When the banks are to grant new loans, it is now obliged to check the information in the debt register. Earlier this year came new rules, which say that you as a customer will not be granted a loan if you have more than five times the annual income in total debt. The Debt Register helps banks to follow up on this rule, in addition to helping banks to quality assure the information provided in the loan application. But what does this mean for you as a customer?
1. You may be denied your loan application when you apply for new credit
If you have more than five times the annual income in debt, you will not be granted a new loan or credit card. The register ensures that banks do not lend money to customers who are not eligible for more loans. This is also an added security for you as a customer, as this will help you to service the debt you have. The new register, on the other hand, does not show mortgages or other pledged debt.
2. You should delete open credits that are not in use
If you have an unused credit card lying around, you should delete it now. The credit limit on the card is considered as part of your total debt, which creates problems for you if you later wish to apply for a new loan or credit card. To terminate a credit or credit card, you must contact the bank through which you received the credit to cancel it. You can find an overview of all open credits in the debt register.
3. You can get a better overview of your loans.
The Debt Register helps you get an overview of all the debts you have, so it can be a great opportunity to clean up the economy. If you have many small loans, you should apply to refinance everything in one loan. You save money on refinancing, while getting fewer bills to keep track of. It is your total debt that has something to say when applying for a loan, but it looks more neat if you have a larger loan with a bank, than many small loans.
4. The register is updated daily
The debt register is constantly updated, so if you have canceled a credit this will be visible in the debt register shortly. If you are in the process of applying for a new loan or credit card, this will not slow down the process very much – if you immediately delete debts and credits that are not in use.
There are three different debt registers in Norway today, Norwegian debt information and Exporian Financing. Your debt information will be registered on all sides. In order to terminate a customer relationship, it is important that you contact the financial institution you are the customer in to terminate. It is never enough to cut the card in half.