Are you considering taking out a loan and are you wondering what different types of loans can be interesting? We discuss various credits here and you have to take them into account.
The different types of loans
A loan, also called a credit, can be concluded in many different types and sizes. Think of a mortgage or a consumer loan, but there are many other types of loans. Perhaps you have ever had a loan yourself, without being aware of it. The National Institute for Budget Information sheds light on the different types that you can conclude and the conditions attached to these loans. Make sure that borrowing money always costs money.
Different types of loans: revolving credit
Continuous credit is one of the best known and most popular loans. There is a credit limit and you can borrow up to that amount. You can withdraw the amount in one go, but you can also redeem early or withdraw in parts. There is no fixed term and no fixed price.
Different types of loans: personal loan
With a personal loan there is more clarity: the amount, the loan period and interest are determined in advance. You have to redeem and can not then withdraw the money again.
Different types of loans: overdraft
Also overdraft is seen as a loan. When you can withdraw more money than you have on balance, there is a form of borrowing. You decide which amount is the limit for you and this is registered with the Credit Registration Office. Often the costs for overdraft are relatively higher than for a personal loan or a revolving credit.
Different types of loans: flash credit
A loan credit is a fast loan that you can take out for a small amount. The loans must be repaid in a short time and are often expensive. The interest rate then seems low, but there are many additional costs. So pay attention to the fine print of these loans.
Different types of loan: purchase on installment
When you buy something from a mail order company, home shopping organization or webshop that you do not have to pay later, we are talking about purchase on payment. Purchasing on installments, or paying in installments, is also seen as a loan and extra costs are charged on this. Often it is relatively expensive to buy on installment and it is easy to be tempted to buy (too) expensive products. The same applies to customer cards and credit cards, where payment (including interest) comes later.
In addition to these types of loans, there are also: lease purchase, lease and similar. It is important that you realize when your money is being borrowed, with a BKR registration resulting in payment problems. One form of borrowing is more expensive than the other and when in doubt we advise not to borrow at all. Only borrow if necessary and make an informed decision based on the costs, risks and conditions of a specific loan.