Borrowing money can change a lot of things in life.


Both positive and negative. Before you borrow money it is therefore wise to ask yourself 3 questions.

  1. Is the product for which you want to borrow the money really necessary?
  2. Can you also postpone the purchase of the product or service so that you can save on it?
  3. Can you repay the loan and in a few years?

There is virtually nothing as uncertain as the future and since a loan does influence it, it is not necessarily good to borrow money. Borrowing money does cost money! However, it may be necessary here and there and for those cases we will discuss in this article how to take out a loan.

What kind of loan do I have to take out?

What loan you have to take out depends on a number of things. There are many different loans. If you buy a house, you apply for a mortgage. A mortgage can not be applied for on a car. We call that private lease. It is therefore very dependent on what you spend your money on. Do you immediately need a new kitchen or are there a number of things to be replaced such as a car that is broken? Then it is useful to look at a personal loan. If you want to borrow for a longer period, a revolving credit loan may apply.

Personal loan

A personal loan is a loan that is agreed in advance with the authority that granted it. This loan is fixed for a certain period and the amount to be repaid per month is fixed. That way you know exactly where you stand and it brings less risk than a revolving credit.

Revolving credit

The revolving credit is a loan that does not have a fixed term and can therefore continue forever. The advantage of the revolving credit is that you can never run out of money as repaid amounts can also be withdrawn again. The interest rate is, however, somewhat higher than with a personal loan. This loan therefore carries more risk but also has its advantages.

Where can I take out a loan?

A loan can be closed in many places. This is often possible at your bank and otherwise there are several companies that provide loans. It differs for each company or bank by how much you can borrow. A bank often has loans at a lower interest rate than commercial institutions. This is favorable because borrowing is simply cheaper. Yet it can also be unfavorable when you need a large amount. That is why it may be useful to have your loan with a commercial company.

How do I find the cheapest loan?

A loan is cheapest when the interest rate is low and the conditions are right. It is of course difficult to contact each provider personally and to ask what the possibilities are. That is why there are several comparison sites that help you with this. On the comparison site you fill in your personal details and on the basis of that it is calculated which authority is best for you. Please note that you know well what kind of comparison site you are dealing with. It is possible that these websites are not completely independent and that affects the results shown.