Government Agency Loans With Cession of the Fifth: How They Work, Guide

Thanks to Government Agency loans with assignment of one fifth, workers and public pensioners can obtain credit at subsidized rates. But what are these loans, how do they work, what rates do they offer and above all how to request them? Let’s review all the answers.

Government Agency loans: how the assignment of the fifth works

Government Agency loans: how the assignment of the fifth works

The Government Agency Loans with assignment of the fifth are actually loans granted by Social Institute, given that Government Agency was abolished at the beginning of 2012. In fact, Social Institute is the new reference social security institution for public workers and pensioners.

Loans on assignment of the fifth involve an automatic repayment process, characterized by an installment that cannot exceed the maximum limit of 1/5 of the value of the monthly allowance, intended as a salary or pension.

Multi-year Government Agency loans and secured loans

Multi-year Government Agency loans and secured loans

What are Government Agency loans with assignment of the fifth? This category includes two types of products, direct multi-year loans and multi-year guaranteed loans. Direct multi-year courses are provided only for personal needs that fall within the purposes set out in the Social Institute Regulation (many options are covered, from car purchase to purchase of the first home).

The beneficiaries are members of the Unified Management of credit and social benefits who have:

  • at least four years of service seniority;
  • at least four years of contributions paid to the Unified Management;
  • open-ended or fixed-term contract lasting at least three years.

Throughout the repayment period, the employment contract must be valid and the severance indemnity must be provided as a guarantee of reimbursement (for temporary workers).

Government Agency 2017 loan rates

Government Agency 2017 loan rates

The options in terms of duration are two: five-year or ten-year, we are talking about 60 or 120 monthly installments. As far as the rate is concerned, we find an annual nominal rate which corresponds to 3.50%. The beneficiary will also have to bear administrative costs, for 0.50%, and risk fund premium.

The request for funding must be sent using the online services of the Social Institute portal, in particular the service ” Multi-year Loans web applications ” will be used.

If the application is sent by workers on duty, it must be sent in collaboration with the reference administration. If, on the other hand, the applicant is a pensioner, the request must be sent directly using the reserved area of ​​the Social Institute website (possession of the PIN issued by the social security institution is essential).

Secured multi-year loans: what they offer

Secured multi-year loans: what they offer

The multi-year guaranteed loans are not granted by Social Institute but by banks or financial institutions that have defined an agreement with the social security institution. Therefore, the lending institutions determine the interest rate applied to the product.

Also in this case we are talking about Government Agency loans with assignment of the fifth with structured repayment in five or ten years. The applicant must provide the application in four copies to the reference administration.

Together with the application, a medical certificate of healthy physical constitution will be attached.

Record number of credit card cancellations in banks in Norway

Earlier this year, Finance Minister Siv Jensen tightened the requirements for banks offering consumer loans through new regulations regulating the rules for processing applications.

Banks can grant loans only to those clients who have sufficient earnings to repay the loan within 5 years. The total customer debt cannot exceed five times the annual income.

Debt Register

The next step is the new debt register, Credit register, introduced on July 1. The debt register does not provide a full debt review but contains a list of cash loans and credit cards that applicants for a new loan have. To date, banks have obtained information on the total amount of debt from Good Finance. The problem, however, is that the debts incurred this year are not visible on the tax return, and if the borrower does not inform the bank about new debts himself, he is able to cheat the bank’s verification.

We received several loan applications, which at first glance seemed transparent, but checking the debt register showed a greater consumer debt than as specified in the applications. These requests were rejected – said Kai-Morten Terning, Communications Manager at Bank Norwegian, in an interview for E24.

Information about debts in the Credit register is updated daily to prevent borrowers from hiding their debts from the bank.

What happens in the register when the debt is repaid?

bank

After paying off the debt, information about it is removed from the Credit register. However, it should be remembered that after paying off the credit card or cash loan, information on debts on Good Finance will still be visible to banks until they receive a new Good Finance in the next tax year.

The loan balance will show the number zero, but the interest paid on the loan, for which the borrower is entitled to a tax refund, will still leave a mark on the debt.

Customers quickly get rid of credit cards

money

Regulatory changes mean that all consumer credit granted – including the unused credit card limit – now counts when calculating the debt ratio. High levels of debt can cause problems in getting a new loan.

Below: An example of a debt report downloaded from the Credit register. The report shows 4 credit cards with an unused limit that affects the total amount of debt.

We have seen a clear trend where customers contact banks themselves to cancel credit cards or lower the card’s amount limit, ‘said Terning. According to the manager, the debt register increased consumer awareness and led people to take the lead over their debts. Interest in refinancing loans has also grown, which allows all debts to be transferred to one bank. In practice, this means taking another loan that will cover your debts. When paying off debt, creditworthiness is developed, which is why you can count on better conditions and lower interest rates.

The aim of all introduced regulations is to reduce the risk to the Norwegian economy. According to the Ministry of Finance, historically high household debt is one of the things that make the Norwegian economy the most vulnerable.

6 guaranteed rights for every credit card holder

At credit card companies, the money does not always have the same performance. Several laws exist that protect consumer rights with credit cards. Exercise your rights with your credit card. You never know when to remind a credit card company to follow the law.

 

Make unbiased decisions when applying for new loans

Make unbiased decisions when applying for new loans

When you apply for credit, credit card issuers cannot discriminate against you because of your gender, race, religion, nationality, age, marital status or whether you are receiving public support.

The credit card issuer can deny your credit card application if you do not meet the legal age of a credit card forever. Credit card companies cannot deny your credit card application because they receive public support and they have let public support included in your income.

Credit card companies will tell you the result of your credit card application within 30 days. If your application is rejected, she must tell you why and give 60 days to find out why your application was rejected. You are also eligible for a free credit score if your credit card application is denied or if you are approved but on less favorable terms.

 

Accurate and timely credit card statements

No liability for unauthorized credit card fees

Credit cards have a bill at least 21 days before the due date, enough time to mail your payment on time and to take advantage of the grace period if you have one. Your billing includes credits and fees to your account since the last billing. It will also match your minimum payment, the due date, and some information about late payments, and the impact of making the minimum payment.

You have the right to contest billing errors. If your credit card statement has a mistake, you usually have 60 days to contest the mistake with the credit card company. Although many credit card issuers take a dispute over the phone, you must make your dispute in writing to ensure your rights are fully protected by law.

 

No liability for unauthorized credit card fees

If your credit card is used without your consent, you can reduce your liability for the cost by taking certain actions. First of all, you should be missing your credit card report as soon as possible. You won’t be responsible for any of the unauthorized fees if you report your credit card stolen before the thief gets a chance to use it, but you could be liable up to $ 50 if you report the loss late. You are not responsible at all for using your credit card number only if you still have the credit card in your possession.

 

The ability to view and correct your credit report

Your credit card issuer can report details about your credit card and your payment history to a credit bureau, also called a credit bureau or credit bureau. You have the right to view your credit report and make sure that the information on your credit card report is accurate. You can dispute any incorrect information with the credit bureau or with the credit card company.

 

Advance notice of any change to your credit card contract

Advance notice of any change to your credit card contract

Credit card companies sometimes make major changes to the credit card contract, such as increasing your interest rate or introducing a new annual fee. You have the right to reject these changes and withdraw your credit card under the current conditions. The credit card issuer must send your a 45-day pre-notification before a significant change takes effect. They must also give you instructions on how to opt-out of these changes.

 

How To Deal With a Violation of Your Credit Card Holder’s Rights

You can file a complaint against a credit card issuer that violates your rights with the appropriate regulatory agency. The Consumer Financial Protection Bureau is responsible for enforcing laws for credit card companies. For now, complaints about debt collectors and credit bureaus continue to be sent to the Federal Trade Commission. Several different agencies regulate credit card companies, such as the National Credit Union Administration. You can also file a complaint with these agencies.

Do student loans go to my credit report?

Student loans can have a positive or negative impact on credit

Yes, your student loans appear on your credit report and are credited to your credit rating, just like all other loans. This means that they can have a positive effect on your credit rating if you make payments immediately, or a negative effect if you miss payments or go to the default.

Student loan debt 

money

If you take out a reasonable amount of student loan debt and make up for it after graduation, your credit report will reflect that you are a conscientious lender who is good at financial management.

It might make you look attractive when you need to borrow more money in the future.

On the other hand, not paying your student loans on time, allowing your student loans to fall into collections or not paying student loans, will also go to your credit report and will definitely have an adverse effect on your credit score.

Prevent student loans from negatively affecting credit

money

Needless to say, it’s crucial to keep your student loan in good shape, as it can come back to haunt you when you try to buy your next car, your first home, or even when applying for some jobs. Here are some other points to keep in mind how student loans can affect your credit:

  • Buying for private student loans can affect your credit. Applying for federal student loans does not appear on your credit report until you begin credit. But if you still need extra funds outside of federal student loans to pay for your college expenses, you may decide to buy private student loans. These apps are likely to appear on your credit and look bad if it looks like you are applying for too many lenders. Manage this by first completing your research, before providing any specific applications that are likely to be reported.
  • Credits appear on your credit report even when they are deferred. For the record, your student loans will typically be displayed on your credit report even while you are still in college and still technically in deferral. However, this usually does not have a dramatic effect on your ability to obtain non-educational loans because many lenders are more interested in your current monthly payment obligations, which are zero while you are still in school, as opposed to your actual loans.

Dealing with Student Loans After College

cash

It is not uncommon for you to have trouble paying off your loans when you are out of school and entering the workforce (or trying to do so). Here are some tactics that can help you deal with high student balances:

  • Delays can help if you are unable to make a student loan payment. Review federal student loan payment options carefully as they may change to reflect your earning power after graduation. Depending on your personal situation, you may be entitled to some kind of temporary delay or tolerance to lighten the load. Deferring a loan will allow you to suspend payments for a period of time or temporarily reduce payments. Postponing or withholding does not hurt your credit score, as it is considered “paid as agreed”. You may also want to use one of the income-based student loan repayment options that are more sensitive to the amount of money you have available.
  • Credit consolidation can help. If you have taken out both federal and private student loans during your college career, this can be confusing for you and may look messy on your credit report. You may also be more able to miss a payment, simply because different loans have different payment dates and payment amounts. It may be helpful to use a direct consolidation loan for your federal student loans so you only have one monthly payment.
  • Ignoring your credits does not improve your situation. If you have experience with financial difficulties, trying to deal with student loans feels like another burden on your shoulders. It looks like it would be easier to crawl into a hole and hide, but that really just ends up making things worse. Late payments start appearing on your credit report and limit your ability to make alternative payment methods. If you are fully in charge of your federal student loans, this will leave a whole host of negative actions and make your life even more miserable. A student loan default can remain on your credit report for seven years. The government can pay your salary and even withhold any federal income tax you may have been counting on to get out of this situation.