Top 10 tips for borrowing money wisely
For many, the subject of borrowing money is unknown territory. Tips can therefore contribute to the awareness of the important points that play a role in taking out a sensible loan. For this we have collected the top 10 money lending tips.
Pay attention! Borrowing money costs (unnecessary) money
The first and most obvious tip is that borrowing money is not at all wise. It is a lot smarter and, above all, cheaper to save money instead of borrowing it. In this way you receive interest instead of having to pay for a loan. Therefore always try to save enough in advance and see borrowing money as a last option.
Choose the loan that suits you.
To prevent unnecessary temptations – such as, for example, re-taking credit already repaid – it is wise to choose the loan that best suits your needs. Many consumers opt for the security of the personal loan while others choose the flexible revolving credit. Inform well in advance about the various loans to get a picture of what you would like and try to avoid unnecessary bells and whistles.
Comparing pays off. This applies to both the providers and the loans and rates. You can compare the different lenders based on your own findings and / or based on experiences that are shared by others. On LenenMetVerstand.nl, lenders are assessed on the following points: Interest Rate, Conditions, Customer Orientation, Information and Helpful.
Loans are also often given the tip to make a good comparison. After all, a lender often offers a loan with a higher or lower interest rate and with better or worse conditions than the competitor. You can compare loans by requesting multiple free and non-binding quotes. Nowadays, comparing quotes takes less time, because quotes can often be requested online and are also sent electronically to your e-mail address.
Interest is an important part of borrowing money. That’s why many websites also give the tip to compare interest rates. At LenenMetVerstand.nl you can compare the interest on dozens of personal loans and revolving loans. However, please note that the rates shown are the starting rates that the providers use. To find out which interest rate matches your risk profile, you must request a quote.
Beware of additional costs
Tying and usury policies have been largely eliminated. However, some providers will always keep trying to earn extra money from a customer. This can be achieved by demanding high consultancy costs or by offering unnecessary and expensive insurance policies. Financial service providers are required to offer transparency about the costs of services and products and make good use of any commissions they receive.
Make sure that you can bear the monthly costs of the loan
For a loan or credit, an amount must be paid monthly for repayment and interest. In the meantime, your income may increase, but it may also decrease. In the latter case, it is important that you can continue to bear the monthly costs of your loan. It is therefore wise to take this into account in advance. You can also consider a monthly expense protector to cover yourself and your loved ones against death, disability and / or unemployment.
Check the form of the loan
The interest that you have to pay for a loan largely determines the costs of financing. That is why it is not a superfluous luxury to know whether you have to pay a fixed or variable interest rate. It is also wise to check whether you would pay an entry interest. The so-called entry interest rate is sometimes used to attract new customers with an extra competitive interest rate, but the provider can then quickly raise it.
Do not borrow money with a BKR backlog
The Credit Registration Office (BKR) in Tiel is responsible for registering the payment behavior of consumers with, among other things, a Gsm subscription or a loan. Consumers who incur a payment arrears cannot, as long as the arrears apply, borrow money from the normal bank. In this way, consumers are protected against themselves because they cannot incur new debts.