Cards that you do not use can be considered as a debt

Do you exchange petrol, furniture, data or a book, a hotel, a trip or a plane? Chances are you will be offered and you will have said yes to a credit card: There are 322 different cards that tempt you.

Chances are also that they are left unused.

It did not cost you five pounds until today. However, over the next six months, the unused credit on these cards will be counted in your debt.

– Often, a pair of credit cards is useless. If the credit limit of the four cards is 50,000 crowns, this pair will receive 200,000 less crowns in loans next year. I have only one tip: cut the cards that you do not use and report to the issuer that the credit needs to be removed, says general manager Ådne Skjelstad of the refinancing company . Lendo.

The reason is that the government's registered debt register will be in place before next summer.

recording should help save card debt, not just the loans you raise through banks and other financial companies.

Anders N. Kvam, consumer coordinator of the Danish Financial Supervisory Authority, confirms the case.

– When the bank reviews a loan application, in accordance with the Mortgage Regulation, all debts, including consumer loans, must be included in the credit rating. A good assessment of the client's ability to work therefore indicates that, as stated in the Consumer Loan Guidelines, it is the overall credit framework that forms the basis for credit cards and master plans. . This is what can become the total burden of the customer's debt, which is therefore crucial for his ability to work.

The credit limit

Such can those go shopping in life With different credit cards, be revealed.

Skjelstad says that the debt register is very good, even though it may make them lose less money: his company helps, among other things, people to refinance after getting lost in credit card debts. credit.

"Our employees stay seated all day and receive inquiries from people who need help because they have incurred excessive costs and interest rates because of their card debt." When the registry is created, banks and lenders will have a complete overview of the total debt, including that of the cards.

"But," he said, "we have discovered an unforeseen problem. The register must contain both credit limits and current balances. In practice, lenders must have a relationship with the credit framework you have. This means that unused credit limits on credit cards will appear as a bomb in the debt register: for many, this framework could reduce the mortgage lending capacity, even if the credit framework is unused.

114 billion

He says that their review shows the following:

• There are 322 different credit card offers in Norway.
• In total, we have 6.6 million credit cards. If we allocate it to 4.1 million people over 18, that gives 1.5 cards per capita.
• "When you know that there are many who do not have cards, the average is among those who have them, probably around two," Skjelstad says.
• Overall, credit cards have a total framework of NOK 165 billion. It is based on an average of 25,000 NOK per. map.
• We are actively using 51 billion out of 165 billion:
• The total unused credit limit is 114 billion.
• "This means that in Norwegian homes and portfolios, around NOK 114 billion is unused," says Skjelstad.

He says these are conservative estimates.

"Our customers have a credit limit of 40,000, but it is above average, so we're working at 25,000 crowns, and we think there's a need to ring the alarm because it could reduce the loan to borrowers who are "good" and do not use their credit cards, "Skjelstad said.

confirmed

Anders N. Kvam from the Danish FSA adds:

– It is true that, in accordance with the provisions of the law on debt information, it is necessary to record credit, credit and non-interest-bearing balances on credit cards, including credit cards. . This is important information for financial companies that will assign a credit rating to a loan applicant. The credit structure provides information on the total volume of loans that the client can receive.

If you have questions about the high number of cards, even if you do not use them, you may have negative results when you meet the bank about loans, DNB Vidar Dalsbø answers the following questions:

"Banks are mainly concerned with loans and loans already contracted as well as by the history of payments.

Dalsbø points out that a debt register can nevertheless have major consequences on the number of credit cards that the customer may be allowed to dispose of.

"With a debt registry, banks will have a better overall view of available credit from customers, which can affect banks' credit practices.

PS: Lendo belongs to Schibstedwho also owns VG.