Have you recently heard of refinancing on the day, and you’re wondering what it is? If this is your situation, then you’ve come to the right place. In this article, we will provide a detailed guide revealing everything you need to know about this type of loan. Let’s get started.
Refinancing on the Day Explained
To get us started, we need to understand what refinancing on the day is all about. This is a financial solution that allows you to take out a loan which you’ll receive on the same day. The money you borrow is meant to pay off your existing consumer debts. That means if you have personal debts, credit card debts, etc., you can clear all these debts with this single loan.
The idea behind refinancing is that you get better terms on a single loan than your collective debts, such as lower overall costs, lower effective interest rates, longer repayment periods, etc. People take out these loans to better manage their finances and consolidate all their debts into a single debt. You can visit https://besterefinansiering.no/refinansiering-på-dagen to learn tips to get rid of credit card debts. Furthermore, refinancing allows you to save money that you would have spent servicing the multiple loans you owe.
What Makes Refinancing on the Day Possible
You can attest that getting loans in the past used to be stressful, as you needed to go to the bank and fill out several forms while they assessed your ability to repay the loan. The outcome is you might get the loan with a high interest rate or be required to provide collateral. In the worst-case scenario, your application is rejected.
However, securing a loan from lenders is now easy thanks to improvements in technology. So, we can say technology is a factor that has made getting this type of credit possible. One very important technology that enables Norwegian residents to secure credit such as this BankID. This identification app can be installed on your mobile phone.
When you apply for a loan via your mobile phone, the installed BankID app on your phone will allow the bank to confirm that you are who you claim to be. Furthermore, BankID allows you to sign the bank agreement from the comfort of your home. This makes it easy for you to receive the credit on the same day and sometimes a few minutes after you apply.
Technology has made it easy for banks to easily run a background check on an applicant. The process is fast and allows the lender to assess your financial capacity and retrieve your credit score. The great thing about this process is that the information is always updated, which means that the bank is working with real-time information about your financial situation to help them make the best decisions about whether to lend you the money or not.
When is the Money Disbursed After You Apply
The appeal of this loan is that you can get it the same day you apply once the bank approves it. However, some factors determine how fast you get the money which we’ll reveal in this section. Yet, it’s crucial that you understand that sometimes the money won’t be sent into your account on the same day. While the disbursement might be delayed for some reason, the bank is obligated to communicate with you after you send the application.
They’ll let you know when the money will be sent. Even when the money is delayed, you’ll get the money within three days. So, what can you do to ensure the money is disbursed faster? Here are two things you can do:
- Send Your Application Early in the Morning: Taking this action ensures that you meet up with the bank’s daily transfer deadline. Almost all banks have a deadline each day whereby they can make transfers. Any transaction that occurs after that time will be done the next day.
Furthermore, applying early in the morning allows the bank staff to properly assess your application. If you send it in late, they’ll have to attend to the application of those who sent theirs early. Once they can’t meet up with your assessment on the same day before the end of the work, they’ll have to attend to it the next day
- Apply at your Bank: One tip that people might not be aware of is that your bank is more likely to loan you money than a bank you don’t have an account with. If you choose to refinance from your bank, they can easily send the money to your account since you have a relationship with them already and they are aware of your financial situation. Besides, they don’t have to go through any other channel, they can just send the money directly to your account.
However, it is always necessary to send your application to other banks in addition to your bank. This is necessary because you might get a better offer from other banks. All you need to do is compare all the offers and then choose the one that has the best terms. After all, if the disbursement is delayed, it won’t exceed three days.
How Refinancing on the Day Applications are Assessed by Lenders
When you apply for any type of credit including this type, lenders are mandated to treat you as an individual. What that means is that there are no flat loan terms for everybody. Instead, the bank must assess your application individually to determine whether you can repay the loan or not.
This assessment is usually very fast thanks to the BankID and other information available at their disposal which they can gather quickly and automatically via electronic means. You can click here to learn more about BankID. The bank will then find out how much you are currently owing, your income, and how faithful you have been in the past regarding loan repayment.
The following factors determine whether you’ll get a loan or not during the assessment period:
- If your current debt is five times higher than your annual income, you won’t be given the loan. Although this applies to all types of loans, some banks might waive this off when you want to refinance.
- If your credit score is low, you might be offered an amount lower than what you applied for or they reject the application.
- If you don’t have a steady income, the application will be rejected.
- If you have an active debt collection case or payment notice, you might not get the loan.
Securing Refinancing on the Day with Payment Note
While payment notes might prevent you from assessing a consolidation credit, you might still be given an offer. Not every bank does this, but there are quite a number of them who do. However, you have to provide a real estate collateral or a guarantor. Some banks might even require both.
Because the bank will have to review the documents of the property to confirm that it belongs to you and determine that the guarantor is reliable, the assessment might linger for some days. That means you can’t get the money on the same day you apply. Given your financial situation, all you can do is wait for the approval of the loan.
Conclusion
Refinancing on the day allows you to borrow money and receive it in your account on the same day of applying to service all your consumer debts. To ensure this is possible, you must have BankID to enable the lender to assess your financial status to determine whether you are creditworthy or not. Applying early in the morning and to your bank are two tips that will ensure you get the money disbursed on the same day.
To refinance on the day, there are steps to follow. First, you need to determine the amount you want to borrow. Secondly, have all the necessary documentation and information ready. Finally, confirm that you are creditworthy. Finally, send your application and expect the money in your account that same day.
