If you are planning to make a big purchase like a car or when you need money for a renovation, borrowing money can be a godsend. You have different types of credit that you can take out for this and it is therefore useful to compare which suits your situation best.
Why do you want a loan?
Before you make the choice to borrow money, it is good to see what you exactly need the money for. Are you going to renovate but are you short of a few thousand euros short to tackle all at once or do you urgently need a new car because the previous one is broken? Always consider whether it is necessary to borrow money. Borrowing money costs money and can cause unpleasant situations.
When you want to buy a car, hire purchase can be an option. You make a deposit and solve the rest of the purchase amount in installments. The car will become your property after payment of all installments. You do not have to pay the whole amount at once, but if you default, the car will be reclaimed.
Personal loan or revolving credit
A personal loan or a revolving credit are borrowing forms that are most common among consumers. The personal loan is a fixed amount that you have to pay back in a fixed period. A revolving credit is a maximum amount that you can borrow and which you can use each time. Can you borrow up to 5000 euros, but do not you need it at once? Then you can choose to record a part first and then record the rest. The interest rate is lower when you redeem faster but is variable.
When you start borrowing, you must always read the conditions carefully before you take out the loan. Always pay attention to the following:
- Is the amount stated?
- What is the term of the loan?
- What is the level of interest?
- What are the repayment terms?
- What happens in case of late repayment?
Always look at the credibility of the lender before you make a choice. The AFM (Financial Markets Authority) can help you with this. They check all lenders for reliability and issue permits for this.
Save on your current personal loan and / or revolving credit
If you already have a personal loan and / or ongoing loan right now, you can easily save money via Consumind Finance. Our credit specialists will gladly help you reduce interest rates and / or shorten the term.