What can you borrow money for? Often the first thing we think of is a renovation. But besides that borrowing money for a renovation is a good investment, there are more things for which you can borrow money. How about buying a car, camper or boat? But renovating your bathroom or kitchen is also a good option for borrowing money. We explain to you which loan is best suited to a large number of things for which you can borrow money.
Purchase of vehicles
Sometimes buying a car is a necessity, sometimes it is a dream. But in both cases it is interesting to find a loan with the best conditions and the lowest interest rates. You can borrow money for a car through a personal loan and through a revolving credit. When people borrow for the purchase of a car, they usually opt for the personal loan.
The personal loan is ideal for purchasing a car because you get the amount that you borrow paid into your account in one go. The interest, the monthly period and the term of the loan are fixed and are therefore known before signing. In this way you know exactly where you stand and how much it will cost you per month. You also know when you will have fully repaid the car. It is important here that the term of the loan remains shorter than the time you expect to drive around with this car. It would be very annoying that you are still paying while you no longer have the car.
A motorcycle can be ideal if you have to drive to work every day via that busy highway. No longer being in a traffic jam saves you a lot of time on an annual basis. You can borrow the money for the purchase of a motorcycle through the personal loan or the revolving credit. Just as with the purchase of a car, the personal loan is usually chosen when purchasing a motorcycle.
What makes the personal loan so interesting in this case? A motorcycle won’t last your entire life and maybe not as long as a car. There are enough people who ride a motorcycle for a few years and then decide to sell it again. If you opt for a personal loan, then before you take out the loan, you can calculate exactly how much you will spend on repayment and interest per month. Plus you can calculate how long the term of the loan will be and when you have fully repaid it. This way you prevent that you are still paying off the motorcycle, while you have already sold or disposed of it. Once you have repaid the loan, you cannot withdraw the money for anything else. This way you avoid buying stuff that you actually didn’t want to buy.
There are several options for financing a boat. For example, you can choose to finance the boat with the selling party, take out a ship’s mortgage or finance the boat with a loan. We prefer the latter option, because it appears to be the cheapest solution in most cases.
Borrowing money from a lender can take various forms. You can choose a personal loan or a revolving credit. What is most sensible in your case depends on the situation. If you buy a boat that does not require major maintenance for the time being, you probably want to pay it off in one go. This is possible when you opt for a personal loan. Do not automatically choose the longest term because the interest rate is then the lowest. Calculate how much you can repay each month and then choose to pay off as quickly as possible. In this way you lose the least costs to the interest on top of the loan amount.
If you buy a boat that you want to do some things up and several major expenses will follow, a revolving credit is the best choice. With a revolving credit you determine when you withdraw which amount. Amounts repaid may also be withdrawn.
Going and standing wherever you want, that is the big advantage of going on holiday with a caravan. Once you have found a place, you can go out with your own car. The purchase of such a handy caravan is just not cheap. For that reason, most people choose to finance this through the dealer or through a loan. We prefer financing via a loan. In this way you can pay off your debt directly at the dealer, making the caravan your full property the same day.
The most suitable loan for a caravan is a personal loan. You borrow the amount you need to be able to pay the caravan directly at the dealer. You then pay a fixed amount in installments plus interest to the lender each month. The interest is fixed when you choose a personal loan. So you know in advance how much you spend per month and how long it takes before you have fully repaid the loan from the lender. Please note that the duration of the loan is shorter than the duration of use of the caravan. This way you avoid paying off while you no longer own the caravan.
A camper gives you both comfort and complete freedom when you go on holiday with it. You drive everywhere you want to go. No more dirty camping showers, thanks to your new camper. Unfortunately, the purchase of a camper is not cheap and many people will have to take out a loan for it.
If you know in advance how much the camper that you want to buy will cost, it is best to opt for a personal loan. You know exactly how much you borrow, how much you spend per month and how long it takes before you have repaid the loan. If you have seen a camper that still needs to be rebuilt or repaired, you can opt for a revolving credit. You decide when you withdraw which amount. Is repairing the motorhome a bit more expensive? Then you can easily withdraw a repaid amount.
You can finance a renovation in several ways. You may have enough money for the renovation, but in most cases you choose to extend the current mortgage or take out a loan. Due to the high closing costs, expanding the mortgage only becomes interesting from 25,000 euros. In addition, you must take into account a repayment period of 30 years. Taking out a loan for renovating your home offers more options and more freedom.
“Did you know that you have to reserve 5% of the budget for unforeseen costs?”
If you are about to renovate your house, you can choose from a revolving credit or a personal loan. Do you know in advance how much the renovation will cost? Then you can opt for a personal loan. You receive the amount in one go on your account and then pay a fixed amount in installments and interest each month. This loan offers a lot of security. The total amount, the term and the interest are fixed and cannot change during the repayment. If you take out the personal loan to improve your home and you pay off during the term, the interest is deductible.
Do you not know in advance exactly how much the renovation will cost and when you will need a large sum? Then you can opt for a revolving credit. You determine a credit limit in advance, but are then free to withdraw the amount. Amounts repaid can also be withdrawn. In this way you keep extra financial space during the entire renovation.
Financing a renovation often involves taking out a second mortgage. But did you know that this is only interesting when you borrow more than 25,000 euros? Not every renovation has to cost that much. It is then cheaper to take out a loan, without costs for a consultant, appraisal and notary. After applying for the loan you have access to the money after a few days. In the case of a mortgage this will take approximately four weeks.
If you decide to take out a loan to renovate your home, you can choose from a personal loan or a revolving credit. The personal loan has the advantage that you receive the total amount directly into your account and always know where you stand. The interest and the term are fixed, so you know what you have lost per month and how long it takes before you have fully repaid the loan. The interest for renovating your home is deductible when you opt for a personal loan. The revolving credit has the advantage that you have more financial room for a longer period of time and you are your own boss when you withdraw the amount, repay it and possibly even withdraw it.
It is one of the most common projects in our house: making a dormer window. With this you create extra space for a bedroom, a workplace or a more spacious attic. With a dormer window you always bring more space and more light into your home. Before this dormer window actually sits on your home, you quickly lose 4000 euros. It can therefore be nice to take out a loan for this.
You can finance the dormer window with both a personal loan and a revolving credit. By going for a personal loan you keep it organized because your monthly payments are fixed and you know exactly when the loan will be paid off. In addition, the interest is deductible from income tax as long as you use the money to improve your home. If you opt for a revolving credit, you have more freedom. You determine when you withdraw, repay and withdraw which amount. If the dormer window is more expensive, this is no problem with a revolving credit. You only pay interest on the amount that you actually borrowed.
Many people choose to borrow money from their ‘house bank’ because that is familiar. However, you will see that by comparing online lenders you can find loans that are a lot cheaper. Large banks ask for higher interest rates for a loan than online lenders do. Some lenders will also offer you a discount on a loan if you indicate that you are a homeowner.
A new kitchen almost always means a big expense. Of course you can choose to save for this, but that will take some time. You can also choose to take out a loan and repay it monthly.
Most people who borrow money for a new kitchen or rebuild the current kitchen opt for a revolving credit. It is difficult to determine in advance how much money you will spend on the new kitchen or renovation. There are always extra costs that were not calculated in advance, such as the laying of pipes or the tiling of a wall. The good thing about a revolving credit is that you decide when you withdraw what amount and you pay off when you feel the financial room for it that month. If the renovation is disappointing, you can choose to re-take repaid amounts. This way you avoid having to take out a new loan.
Finally that bathtub, rain shower or underfloor heating in the bathroom? With the renovation of your current bathroom, these wishes can become reality. Rebuilding your bathroom only costs money. You can choose to save for this until you have the amount together. You can also choose to take out a loan, already carry out the renovation and then repay the loan.
There are bathroom installers who offer a new bathroom on installment. You then pay your new bathroom to them plus the associated interest. These interest rates are often very high. It is cheaper to take out a loan and thus finance the renovation. You can find the cheapest loan by comparing the online lenders. You will see that they are cheaper than the large banks where you may have taken out your mortgage at the time.
“The difference between the cheapest and most expensive loan for a bathroom is around 700 euros a year”
With these online lenders you can choose from a revolving credit or a personal loan. A revolving credit has the advantage that you can withdraw and repay unlimited amounts up to a certain amount. If you seem to need some extras, that’s no problem. You only have to pay interest on the amount that you actually borrowed. But you can also opt for a personal loan. In that case, the interest is deductible from income tax. In the case of a personal loan you will have to calculate exactly how much money you need for the renovation of your bathroom. You receive this amount in one go on your account, after which you pay a fixed amount in installments and interest each month. Opt for the shortest possible term at monthly charges that you can carry well. That way you can take out the cheapest loan.