If you want to borrow cheap money, you have to look for a matching loan.
Would you like to buy a car, for example? Then do not close an ongoing loan but a personal loan. The personal loan has a fixed term and you can adjust this to the (economic) useful life of the vehicle. This will prevent you from being stuck with a loan later, while the car in question has already been depreciated over a long period of time ….
When personal loan and when ongoing loan?
You can also make best use of the personal loan for kitchen financing. In general, you always take out a personal loan for a purchase of which you know the total costs. Make use of a revolving loan if the total costs can not be estimated well in advance.
This is the case, for example, during a renovation or renovation. Sometimes you can also save money by choosing a very specific loan such as a sustainability loan or a green loan.
Closing the loan at the right time
Do you need money soon but also not in a hurry? Then you might be able to borrow cheaper in the future than at the moment. Nowadays the borrowing rates are reasonably stable. It is therefore of little use to postpone borrowing for a long time, in the hope that interest rates will fall even further. That is, however, the case with the personal loan.
If you want to take out a revolving loan, then it makes a lot of sense to keep an eye on the interest rates for a number of weeks or months and then “strike” at the right time! A small difference of 0.2% interest can make a lot of difference over your total loan amount!
Your personal and financial circumstances also weigh
Not only can you borrow cheaper by choosing a consumer that fits your spending goal. You can also save money by monitoring current interest rates and taking out a loan at the right time. But your personal and financial situation also plays a very prominent role for lenders in determining lending rates.
For example, your neighbor may pay less than you for the same loan with the same conditions from the same lender. How is that? Lenders determine the level of interest by looking at your situation. They try to estimate the chances that you will redeem the loan in the future.
The level of the risk surcharge is determined on the basis of the information that is known about you. That is also the reason why you have to fill in so much data when applying for a loan. You pay higher interest if one or more of the following applies to your situation:
- You are 50 years or older;
- You have a low income;
- You live in a neighborhood that is not well-known (much vandalism / crime);
- You previously had a negative BKR registration;
- You are 21 to 25 years old;
- You are low educated.
Cheaper borrowing with short term
However, inexpensive money borrowing is partly in your hands. In general, for example, loans with a shorter term are cheaper than long-term loans. After all, you pay interest over a shorter period. A disadvantage, however, is that your monthly expenses will be higher. If there is little money left per month, it is therefore wiser to opt for a longer term.
Want to borrow even more advantageously? Make a small deposit!
Do you want to borrow even more profitable money? Then you could consider making a (small) down payment, provided your financial situation allows. This creates a lot of confidence with the bank or lender. They reward this behavior by adjusting interest rates in your favor.
Finally, it is important to compare loans with different providers. Of course, compare loans with the same conditions. Otherwise it makes little sense. You can easily and quickly find the cheapest loan on by comparing. Have you found a cheap loan? Then you can apply for it immediately!