Taking out a loan has often happened that way. However, it appears that many people are not happy with the closed loan afterwards.
Because an informed person counts for 2, we have listed 10 loan tips below.
1. Make an income / expenses overview before you start borrowing
When you take out a loan, you will be faced with interest charges and repayments. You would be wise to make an overview of your income and expenses beforehand so that you can get a good picture of whether you can and want to bear the extra costs of the loan.
2. Do not borrow if you have savings or have time to save
It seems obvious, but in practice it appears that many people who take out a loan have savings. Often people want to keep their savings “behind the hand” or people do not realize that they borrow. In particular, the latter often happens when there is a red overdraft on a payment account, buying on payment or using a credit card. The interest you pay on a loan is often much and much higher than the interest you receive on your savings. Borrowing when you have access to savings is therefore often very unwise.
3. Avoid standing red
Many people are often red on a payment account. This is often a very expensive form of borrowing. Interest rates up to 16% are no exception. Therefore, be very careful with red.
4. Be careful when buying on installments and deferred payments
“Buy now, pay in 2 years”. “Buy now, pay in 50 installments”. Especially in the purchase of white goods, music equipment, furniture and cars loan constructions are often offered. These constructions sound very nice, but it is not uncommon for an accurate analysis that you are going to pay a hefty interest. Therefore, be careful when buying on installment (and similar constructions).
5. Prevent arrears at the BKR
As described on the BKR page, you would be wise to avoid catching up with scrambling codes. Pay your obligations on time. It would be a shame if a late payment of a dress at the Wehkamp means that you will not be eligible for a mortgage years later.
6. Never borrow longer than the life of the purchase
For many products the lifespan is limited. Make sure you have paid off the loan within this period. It is very annoying when you still have to pay interest and repayment if you have stopped using the product for which you have taken out the loan.
7. Do not borrow more than you need
Sometimes you can get a higher loan from a lender than you need. Many people therefore make use of that extra space. This can lead to irresponsibly high monthly payments.
8. Look out for unnecessary insurance policies
With many lenders, when you take out a loan, you immediately receive a life insurance policy and / or monthly insurance. Although the hedging of risks must certainly be considered in many situations, we advise you to be very careful with these types of offers. The insurance policies are often unnecessary and very expensive. If you want to cover risks, it is more interesting in most situations to take out the insurance separately from the loan.
9. Only connect a loan that you understand
Make sure you know exactly what you are going to pay and what you will receive in return.
10. Comparison and shopping pays off!
A large number of lenders are active in the Netherlands. Almost every lender also offers several credit options. There are major differences between the various suppliers and products in terms of product conditions and rates. You would be wise to compare the different options with each other before you take out a loan.