Everyone has ever borrowed money.

Everyone has ever borrowed money.

 It often starts when you are a teenager: finally your favorite band comes to play in your village, and you must immediately arrange a card to see them live. Unfortunately, your pocket money has run out and it cannot wait until the following week, because then you will fish beside the net. You therefore go to your brother and ask if he can advance the money. This is actually a loan that you take out, because he wants the money back the week after. And luckily you don’t have to pay borrowing costs or interest.

About 10 years later your situation has changed considerably. You have a job and you think it’s time for your own car, instead of always driving with your mate. Or maybe a sudden release pops up, but you’re a bit low on cash. However, a new washing machine or refrigerator is not a purchase that can wait for months. Because you are now over 18, you can request a loan from a bank or lender. In the meantime, you probably know that there are dozens of providers, each with their own rates. With whom can you take out the cheapest loan and what should you look out for?

Take out a loan

Take out a loan

The most important thing is that you do not get in trouble when you take out a loan. You must therefore first make a list with your monthly fixed costs; This includes not only your rent, water and electricity and food, but also, for example, the consumption for your car, insurance, sports club, hobbies, in short, everything that you cannot / will not give up. Also make sure you keep some margin for unforeseen expenses. You then deduct those costs from your monthly net income, and what you have left over could be used as a credit repayment.

To find the cheapest loan, look at the APR of banks and credit providers. The lower this is, the better for your portfolio. You can quickly see who has the lowest APR online and request a free quote by performing a simulation of your credit. You enter the loan amount and the term – the period you think you need to pay off the loan – and with a few clicks you know your monthly repayment. Read the conditions; sometimes a low rate is a boarding action, and that may still increase.

A short or longer term is also quite a decision, and depends on the loan amount. It is always better to pay off your loan as quickly as possible, so a short term is cheaper. But maybe you want to give yourself more space; in that case a longer duration may be better. The final borrowing costs may be higher, but you have to stop less for them. Whatever you decide, the cheapest loan is easy to find. Therefore, sit behind that laptop and compare the various offers. It will be done in a few minutes.

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