If you travel to Denmark to stay for a while for a temporary job or to live there permanently, and you find yourself in need of a loan, here are a few facts that you might want to know.
First of all the loan market in Denmark is pretty liberalized as you're used to in the U.S. for instance. You'll find that you can loan money in many many banks, and you'll find that the banks have very differentiated loan products for you to choose between.
The pricing of the loans i.e. the interest rates and the basic costs vary very much and you should know that most bankers in Denmark are in a position to bargain with you about the price of your loan. So you should act accordingly and always try to press the price as low as you can possibly get it. To put it bluntly, if you do not negotiate the price of your loan, you will find yourself and way too much for it. There are a few exceptions though, as a couple of banks in Denmark have opted for a a strict line of no negotiating prices. These banks are serious about their commitment, and you will find no way to negotiate those prices any lower.
Now, if you use to the conditions on the loan market of us, you'll find a significant difference in the way loan approval is done in Denmark compared to the U.S.. In Denmark there is nothing called credit ratings. So there's no need for you to max out your credit card every month in order to collect points for your credit rating. When your bank or your bank adviser to try to decide whether to approve your loan application or not it all comes down to an evaluation of your available assets (like property cars stocks and bonds) and the earnings they expect you to secure in the following months and years. (for this your job contract and the tax papers for the previous years will count as important documentation)
So basically you'll find a loan market in Denmark, where your ability to loan money actually corresponds with your ability to be able to pay it back.
RKI is a registry that lists all the people in Denmark who have not been able to honor their debt in the past. If you get listed in the registry, there's practically nothing you can do in order to secure yourself a loan. Only way out in that case is for you to pay back all your debt in order to remove yourself from the registry of RKI.
Using Google Translate to translate the web documents, of good sources for information about loans and Denmark like http://www.broker-laan.dk , you'll be able to find all the information you need including names and addresses an e-mail addresses for banks and also helpful forums in danish were you can be sure to get your question answered even if you ask it in English.
First of all the loan market in Denmark is pretty liberalized as you're used to in the U.S. for instance. You'll find that you can loan money in many many banks, and you'll find that the banks have very differentiated loan products for you to choose between.
The pricing of the loans i.e. the interest rates and the basic costs vary very much and you should know that most bankers in Denmark are in a position to bargain with you about the price of your loan. So you should act accordingly and always try to press the price as low as you can possibly get it. To put it bluntly, if you do not negotiate the price of your loan, you will find yourself and way too much for it. There are a few exceptions though, as a couple of banks in Denmark have opted for a a strict line of no negotiating prices. These banks are serious about their commitment, and you will find no way to negotiate those prices any lower.
Now, if you use to the conditions on the loan market of us, you'll find a significant difference in the way loan approval is done in Denmark compared to the U.S.. In Denmark there is nothing called credit ratings. So there's no need for you to max out your credit card every month in order to collect points for your credit rating. When your bank or your bank adviser to try to decide whether to approve your loan application or not it all comes down to an evaluation of your available assets (like property cars stocks and bonds) and the earnings they expect you to secure in the following months and years. (for this your job contract and the tax papers for the previous years will count as important documentation)
So basically you'll find a loan market in Denmark, where your ability to loan money actually corresponds with your ability to be able to pay it back.
RKI is a registry that lists all the people in Denmark who have not been able to honor their debt in the past. If you get listed in the registry, there's practically nothing you can do in order to secure yourself a loan. Only way out in that case is for you to pay back all your debt in order to remove yourself from the registry of RKI.
Using Google Translate to translate the web documents, of good sources for information about loans and Denmark like http://www.broker-laan.dk , you'll be able to find all the information you need including names and addresses an e-mail addresses for banks and also helpful forums in danish were you can be sure to get your question answered even if you ask it in English.
