Refinance Credit Cards

Credit cards are basically a secure payment method with many benefits. However, the cards are also an overly tempting loan option for many of us. In total, hundreds of thousands of Norwegians are struggling with credit debt. Refinancing the card debt is the way to a better economy and far fewer worries.

 

Important for those who have credit debt

credit debt

The traps you avoid when refinancing, and the benefits you get with them, are the theme of the rest of this article. What you can read about:

  • The principle of refinancing
  • This saves you when you refinance your credit debt
  • Refinancing with and without collateral
  • The important psychological factors
  • Here’s how to find the best loan for refinancing

 

Replace the card debt with an unsecured loan

card debt with an unsecured loan

Many people choose to refinance credit card debt using a larger consumer loan, where they combine several cards at the same time. The main advantage is that consumer loans have a much lower interest rate (in most cases). If you have a medium credit rating it is not unrealistic to get an effective interest rate around 12 to 14%. Compare that to credit card rates and it will be easy to see why refinancing makes sense.

If you want to combine larger credit card amounts, for example, Accento Bank, Northian Bank or AnstaBank would be good alternatives. If your debt is lower, consider other offers, such as Santander Consumer Bank. You should disregard banks with consumer loans at the maximum limit of a few tens of thousands. Their conditions are usually at least as expensive as with the credit card companies.

 

This is refinancing

credit refinancing

Refinancing basically means you borrow money to get rid of other debt. The goal is usually to reduce costs. You do this by getting lower interest rates and fewer fees. The term is used not only for credit debt, but also in connection with mortgages, car loans, consumer loans or the like.

However, it is not only in connection with debt problems, or a desire to save costs, that we choose to refinance. For example, the same approach is used when we extend a mortgage to refurbish, or when we move a car loan from one bank to another. However, the refinancing of credit card debt is the most relevant issue.

 

Terms you get on unsecured loans

unsecured loans

The interest rates you offer on a loan without collateral vary greatly. Here, your own credit score will be decisive for the conditions, as all applications are assessed individually. The effective interest rates may at best be around 9%, but it is more common that they are around 12% to 14%. While this is more expensive than a home loan loan, most people benefit from a refinance. Especially if your credit debt includes multiple credit cards, and any small loans on top. This will save not only on nominal interest rates, but also on far fewer fees.

Among unsecured loan products, traditional consumer loans have the lowest interest rates. Today, there are banks offering such loans from approx. 7% interest. The assumption is that you have a good credit rating.

 

Big potential savings

savings loan

The cheapest credit cards have effective interest rates of about 15%, while the most expensive ones are well over 30%. In short, this means that unpaid credit debt will cost you somewhere between $ 150 and $ 300 per thousand, per year. If you owe an expensive credit company USD 100,000, you probably pay more than USD 30,000 a year only in interest and fees. In addition, you should pay down on the main itself. Even worse, if you own more credit cards.

How much you save on refinancing depends not only on the cost of your credit debt, but also on the loan you receive. In principle, you have two options, either a secured or an unsecured loan.

 

Secured loans are the cheapest

Secured loans are the cheapest

You will save the most if you can provide collateral mortgage for the loan used to pay off the credit debt. In practice, this means that you must own your own home. In order for a traditional home bank to give you a refinance loan, the following criteria must be met:

  • The home cannot be mortgaged with more than 85% of the market value.
  • You must have enough income to service the debt.
  • You must endure a potential interest rate increase of 5%.
  • You cannot have payment notes.

Already, many with credit debt fall outside, either because they do not own their own home or because the other conditions cannot be met.

Getting rid of your credit card debt is the step that can most often save you the most money with refinancing.

 

The psychological aspects

credit cards

If you collect all debt in a single loan, you also receive fewer bills in the mailbox. That in itself has an important psychological effect in many. It is less likely that one bill will be forgotten or intentionally overlooked. In other words, refinancing usually means that you have fewer worries.

Both the cost and psychological aspects become especially important when the debt is already problematic. Unfortunately, some people with credit debt use the same cards to pay past credit bills. This usually ends in an endless spiral, with ever-increasing debt and headaches.

Credit cards have very high effective interest rates. Refinancing helps you clear the debt in favor of a new loan package with better terms.

 

Find the best refinancing loan

refinancing loan

Saving money on refinancing debt from credit cards is quite easy. It should be well done that the interest rates do not improve, almost regardless of who you borrow from. However, you will of course save as much as possible. Here’s how to proceed:

  • Get more competitive offers from news banks.
  • Choose the bank with the lowest total cost when the loan is settled.
  • Choose the shortest repayment time possible.
  • Pay extra on the loan if you can.

Loan Refinancing: Get Rid Of Debt Faster

Refinancing is usually about getting better conditions, but not always. Moving debt can also be a measure to avoid debt collection, to reduce worries, or to fund an investment. Here you can read about the pros and cons, as well as some important things to consider when refinancing your loans.

 

Delete expensive debt from credit card and consumer loans

debt from credit card and consumer loans

Expensive debt is what is most often refinanced. Here credit cards and small consumer loans are in a special position. These products usually have the most expensive interest terms, in addition to relatively high fees. Among the badgers we find credit cards with interest rates in excess of 30%, and so-called micro loans with effective interest rates of several hundred percent.

However, it is expected that such debt will be settled quickly (interest is always stated per year). In the case of micro-loans, there may be talk of only one month. The interest rate may then not be so important in isolation, as long as the debt is settled in time. The problems with this type of debt are when a person has multiple loans or credits and fails to pay off the repayments. If the debt runs long enough, the problems are formally queued.

 

The purpose is to cut costs

Unfortunately, more and more of us end up in situations as described above. We see this both in statistical overviews and in the focus of the banks. It is no longer advertised as often with loan options for various common purposes. Instead, banks present solutions for how you can get total animal debt, with examples of how much you can save.

Vigilant borrowers also refinance their loans, even though they have not ended up in any kind of financial handicap. For these, it is all about shopping for better conditions. This is not unlike what many do when it comes to, for example, power agreements, or subscriptions to mobile telephony and broadband. The cheapest bank or supplier always captures new customers from competitors.

An average family of children can save large amounts on loan refinancing.

 

Lower repayments are one advantage

Lower repayments are one advantage

The cut in costs is probably in the minds of all who refinance their loans, but some focus more on reducing fixed payments. An example is people who just manage the monthly living expenses, and who have loans or credits as well. The revenue may be so that the wheels go around with an emergency scream. Nothing ends up with debt collection and delinquency, but there is no room for any excesses either.

A refinancing can then aim to reduce the monthly installments. This is despite the fact that the total cost after the repayment is higher. This is done by extending the loan repayment period. In most cases, the loan period is extended in the bank we already use. Alternatively, we can choose to transfer the loan to a more benevolent bank.

 

Also a mental aspect

loan finance

There are several psychological benefits to be gained for those who refinance animal debt. The reduction of costs is of course important. We feel we are getting better control of the economy, and we may be able to afford things we previously could not afford. For some, refinancing is also an important step in avoiding debt collection cases.

The fear of getting into debt problems can take over completely for some, leading to some kind of paralysis. We know from both professionals and media stories that many end up not daring to open their letters. The fear of sour reminders of unpaid installments can be a serious stress.

 

Other reasons to choose a refinancing solution

loan reasons to choose a refinancing solution

If you change the size of the loan to get funds for renovation, this is also a kind of refinancing.

A refinancing can also mean that we take on higher debt. Here are some examples of this:

  • Extension of mortgage to refurbish.
  • Extension of mortgages to provide equity for secondary housing.
  • Extension of mortgages for other investments.
  • Extension of mortgages to help children with equity to housing.

Such holdings are also called refinancing, although the bank is the same both before and after. However, it is quite common for refinancing in these situations to transfer the loan to another bank.

If you are a secure payer, have a mortgage to pledge, and in addition have spacious finances, the banks will gladly compete for you as a customer. This is discovering more and more of us. We are far less loyal to the banks today, compared to before. When we then need more money, we take the opportunity to get better deals than we had.

 

Difference between a secured and unsecured loan

unsecured loan

We also distinguish between refinancing with and without collateral. By security, the bank we borrow from means a mortgage on an object we own. As a rule, we are talking about a home we borrow, or another high-value object, such as vehicles, boats and cabins.

Refinancing without collateral is when we use an unsecured consumer loan to pay off other debt. The requirements for obtaining these loans are lower, but the absence of mortgage insurance means that interest costs will be higher than when the loan is secured.

 

Much to save if you know the terms of interest

Much to save if you know the terms of interest

Many people cut their costs by refinancing credit card debt.

If you are going to refinance debt from a consumer loan or credit card, consider the following approximate terms:

  • A cheap consumer loan has effective interest rates of about 9% to 10%.
  • An expensive consumer loan has effective interest rates around 20%.
  • An expensive small loan or micro loan may have interest rates of several hundred percent.
  • A cheap credit card has effective interest rates of about 15%.
  • An expensive credit card has effective interest rates of about 35%.

If your credits and loans are of the expensive kind, you will most likely be able to save large sums by refinancing. The impact will be particularly significant if you have more loans or credits. When you collect the debt, you save on both lower interest rates and fewer forward costs.

 

This is how you get the cheapest possible loan

cheapest possible loan

The most important thing when it comes to refinancing loans is to obtain a sufficient number of offers. You have no way of knowing which loan is the cheapest if you only apply to a single bank. This is especially true of consumer loans, since the banks here operate with different interest terms for each customer.

With that in mind, we suggest the following steps to refinance:

  • Use a finance agent, or search for as many banks as you can.
  • Obtain equal offers from all banks (total cost and down payment).
  • Choose the offer that offers the most savings.

In addition, you can improve your credit rating if you refinance with a co-borrower. In this case, this should be one with which you already have a shared economy (spouse or cohabitant). When two are responsible for the new loan, banks usually provide better interest rates.

Bank consumer loans

Lite Lender Bank is one of the country’s largest banks, and then it might just be missing that the bank also offers consumer loans to its customers. There are very many privately owned financial institutions and sub-companies of companies in other industries that offer just this, but if you apply for consumer loans through Lite Lender Bank you know that you are in safe and good hands. The terms for the loans from the Norwegian major bank are also not bad, and the biggest advantage is probably that the consumer loan is unsecured. This means that you spend the money on exactly what you want, while you do not have to pledge or equity to borrow from Lite Lender Bank!

 

Interest and conditions

consumer loans

With a consumer loan from Lite Lender Bank, you can apply to borrow as little as $ 10,000, or as much as $ 250,000. The terms and interest rates will vary depending on several factors, including how much you borrow, but primarily based on your own finances / income. Therefore, we cannot determine now how good interest rates you get from Lite Lender Bank, but the average interest rate for a medium-term loan is around 16 to 17 per cent. It’s not bad at all, and when the other terms at Lite Lender Bank are good, the bank is a good alternative when you need fast money.

You pay the repayment period yourself, but it must be at least 6 months and a maximum of 10 years. On the Lite Lender Bank website you can easily use a loan calculator where you calculate the repayment time based on the monthly amount. Included in the effective interest rate is also an entry fee of $ 500 (cheap compared to many competitors) and a monthly termination fee of $ 35. At Lite Lender Bank, you can also take out payment insurance that comes into effect if you should have payment problems on the loan.

 

Search Query

consumer loans

You can apply for consumer loans through Lite Lender Bank even if you are not a customer / have an online bank in the bank. Of course, it is easiest if you have it, but it is nevertheless problematic for “us others” to apply for consumer loans through the bank. The application form is somewhat comprehensive, but in 10 minutes you should have completed the application and at the same time received an answer to it. In addition, you must meet certain search criteria in order to be granted an application by Lite Lender Bank. This means an age limit of 23 years, and an income requirement where you must earn at least $ 150,000 / year regardless if you are borrowing just a little or a lot of money. You also cannot have payment notes and no active collection at the time of the search.

Small Loans provider – Apply on the same day

Do you need a consumer loan for a sum between $ 1,000 and 20,000? If so, you have found the right player, because when it comes to loan amounts of this size, Lite Lender is clearly the people’s favorite. This is a provider of so-called small loans, which is good for those who need money in a short time, but where there are no big sums. If you are lucky you will receive the loan on the account the same day you apply!

 

Terms and prices

loan

Lite Lender is in a somewhat unique position in Norway as they are one of the few loan providers offering loans of as little as $ 1000, with a maximum limit of only $ 20,000. With a loan of $ 2000 you have to repay the loan after 30 days, and then the effective interest rate becomes somewhat scary 1243 per cent. However, this does not amount to more than $ 81 in interest costs thanks to the short repayment period. And with a low setup fee of $ 350, it doesn’t have to cost you too much to borrow money from Lite Lender.

The set-up fee is fixed $ 350, no matter how much or little you choose to borrow. The termination fee is $ 45 and is charged monthly. Depending on the amount you borrow, the repayment period will also vary, from as little as 1 month to 12 months at most. The effective interest rate is also very variable depending on the size of the loan.

 

Benefits of the consumer loan

consumer loan

The main advantage of borrowing from Lite Lender is that you can borrow small sums that other banks do not offer. In addition, the loan is paid off very quickly, so that Lite Lender is the optimal provider when you need quick money to pay an overdue bill or for other reasons should have an urgent need for money on account. On the smallest loans, you pay almost nothing in interest, and the fast turnaround time alone is a good reason to choose Lite Lender when you need a small loan.

 

Apply for Lite Lender Small Loans

Small Loans

You can easily apply for small loans / consumer loans from Lite Lender through the company’s website. The application is so easy to complete that it takes a maximum of 1-2 minutes, and there is no need to document income or provide collateral for the loan. Also, Lite Lender does not have very strict search criteria for granting your application. If you are 20 years old then you have passed through the search criteria at Lite Lender.

What is the difference between loan and credit?

Loans and credit are two different ways to get some extra air into the economy. But there are two completely different methods, and both have both disadvantages and advantages. The right choice depends, among other things, on your personal preference, but also what you really want to spend your money on.

Here we give you an overview of the difference between the two methods, and we help you get a better insight into what is the optimal solution for you.

 

Important differences between loans and credit

loans and credit

Both loans and credit allow you to get some extra space in your budget and get advice on exactly what you need. But in practice, there are two very different things, and it actually plays a big part in which solution you choose.

Loan

In short, a loan is something you take from the bank or another lender, where you get paid out the whole amount at once, and then you have to repay after a certain period.

Credit

Credit, on the other hand, is a fixed amount available to you, eg on your credit card, but you don’t really get paid. There is money you can spend if you need it, and there is usually no set date for when you have to repay the money. There are many opportunities, and the different companies each have their own advantages.

 

Characteristics of loans

loans Characteristic

There are many different types of loans on the market, but generally it works by applying for a specific amount, eg $ 50,000, at a bank or another lender. Both the amount and the repayment period are agreed in advance, and you decide to a large extent yourself how much you want to borrow, and during which period the money will be repaid.

You get all the money paid out at once, and you can spend it on houses, cars, furniture or something else. Subsequently, you must repay the money within an agreed period, and this applies to both the borrowed amount and the interest accrued. It is an obvious choice if you are facing an investment with a specific amount, such as a new car, and if you want good control over a fixed repayment plan.

 

Characteristics of credit cards

credit cards

Credit cards give you the opportunity to get credit. It is, in fact, an amount, which you agree with the bank, which you can spend without you actually having the money on the card. You do not get paid the money, and there is instead an available amount that you can use if you suddenly need it.

You can choose to spend the money at any time and on anything, and you do not have to apply in advance. Therefore, it is a very flexible and practical solution, and it is the obvious choice if you want the freedom to spend extra money whenever you want. You can usually repay the money when you have air left in the budget, and of course you only pay interest if you have actually spent more than you have on the card.

Thus, you do not get the money paid out as with a loan, and you choose whether you really want to spend from the available amount available on your credit card.

What information does the bank require in order to process a loan request for operational financing?

When a bank is assessing whether you and your business are creditworthy, they often require extensive documentation that can be difficult to obtain. New technology makes this process much easier.

The loan terms you offer depend largely on how the bank assesses the risk of loss. The bank must therefore map the company’s business model, profitability, stability and operating history. The bank places requirements on equity and security, both of which are important aspects that need to be carefully considered. For example, the bank can take collateral in assets such as real estate, operating accessories, accounts receivable and inventory, all with the purpose of accumulating sufficient collateral for a loan.

 

The bank’s requirements for documentation

loan request

For the bank, documentation is about getting the most comprehensive picture of the company applying for funding. To assess the customer’s ability to pay, the bank needs access to the company’s accounts. The annual accounts are presented after the end of the year and are rarely completed before the second quarter of the year after the accounts have been closed. Then they should be made public. This means that banks often have to rely on old accounting information, which at the time of the credit rating is not as relevant. Furthermore, the financial statements provide a snapshot on the last day of December. For many companies, the financial statements presented do not give a correct picture of the operations.To compensate for this, one must then spend some time extracting and analyzing other data,

The bank is also committed to setting a repayment plan that is feasible and fits the company’s business model. In order to obtain security for the company’s liquidity, the bank needs insight into how the company’s cash portfolio is affected over time. This is best done through a good and well thought out liquidity budget.

 

A key aspect of operating finance is to secure the company’s turnover

A key aspect of operating finance is to secure the company

Here, the company’s claims volume is a good indicator. The bank looks for companies with a good spread in the loan portfolio, that is, the company’s future earnings do not depend on a few large customers that make the company vulnerable to customer loss.

Furthermore, the customer’s solidity and payment history are important. In this connection, the bank may request or conduct a credit check of the company’s counterparties as well as request insight into billing routines and payment terms.

When it comes to more complex financing, such as acquisition financing, the bank will require additional documentation than described above. This may include liquidity forecasts, budgeted projections of results and other relevant information.

 

This is considered by the bank as risky when financing accounts receivable

loan financing

When financing receivables, the bank is particularly concerned with analyzing the receivables of a potential customer with a focus on counterparty risk, ie the risk that an invoice counterparty cannot settle the claim. This analysis can reveal a number of risk factors, such as:

  • Customer payment history. Does the customer pay for maturity, or is it a pattern where some customers always pay too late?
  • Companies that have their customer base in industries with a high probability of bankruptcy
  • Customer sub invoices as part of a project that has not yet been completed or advance invoices for goods or services that have not yet been delivered to the invoice recipient
  • Since the bank takes collateral in outstanding debts, it is also necessary to check that the claims are real. For example, traditional factoring companies can call the counterparty and request confirmation of the validity of the invoice
  • Spread risk is also a factor the bank considers. A business that has few and large invoices outstanding with a small number of customers will have a greater risk per claim than a company that has smaller amounts outstanding with several

Providing all this information and documentation can be a resource-intensive process for both the bank and the company seeking funding. It can be a burden for the company to constantly respond to bank requests, and there may be little optimal systems in-house with both parties that delay processing further.

The solution to this could be to digitize the processes.

 

Digitized processes in the banking industry

Digitized processes in the banking industry

The Norwegian financial industry has been early in using digital technology, something the central bank governor has highlighted in the annual figures for 2018. Although payment solutions such as Vipps are often cited as an example in this type of context, digitalization has also helped to make financing easier in the corporate market.

Best Bank has chosen to connect directly to the customer’s cloud-based accounting systems to obtain updated accounting information. Where we previously had to ask the company or corporate accountant to put together a preliminary annual report or updated figures on developments so far in a financial year, we have streamlined the process by extracting real-time data.  

Retrieving relevant accounting data directly through a connection to the accounting system provides the bank with a much better basis for conducting a credit analysis and we do not need to bother the customer with time-consuming manual processes. This means that both the processing time is reduced considerably and that the customer does not have to report on an ongoing basis because the bank continuously coordinates the development itself through access to the accounting system.

 

Digitized operational financing enables flexibility

money loan

The ability to use large amounts of data in investment and credit assessments has increased significantly in recent years. This has enabled the bank to make more precise assessments and to simplify the process for the customer. One result of this is that the bank can offer very flexible solutions for operational financing and liquidity management.

At Best Bank we have the Whitepage operating credit solution. Through this product, we offer a flexible credit framework where you can lend your loan portfolio. Because we rely on real-time data, the credit limit can be updated every 24 hours. The frame swings in line with the claim mass and is predictable. The application and creation process is simple because everything is done digitally.

Finance prams, children’s clothing and baby gear with credit cards

If you have just had a child, you probably have already found out that it is not quite cheap. The extra expenses begin already during pregnancy and continue for many years to come. You can get help with getting everything you need by getting a credit card.

You can get credit cards for the purchase of strollers, toys, baby equipment, children’s clothing or other things. We help you find the right card for you so you can save the most money.

 

Credit card for stroller, children’s clothing, etc.

Credit card for stroller, children

In the overview below you will find credit cards for prams, children’s clothes, baby equipment etc. Check the companies and find out which card is best for you and your needs. You must also ensure that you can meet the company’s application criteria. Once you are sure of both, you can submit an application online.

First and foremost, a credit card gives you the opportunity to spend money that you don’t have yet. Most cards have a payment-free period, where you do not pay interest on the amount spent. It means that you can afford something here and now, even if you only have the money next month. You can use this solution whenever and wherever you want, and it gives you great flexibility as a consumer.

For example, you can use your credit card for prams and only pay the money in 30 or 45 days. After this period, interest will come on the borrowed amount, but this interest rate may be low compared to other options.

Many companies also offer you regular discounts on a wide range of stores and online stores. You can use this to your advantage and save a lot of money on different goods purchases. We help you find a credit card, which you can use to save money on products for your baby or your child. With us you can easily compare the possibilities and choose the card that best suits your needs.

 

Compare and search credit cards with us

credit cards with us

Use the chart above to compare your options. You decide for yourself what is most important to you. But we recommend that you look at the length of the pay-free period, what max. the amount is and how high the interest rate is. In addition, you can advantageously look at the various discount schemes that the company can offer. It can be CashBack, fixed discounts, points or similar.

It can be time-consuming and difficult to do this on your own, which is why we’ve made it easier for you by creating these listings. Submit an application through us or on the company’s own page and get your credit card for stroller already tomorrow.

Buy used and save a lot of money

save money

There are also other ways to save money on clothes and gear for your child. You may well choose to buy some of the things used. Children only wear clothes for a short time because they grow so fast. Therefore, you can find lots of nice, used clothes in good quality on the market. Of course, you can also see if you know friends or family who have older children. This way you can save a lot of money compared to buying new clothes and toys every time.