Borrowing money is always exciting. On the one hand you can realize your plans quickly, on the other hand that money has to be paid back. And preferably at the lowest rate. The larger the loan, the more time you normally spend on the calculation. But did you know that there is a tool with which you can see within a few seconds what a loan will cost you? That is the so-called simulation tool. Do you do a loan simulation for different money providers, and so you quickly have a good idea who provides the cheapest loan.
There are all types of loans.
This is how we know the mortgage loan, which is usually the largest. You are often the longest bound to pay it off. On the other side of the spectrum there is the mini loan. This concerns small amounts, usually below 1000 USD. You can request this for the purchase of a new television or because you are a bit tight in the coming months; mini loans can be paid off relatively quickly. Between these two there is a range of other loans that are used for all kinds of purposes. For all these different loans there are very many credit providers. It is therefore important to choose the lender that suits you best.
To calculate a loan you have to keep a close eye on a number of factors, such as your income and expenses, monthly payment, the APR and the term of the loan. First make an overview of what you have left per month (with a little leeway for unforeseen events) and compare the providers with the lowest APR through a loan simulation. The APR is the percentage that comes on top of your loan each year; it includes interest and borrowing costs. Every money provider must state the APR on its website. That way you know exactly where you stand. Very pleasant.
Go to the website of the provider and perform a simulation.
For this, some information must be entered; the amount of info depends on the amount. For example, with a mini loan you only have to enter very little and with a mortgage loan you need significantly more. But within a few seconds you will receive an answer to your request. This way you can see who offers the cheapest loan through various loan simulations.
By means of a loan simulator you can therefore make an informed decision about your loan. That is important because you are stuck with the loan for a long time, especially with large amounts. In the meantime, life goes on; invoices, holidays, children who need everything and so on. So never take out a loan without performing a loan simulation. Once that is done, you can make a well-founded choice and enjoy the benefits of your loan.
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No, that’s not smart. But let’s start from the beginning. After years in your own home it is time for a new kitchen. First look around in your old kitchen and count the electrical equipment that is there: oven, hob, extractor, fridge / freezer, microwave, dishwasher and maybe more. This equipment is / is usually built-in, so that must be replaced in any case. On top of that come your sink with faucet, new cabinets and drawers, splash wall, any tiles and so on. For these types of projects it is smart to apply for a loan because the interest rate has never been so low.
Calculate your loan
The big question is of course what this will cost you, so you must first calculate your loan. Because it rains that way, you don’t feel like putting on your jacket, entering a bank and gathering information about your monthly payments. But with this type of loan you don’t have to. From your favorite chair, with a laptop on your lap, you can quickly see if you can raise the loan. You do have to do a bit of work, but you are sitting warm in front of your fireplace, and that pint next to your elbow also tastes great. First make an overview of your monthly income and expenditure (and do not take the latter too tightly). This way you know what you have left over each month and you can use that as a payment amount. Now comes the detective work:
Cheapest credit provider
Try online to find the cheapest credit provider that lends you money at the lowest rate. With all those lenders, that can take a while, so we’ve already put the cheapest providers in a table for you. Search for yourself, of course, if you want to see more options. Nowadays, money lenders and banks make it very easy for you: they offer you a simulation tool for free; that makes calculating your loan a breeze. With this tool you can simulate an imaginary loan and see what you will pay monthly, including interest and borrowing costs. It couldn’t be simpler and you will soon know what your options are.
The simulator asks you to enter a few details, such as the term of the loan, sometimes your age (depending on the size of the loan amount) or any other loans that are running. The questions depend on the amount to be borrowed. Maybe you only need 500 USD because you are short of cash this month or your washing machine is broken. Then such a loan is cleared very quickly and you often have the money in your account within 24 hours. Larger amounts often provoke a few more questions, because of course you should not get into trouble. Calculating a loan is therefore important. You know that despite that loan, you can still continue to do your thing and cook at the same time in your new kitchen. These are two birds with one stone. Nice right?
You have found your dream house.
We assume that you have found the cheapest provider by comparing the lenders. You already enter the bank in a well-informed manner to apply for a home loan. A mortgage loan is about (a lot of) money. Then it makes sense that the bank wants to know for sure that it will get its money back. You need to be able to submit most documents for this loan. They help the bank determine the risk factor for lending you that money. Taking out a mortgage loan therefore takes some time and effort.
The bank will appoint an expert to estimate the value of your future residence.
What you should be able to present in any case are the sales agreement, your tax assessment notice from the past 2 years and usually 3 pay slips (not older than 3 months) from your employer. Most banks require that you work for a minimum of 6 months to 1 year via a fixed work contract. If you are self-employed in the main profession, present the most recent invoices that you wrote and possibly take your accounting with you for a more complete overview. When it comes to building a residence, potential building permits must be demonstrated. If it is (also) a renovation of the (to be purchased) house, then take the quotes for the works and the estimate with price indication from the architect or contractor. And of course, don’t leave your ID card at home by accident, otherwise taking out a loan becomes difficult.
For a home loan (or refinancing thereof), your partner’s salary can also be included. In that case, in addition to the aforementioned documents, the marriage or cohabitation contract must also be submitted. You can usually borrow between 30% and 40% of the net salary. You may also wish to take a declaration of an inheritance or gift with you, and a proof of your own resources (which you have saved, for example) and / or other income. This also includes children’s money; a copy of the last 3 deposits is sufficient. The bank will consult the CKP (Central Individual Credit Register) whether you have other loans and you have no payment arrears or have you ever had one. It is therefore wise to take copies of it. Some banks also want to see an employer certificate; that is filled in by your boss. And if rent,
Taking out a loan requires a debt balance insurance; this way the bank is protected if something happens to you. If you already have such insurance, take it with you. The Belgian likes to buy by-products, such as a home and debt balance insurance. He does this because the bank then charges lower interest and the monthly payment becomes cheaper. Over the years, the bank’s policy can be many thousands of USD more expensive than that of another insurer. If you find out and cancel the insurance, the interest rate will rise and you will lose your benefit. So read all the conditions carefully so that you do not fall for it. Now you have a good idea of what the bank needs. So get started with copying.
Borrowing a small amount of money is sometimes not that easy. After all, loans from banks only start from 2,500 USD. But you would be foolish to borrow more than you need. Fortunately, there is a solution for this type of loan: other credit providers. This loan is sometimes also referred to as a mini loan or mini credit, depending on the provider. The internet is the ultimate place to look for the cheapest credit. Borrowing costs money and that also applies to a relatively small amount. But with the lightning-fast rise of lenders, it is now easier than ever to buy the cheapest loan. Simply via your laptop.
Borrowing 1000 USD
Have you ever noticed that if a piece of equipment fails, one will follow shortly afterwards? Ambitant, because there is not enough on your account this month to replace both the washing machine and the boiler. It is also not the case that it can all wait until the following month; then you have 25 kilos of wax or you breathe out ice cubes. Emergency therefore breaks the law, and a smaller loan is a solution. Borrowing 1000 USD is enough to get you out of the fire without much risk. But note: even small loans can differ in the repayment. So sit on your lap for 20 minutes with your laptop and compare the credit providers.
For relatively small amounts, it is usually not checked whether you are on the ‘black list’ (you have / had a credit that was not paid on time). Surf to the website of the provider with the lowest APR. The annual percentage rate of charge includes the annual interest and borrowing costs. They are sometimes considerably higher for a small loan than for larger loans, because it involves a very short term. After all, you often have to pay off the loan within 15 days to a few weeks. On the website of the providers you will find a simulator tool – a type of calculator. By entering the amount and the term you know within a few seconds what you will pay off.
There are even providers who do not charge borrowing costs at all, only an interest rate. It is therefore important to try out different providers via the loan simulator. This way you get a good picture of who best fits your budget. That is of course the institution with the best interest rate and the best conditions. Sometimes the provider asks for documents (for example, pay slip) to be sure that you can pay off the amount. You can simply apply for the loan online and attach any documents. The amount will often be in your account within a few days. As you can see you can quickly and easily borrow 1000 USD at the best conditions and interest rate. To make it even easier for you, we’ve probably put the cheapest providers in a table. This way you can quickly see who you prefer to work with. So compare them.