If you are going to take out an online loan instead of going to the traditional bank where you have to fill in endless papers, you will find that with a loan that you take out online you can save a lot on interest. Not only does interest play a role, but the conditions are also generally more lenient and complicated contracts are often omitted. Nowadays you can take out all conceivable loans online, revolving credit, mini-loan, personal loan, a loan for a new car and even to apply for a mortgage you no longer have to leave the house when it comes to applying.
Take out an online loan
To start right away with the most popular loan form at the moment, the mini loan, or the advance on your salary. It is a popular credit which has gained a lot of popularity in almost all of Europe in recent years. Unfortunately, with all kinds of different rules per country, it is arranged fairly neatly in the Netherlands; this is mainly due to the fact that the rules regarding borrowing a small amount are clearly laid down. For example, no more interest may be charged than the legally established maximum, any costs must also be clearly stated with the application, so that no nasty surprises can arise. You take out a mini loan from € 50, with a maximum amount of € 1500. No bkr check is carried out, so you can borrow money without a bkr with this credit. There are 2 providers active in the Netherlands, Ferratum and Saldodipje.
Tips when applying
If you are ready to take a serious look at your application, then I can provide you with some tips that relate to the loan forms discussed in this article. With some you can save money and with others you can take advantage by choosing a lower interest rate or better conditions. What better conditions are due to your personal circumstances, this is different for every consumer. I will also show some examples of how to start an application. You will see from step-by-step examples that this simplifies the process considerably.
Prevent your application from being rejected
A problem that regularly occurs is that you are going to apply for a new loan while there are other, older loans open (which are repaid properly). A new lender will be a bit hesitant about this because it has the task of protecting you against over-crediting. You can prevent a rejection by indicating to the new lender that you want to merge all your previous credits into one new credit. This applies to all forms of borrowing that are passed on to the BKR. So also the bank’s redundancy, outstanding credit debts and other payment obligations. This is all paid off with a new credit and merged into a new loan.
Make sure your affairs are in good order
Because the new lender does not know you yet, he will want to know the hat and the edge. Therefore, make sure you communicate well and send papers that are requested to them quickly. This concerns all details of outstanding loans and of course also information about your personal circumstances. This includes pay slips, bank statements, statements from your credit card or other papers that relate to payments. If you have this all in order, you can send it quickly when you inquire.
Request multiple quotes
There is little to compare with requesting just 1 quote. Request therefore at least 3 quotes so that you can not only compare the conditions, but also the interest, the duration and whether there is a possibility to skip a monthly repayment without penalty. Companies will always have to comply with the law when it comes to interest rates, yet you see differences in the bids that can ensure that you can actually save. Remember that only 1% lower interest rates will save a sip on a drink in your monthly costs.
Check whether the interest is deductible
Are you going to borrow to renovate in or around your house? Now it may be that your interest on your credit is deductible from your income for the tax. A loan for the purchase of solar panels may also be eligible. The rules in this regard are strict, so read carefully which conditions you must meet before you start using them.
Pay attention to penalty-free accelerated repayments
It can happen that during the term of your loan you will be more comfortable with cash. Use this to reduce the amount of your loan so that your monthly payments will be lower. With a revolving credit it is never a problem to do this earlier, so there is never any question of penalty interest. In the case of a personal loan, on the other hand, the problem does indeed play a role and it may happen that you have to pay a fine in the case of accelerated repayment. In the conditions of your quotation you can read how the various providers deal with this.
Borrow with advice or without?
Online you often have the choice whether you want advice when applying for a loan. You can use this, sometimes costs are charged, but often this is a free service. Prepare yourself for extensive questionnaires that you must complete. If you believe that you have mastered the material then you can also choose not to seek advice, we are talking about execution only. When in doubt, you better opt for advice. But on the other hand, the advice offered is not always reliable and you should do good research yourself. But the choice is yours.
Be careful with borrowing too much
It seems tempting to borrow more than you actually need. This is more common with a revolving credit than with a personal loan. It works as follows. If you are going to compare the interest for different amounts, you will see that when the amount gets higher, the interest will fall considerably. This can really save percentages and is therefore very attractive. Suppose you were looking for a revolving credit of € 10,000, but you see that with an amount of € 25,000 the interest rate falls by no less than 3%. Now you can say that you are only going to use the € 10,000 and not the rest. This may be a good solution, but you must be firmly in your shoes to avoid being tempted to use the remaining amount.
Do you have savings?
If you have savings and still want to take out a loan, then it is time to scrape yourself behind the ears. This is almost always a bad idea. In addition, you use your own savings more economically than with a loan because a sum of money that you borrow is spread out over several years and therefore actually ‘cheaper’. With the exception of exceptions, you should not start with that.
Different loan forms
There are various forms of borrowing online, a personal loan, a revolving credit, a second mortgage, a bank overdraft, a credit card, a hire purchase, a flash loan, also called a mini loan, a loyalty card, goods from a mail order company, a mortgage. The most expensive forms are the credit card, overdraft and mail order company. If you always pay with your credit card everything you spent in the previous month, you do not have to pay interest. The most expensive types of loans have a high interest rate, but never higher than the legally established maximum of 14% on an annual basis. All the previous examples are generally 10% more expensive than when you view a cheap credit. Different rules apply to buying a new car.
The revolving credit is also one of the most popular loans in the Netherlands. The advantage of this loan form is that you have money in hand that is deposited into a separate account, if you do not use it immediately, then you do not have to pay interest either. You can request a revolving credit from € 2,500, by the way, the most popular amount to borrow is twice as much, namely revolving credit € 10,000. Many people find this a fine amount because it is approved in most cases, because you have a normal job with an average income of around € 1400 net per month, then applying for this amount is no problem.
Different interest rates
When you search the internet for the different interest rates that are charged, you will see that there is a nice difference when applying online or applying at a regular bank. Now you will think that an interest rate difference of half a percent is not that interesting, but you can care less about this on a monthly basis. Of course especially when applying for a mortgage, which you have been tied to for many decades and therefore suffer from a slightly higher interest rate for a long time.
With the current low interest rate it is advisable to check whether you do not already pay too much interest on your existing loans. If you closed these years ago, it is obvious that you now pay too much interest. Then see if you can transfer your expensive loan from another lender. Often they offer special offers to not only take over your expensive loan, but also to merge existing loans so that you end up paying a lower interest, since with higher amounts, the interest will fall correspondingly.
Calculate your loan
Are you curious about what amount you are initially eligible for? Then you can make an online calculation. This is done in a particularly easy way and you do not have to enter any personal details. You answer a number of questions and you immediately see on your screen which maximum amount you can request. With this you can choose a more targeted offer that matches the height of your request. You can see that Geldshop has such a calculation tool on its website.