A new car, a dream vacation, a new camper, there are many situations in which you need more money than you have. In that case, borrowing money can be a good option. What should you look out for when you take out a loan?
Borrow for which spending purpose
Depending on your spending objective, you can determine which type of loan is most suitable for you. For example, do you need money for a new car? You can finance your car with a loan from the bank or with a car loan through the dealer. In addition, that nice dealer would like to help you finance the purchase. But in that case, you often pay a higher interest. A loan from the bank is usually cheaper.
Loan forms: personal payday loan or revolving credit?
Do you want to borrow money for a major purchase? And know in advance how much you pay per month in interest and repayment? Then a personal payday loan a good choice. With a personal payday loan you know exactly what you pay per month in interest and repayment. You borrow with a fixed interest rate during the entire term and you pay a fixed amount every month. Do you want to be able to withdraw more flexibility and money when you need it? Then offers a revolving credit outcome.
Borrow money with your credit card
It is very tempting. With a credit card you can easily make purchases and only pay them back later. That is actually a way of borrowing money. You can also repay the credit card bill in installments. In that case you do pay interest on the outstanding balance.
The interest rate is often very high and is around 14 percent. So do you need some extra money for unexpected expenses? Then a personal payday loan is a better and cheaper option.
Compare providers and interest
Interest rates differ greatly per lender. It is therefore smart to compare interest rates well in advance.
Compare the interest rates
But comparing providers and rates does not say everything. With about half of all personal payday loans and revolving loans, the actual interest rate only becomes clear after a quote has been requested, according to recent research by-product comparator. The amount of interest is determined on the basis of a personal risk profile. So depending on your personal situation.