Which loan is best for me?

Miscellaneous Gbeast August 8, 2016 0 0
Which is the best loan, it is usually simple to reason. Is a longer time and more money than is revolving credit, a good choice. Is one-time need for a higher amount, opt for a personal loan. And those with fewer needs money, it may be better just red.

How to choose the best loan?

The best loan: many people are in the course of their lives the choice which loan they need to take. In recent decades, much has changed in that area. In the first place the threshold is lower in order to enter into a credit. And have changed the social structures themselves in second place and one seeks financial support less within the circle of family and friends, as was previously the case.
The more important it is to make a careful comparison before you sign a credit agreement. There are of course various ways to compare types of credit and loan terms with each other, but finding the best loan for your situation can always be traced back to two basic questions:
  • What is for me the best type of loan?
  • Which lender offers me the most favorable loan conditions?

Which of loan is for me the best?

In the introduction, briefly indicate which questions you should ask yourself to choose the loan form that best suits one's particular need. Besides the already mentioned options, there is of course also the possibility of a mortgage loan if you have your own home. Although this is not an exhaustive list pretends to be summed so you can choose from the following types of credit:
  • The revolving credit;
  • A personal loan;
  • Overdraft;
  • The mortgage.

In addition to the aforementioned forms here, there are other forms of consumer credit which are not dealt with extensively in the context of this discussion. You can think of leasing, hire purchase, leasing, credit cards and so on.

The revolving credit

Where revolving credit, known as DK, the bank speak with you about the maximum credit that you can access without prior approval. You decide if, when and in what amount you make use of this possibility.
Each month you pay a fixed amount of repayment, usually 2% of the agreed credit limit. One may also opt for a lower repayment, but that results in a longer term. A DK has what is called a fancy word, a revolver back character: what you relieved to be included later, of course, up to the awarded credit.
Interest is paid only on the actual amount withdrawn. In contrast to the PL, there is DK with a question of a variable interest rate.

The personal loan

A personal loan is one rule for the purchase of one single product and has a pre-agreed fixed term and interest rate. In general, a annuïteitenschema is applied, a repayment schedule with the same monthly amount is payable. It is therefore obliged to repay a portion each month.
Though that may differ from lenders is a maximum term of five to six years is typical. If the loan is used to purchase goods with a longer life or for home improvements, wants the term sometimes longer.
Usually you pay a higher interest rate on a personal loan or a revolving credit.


Who has a house disposes with enough surplus value is usually better off with a second mortgage or a personal loan. Many people are mistakenly put off by the high fees which would bring with it, but if your mortgage is less than the notarial registration, you are no legal fees. Indeed, it is advisable to align the duration of that additional mortgage on the life of the fund object.
And are you looking for the cheapest mortgage, then the next you may be interested. Starting from the year 2000, the mortgage with by far the cheapest mortgage out on top. It is also understandable because the banks at a fixed rate mortgage should always build in a hefty risk premium to the interest rate risk that they run.

Whoever offers me the best loan conditions?

In the first place, one can of course contact the bank, but it is worthwhile to examine other financial institutions and the provision of online providers further before making a decision. And maybe even the latest version for you loan worth considering: borrow money without involving the bank. Only when one is definitely the best form of credit to have found under the best conditions, one must sign.

Lending is not charity.

It is important now for all to note that only a careful credit equation leads to the right results. Often lure providers suspiciously low interest rates, while further investigations are often hidden fees and commissions reveals. So keep this proverb in mind always: Lending is not a charity!
The effective interest rate is one of the main criteria to decide on a loan. That itself can easily be established with an independent credit equation. Of course you can also request an independent financial advisor for advice when it comes to the best loan for your own spending target such as a house, a new car, a longer holiday. It is important that you can rely on the professionalism, competence and transparency of the person concerned.