Do you want to buy a car or residence? That costs a lot of money, money that you usually do not have in 1-2-3. For this type of loan, most people take out a loan that is repaid over a certain period. There are many options for getting your credit cheaper than you thought. Read these 5 tips to take out a loan as smartly as possible.
Pay your loan
First make a list with your monthly income and expenses, such as water and electricity, telephone, household money, car use, etc. This way you have a good idea of what you will have per month and how much you can pay off on a monthly basis. Did you save some money? Use a part for the purchase. The interest on your savings is almost always lower than the interest you pay on your loan. Keep some savings behind for unforeseen expenses.
If you want to buy a car, check the fuel consumption and the traffic tax that you are going to pay. They depend on how big and strong the car is. Maybe you don’t need a big car at all; then you can save a lot with a smaller model. Do not take out a loan when purchasing a car. You quickly pay the dealer a much too high interest rate; sometimes as much as 10%. Go to a bank or other lender for a car loan. You can quickly see online which provider has the best APR (annual percentage rate).
When buying a home, compare the sofas and play them against each other. For example, if you go to bank 1, do not sign immediately for the loan, but also go to bank 2 and even 3, and tell what you were offered as loan conditions. There is a good chance that they will make a better offer to lend you that money. Also note whether the interest is variable or fixed. A fixed interest rate gives more certainty, but a low variable interest rate (or entry interest) can also be worthwhile. Check carefully whether a certain entry interest rate is part of a promotion, and therefore only valid for a certain time before it rises.
What you have to pay off each month also depends on the duration of a loan and whether you will be fined if you pay early. A shorter duration is cheaper, but your monthly payment will be higher. Check whether there are additional advisory costs and what the closing costs are. It is also important to check the credit provider for a license and to read the conditions carefully. Credit providers can differ greatly among themselves.
Online you can easily view the APR (your annual percentage of costs on the loan) of the providers and then surf to their websites. There you can request a free quote by using their free simulation tool, enter your loan amount and see what you will pay off each month. This way you can quickly find the provider that suits you best. And that is of course the cheapest!