Borrow cheaper money with smart tips
Borrowing money costs money – we all know that. Even if the interest rate is 0%, a lender must state that borrowing money costs money, if only to make people aware that a loan should not be a habit. Anyway, if you still have a loan or need to borrow money, then of course preferably as cheap as possible. Starbuck gives you tips for cheaper borrowing!
1. Compare loans properly
There are still plenty of people who just go to their bank and apply for a loan there. Not smart: it is often much cheaper to arrange online. The interest at the bank is often higher than what is possible elsewhere. That is not surprising: those bank branches and all that staff also have to be financed from something. Fortunately, comparing loans online is not difficult: here on Starbuck we help you with a clear and fair comparison.
Compare loans directly
2. Do not borrow via the webshop or mail-order company
Those who make a purchase in the large webshop – the modern version of the former mail-order companies – can often easily do this on credit. That is no effort and seems interesting due to a low monthly amount. However, look a little further and you will see that there is a very high-interest rate incorporated in those monthly payments. Just calculate what you pay in total (the monthly amount x the number of months) for your purchase!
3. Set the running time as short as possible
It is also smart with a regular personal loan to keep the term as short as possible. Of course, the associated monthly charge must be payable, but the shorter the term, the less you pay in total for your loan. A higher monthly amount means faster repayments and therefore less interest on the whole.
4. Prevent overdraft on your payment account
Not everyone realizes it, but overdraft on your checking account is also borrowing money. For that form of borrowing, you pay a substantial interest to your bank. In addition, there is a difference in interest between ‘permissible’ and ‘illicit’ overdraft. You can be overdrawn within the limit that you have previously agreed with your bank – so that is permitted. If you are redder than agreed, it is illegal and you pay a significantly higher interest rate.
5. Keep comparing with current loan
If you have taken out a loan, well compared, lowest interest … are you ready? In itself, you can keep that loan until it has been fully repaid. It can only be fine that interest rates fall over time, making new loans even cheaper. Then it can be interesting to transfer your current loan to a new one.
Check for penalty-free repayments
Therefore, check when taking out your loan whether you can repay it without penalty. That’s great anyway: if you win a lottery or suddenly get a large amount at your disposal through something else … then the first thing you want to do is, of course, pay off your loan. Without penalty. An additional advantage is that you can also switch to another lender without a fine. Then you can take advantage of the decreased interest!