should therefore delete all unused credits and credit cards before applying for a loan. Similarly, it may be worthwhile to consolidate the loans and credit card debt you previously had into one loan. If you are granted a refinancing loan from us, we can ensure that the total cost of the new loan will be less reasonable than what you have today