Is your car broken? Would you like to buy a house? Or do you have other reasons why you need a lot of money quickly? One way to get a lot of money quickly is to borrow money. Nowadays, borrowing money is often done to be able to buy a house, we also know this as a mortgage. There are many people who have a loan. The most important thing is that you clearly know what you want to take out a loan for. Then you have to take a good look at all the loans so that you do not take out the wrong loan with, for example, a very high interest rate.
Can I take out a loan?
If you want to take out a loan it is important that you have an income, you cannot borrow much if you do not have this. In addition, it is important that you are not BKR registered and therefore not known as a defaulter. You will receive this registration if you do not meet your monthly obligations and if creditors have to wait long for their money. So always check first whether you can bear the monthly costs before you take out a loan. This can prevent you from becoming known to the bkr and that can have consequences in the future because you cannot borrow money again after such a registration.
Types of loans
There are different types of loans. This way you have the revolving credit; this gives you the option to withdraw money even though you no longer have credit on your card. That means that you go red. The interest on being in the red is relatively low and you can consider using this for emergencies such as a broken washing machine or something similar. The amount of your revolving credit is different and your income is determined to determine the amount.
It is also possible to take out a personal loan. This is a good way to borrow money when you need a larger amount of money to buy a car or start a business. The interest on this loan is fixed and the monthly repayment is often fixed. This loan is provided after approval because this also requires an income statement. The amount of your income determines the maximum loan amount.
Then there is the mortgage. A mortgage is one of the best known and most used loans. People who want a mortgage are planning to buy a house. Even with a mortgage, the amount is based on the amount of your income. The repayment is also in monthly fixed installments and sometimes with the option of free repayment on the right.
Then there is the possibility of a lease contract. Lease contracts are covered by a loan and are also referred to as a lease-purchase. This option is often used with cars. Here you pay a fixed amount each month and at the end of the term you pay a certain percentage of the entire value of the car, the car then ultimately becomes yours.
Financial undertakings are required to include a warning in advertisements for credit about the consequences of this credit. The purpose of this warning is to raise consumer awareness about the consequences of borrowing. Source: AFM
A credit card is also a form of borrowing. It actually works the same as a debit card, but you have to redeem the amount on your credit card once in a while. You also pay interest on a credit card. You can get different types of cards where the maximum loan amount differs. This amount also depends on your income.
Pupils can also take out a loan through a duo (service delivery department). The condition is that you attend school. After obtaining your diploma you can make an arrangement about paying back this loan. The interest is not very high and it can sometimes be very nice for a student to receive just a little extra so that you do not have to look for a side job but can focus entirely on school.
Does borrowing money have disadvantages?
In principle, borrowing is less beneficial than saving money. It is logical that if you save money you do not pay interest on this. When borrowing it is almost always the case that you pay a certain percentage of the total amount in interest. It is also important that you first carefully check whether you can miss the monthly costs of repayment. With a mortgage, for example, when you can no longer afford the costs, your house is the collateral. The bank therefore has the option to sell your house if you can no longer afford it.
Can I borrow money without having an income?
Many loans are not possible without having a significant income. But there is an option to borrow without having an income and that is through the social bank. Although you cannot get a high loan, you can still borrow an amount without having an income. A mini loan is also possible without income. This often concerns smaller amounts and must be redeemed within a relatively short time. However, the costs are quite high and this is therefore not very favorable.
Black list and bkr?
A bank does not just lend to everyone. You must therefore first prove that you have a suitable income for the amount that you want to borrow. It sometimes happens that people borrow money but do not want to or cannot meet the monthly installments. If this continues to happen systematically, you will be blacklisted by the bkr.
BKR helps prevent you from taking too much hay in your finances. We do this by informing organizations that are affiliated with us (business customers) about loans that you currently have or have had in the past five years. This information is recorded in our file, the Central Credit Information System (CKI). Source: BKR
The black list is a list on which you have information and the banks can see that you are a defaulter or not planned. You can take out a loan with a bkr registration with some lenders, but the chance that you will find one that offers you this is very small.
How old do I have to be for a loan?
In general, you must be 18+ with most loans and have a significant income. However, it is true that you will get a mortgage or the like less quickly at the age of 18 than at the age of 30. There is also a type of loan for young people that you can get if you are still studying. That is namely the loan that you can take out in addition to your student loan. You can set the amount you want to borrow yourself, but there is a limit. You pay relatively little interest on this and at the end of your education, after obtaining your diploma, you can agree with the education department (duo) what you can miss per month and in this way you can repay the loan.
Have a loan and apply for a mortgage
Unfortunately, if you have a loan with monthly repayment, your mortgage will be a lot lower. Although your gross income is high enough to get a reasonable mortgage, you will be able to borrow a lot less with your loan. It is therefore convenient to pay off your loan first before you apply for a mortgage since the amount of your mortgage will increase considerably if you no longer have a loan. If you have a mortgage that you have already repaid to a large extent, you can, for example, get money out of the mortgage for a refurbishment in order to be able to pay for it. This way, your monthly payments will be higher, but you will have the option to renovate.
Nowadays it is very normal to have a loan. More than half of the Dutch have a loan somewhere such as a mortgage, student loan or regular loan. The most important thing is to look carefully at which provider you choose as there are a lot of them but the interest is often not the same. Some interest rates are so absurdly high that you will eventually have trouble paying off your loan and you will therefore never get rid of the loan again. A handy tip is to never take a longer duration than expected to enjoy your product. For example, you can borrow money to pay for a car, but note that the duration is no longer than that you will drive the car. After all, it is not favorable to take out another loan for a car while you are still paying off the loan that you had from your previous car. Always make sure that you can pay off the loan and if necessary start a small test by setting aside a fixed amount each month. If it turns out that you can miss this amount every month, you can look for a loan that requires the same amount. for the repayment of the loan.