Borrowing money is a necessity for you?
Need to borrow money? Then use these loan tips to find the best loan and not fall into the pitfalls. It may not always be the most ideal way to get money, but if you have to or need to borrow, use these 10 loan tips. These 10 tips will help you borrow responsibly. We give you the best tip first, save money and avoid having to borrow money while saving.
1. How much can you really borrow?
Take a good look at which monthly payments you can really carry. Of course, you can give up your 3rd side job to get a high loan, but realize that you will run into problems if you lose this side job.
Also take a look at the NIBUD site, which consumers want to learn to handle money responsibly.
2. Compare all loan types
There are various types of loans, be well informed about all the pros and cons. Sometimes a private loan can be interesting or a simple revolving credit with your own bank.
3. Compare all loan providers
As with many other (on-line) services, it pays off to compare loan types. In addition to comparing on-line loan providers, it is also interesting to ask your current bank to make an offer and compare it.
4. Note the maturity of the interest rate
A loan of 3%, 4% or some other incredibly low interest rate? Then pay extra attention, this is probably only before the start of the loan.
You may also have to purchase additional products as a life insurance policy.
5. Interim repayments can become an expensive affair
If you receive a quote, this must include a credit prospectus and a financial information leaflet. Read these fine print carefully, because what if you suddenly find yourself in a luxury situation and want to repay your loan in the meantime? This is usually possible, but at a hefty fine rate.
6. A loan without BKR assessment? Rather not!
The BKR (Bureau Credit Registration) in Tiel is there for a reason, if you are registered here negatively then you already have a debt. Think twice if not three times before you take out a loan while you are already negatively known to it. Checking your creditworthiness is not only in the interest of the bank, but also in your own interest.
7. Extra (compulsory) insurance often part of a cheap loan
Found a cheap loan, the right interest rates for the entire term? Then there is a chance that you must take out expensive insurance. Watch out with this, because lenders often earn back the cheap loan with, for example, too expensive life insurance.
8. Check the lender’s permit
It may sound bizarre, but there are lenders who are not so keen on Dutch law and grant loans without a proper license. On the website of the AFM (Financial Markets Authority) you can view the permits of lenders.
9. Be honest with potential amortization issues
Can you no longer repay the loan according to the agreed contract? Then ring the proverbial bell in time; NIBUD, the municipal department of Social Affairs or the Dutch Volkskrediet Association can help you further and, if necessary, refer you to a debt counseling or debt restructuring agency.
10. Cheap borrowing is and remains an illusion. If you consider that your money in a savings account can yield 4%, it is of course not realistic that you can borrow money for interest rates around this 4%.
Every loan that you borrow at this low interest rate will have to pay for itself in a different way for the lender.