The interest rate of a loan is of course the most important information to know. You naturally want the interest on a loan to be as low as possible, so that borrowing money costs you as little money as possible. With a low interest rate you always have low monthly costs. Your monthly costs are formed by the interest that you pay in combination with the repayment.
Variable or fixed interest
Depending on the type of loan you take out, it is determined whether you must pay a fixed interest rate or a variable interest rate. Basically there are two types of interest rates:
- Variable interest rate: with a variable interest rate you exchange interest with the market. When the banks raise interest rates, the interest on your loan is also raised. This is the case, for example, with a revolving credit.
- Fixed interest: with a fixed interest the interest rates are fixed in advance. You always know where you stand, so this is a very safe form of borrowing money. You get a fixed interest rate with a personal loan, among other things.
Before you take out a loan, you must therefore carefully consider which form of interest best suits your situation. You can choose the right loan based on this.
Only pay interest
Nowadays there are also forms of credit where you only have to pay the interest. You do not pay off this interest credit. For people who want low monthly payments and can pay off the loan at the end of the term, this is an ideal type of loan.
Interest on borrowing with BKR
If you have a BKR code, you can still go to many parties for a loan these days. Borrowing money without BKR, however, has a number of disadvantages. One of the biggest disadvantages is the high interest that you often have to pay. This high interest rate is charged on because borrowing without a BKR assessment entails a high risk. If you have a negative BKR registration, you have already been in payment problems. Perhaps a credit card without BKR assessment is an option for you?