Do you want to take out an affordable or affordable loan?
Then it is important to find the lowest interest , among other things.
But there are more factors at play, such as the term, the loan type and additional costs.
We explain this to you below.
Nowadays you hear and read it everywhere in advertisements that have something to do with loans or credits: borrowing money costs money . That's right, but if you consciously choose to borrow, you can still save a lot of costs if you inform yourself well which credit suits you best.
We must first make an important distinction: if you want to borrow an amount between $ 100 and $ 2000, then you end up with a so-called mini loan . These are loans that you typically take out for a short period and preferably through a large international party that specializes in this. In the Netherlands you can contact Money Now . (The only other (small) providers of this is Savings Hand )
They offer such loans without a BKR test, and you can request them in 5 minutes without documents or payslip. You only need your ID, so a passport or ID card. It can even be on your account within 24 hours!
Interest costs are kept within limits because the terms of the loans are short. This is in comparison with loan types that have terms of several years, even if they have a lower interest rate.
You should mainly use this form to bridge a number of weeks or months until you know that you can certainly pay it off, for example because your holiday pay or end-of-year bonus is coming. The term depends on the amount that you borrow and sometimes you can make a choice yourself. The minimum is 15 days and a maximum of 124 days, where you pay off in equal installments of 31 days from 62 days.
For example , if you borrow $ 600 and pay this off after 45 days in one installment, the interest cost is effectively $ 7.00
But if you borrow the double, namely $ 1200, you can choose from terms of 62, 93 or 124 days with 2, 3 or 4 terms. The interest that you have to pay is $ 10.54 or $ 13.95 or $ 17.36 respectively according to the term
As soon as you want to borrow higher amounts, say $ 2,500 to $ 75,000 (although many providers only start at $ 5,000), you will have to look beyond a mini loan. And even then you keep encountering everywhere that borrowing money costs money. The main reason that people want to warn about the consequences of borrowing in this way is because of the costs involved. You often take out an obligation for several years and if you cannot fulfill it, it leads to major problems.
That is why it is very important to find the lowest possible interest rate . This saves you thousands of US dollars with larger loans! In the overview below you can see real-time / live the current best interest deals. You can click through to the provider for more information or to apply online. It is also possible to transfer an existing loan.
Click on 'all loan interest' to view more interest rates and also to compare specifically on, for example, the desired loan type (personal loan versus revolving credit, we will tell you more about it later). You can also specifically compare car financing or a loan for a renovation.
You have to pay the interest you pay every year. After all, it is a percentage on an annual basis that you agree on. Conversely, this means that if you take out a loan with a shorter term, you will have to pay less interest in absolute terms. But then you have to make a faster repayment and therefore pay a higher monthly amount.
You often see that lenders and banks aim for a longer term. Of course, they earn more money themselves and reduce the risk that you cannot pay. Be aware of this and negotiate if you wish. It saves you a lot of money at the end of the ride.
This is therefore also an advantage of the mini loan , because you always have shorter terms and can even pay off earlier to save interest.
Always pay attention to the fine print with financial products. This is certainly also important for loans / credits. For example, are there additional costs or additional conditions? Costs for service, administration, fines for earlier repayments, warranty, etc.
Some loans may also oblige you to open a checking account with a specific provider or there are transaction costs for paying out a loan sum. Yet these should all be included in the APR, or annual cost percentage . This is a percentage that must be communicated including all costs and with which you can easily compare providers.
The type of loan you choose depends on many factors and also makes a big difference to the possible total costs. Basically there are two most commonly used shapes that you will probably choose:
Click on the link for more detailed explanation, advantages and disadvantages.
1. Personal loan . This form has a fixed term and fixed interest. This provides clarity and is therefore often used. For example for the purchase of a car or caravan.
2. Revolving credit . The interest here is variable, but you only pay it on the amount that you have actually withdrawn. You can decide for yourself how much to withdraw and when, and you can always make extra repayments in the meantime.
In principle, not one of these two forms is cheaper, it just depends on what you need it for and how you deal with it yourself. For some loan purposes you are quickly connected to a certain form.
If it is an option for you, you can be cheaper with a revolving credit by being smart with the money. However, in practice you often see that people take longer to repay, because the term is not fixed and taking a little extra is too tempting. This form is in reality more expensive.
Would you rather have a specialist take a look? That can be a good plan. They often know just a little more and may find it easier to find the cheapest loan for your plan.
Credit Group USA is the right option for this, a Dutch expert who has been doing this for years. They will always find the best deal for you. You can at least request a quote for free and without obligation, it costs you nothing and you can easily compare the result with the interest rates found in your own comparison.