A blacklist for borrowing money is a negative BKR report

 

Is there a blacklist?

Is there a blacklist?

Is there a blacklist on which people can end up and thus not get a loan? The answer is no. In the Netherlands, the Credit Registration Office (BKR) keeps track of the loans that have been lent. The data on these loans comes from the banks and financial service providers who must legally consult the BKR if they want to provide a loan.

Negative BKR listing

Negative BKR listing

If people get a payment arrears or catch up with this debt, a code is put behind the loan. This listing is also referred to as negative bkr. There are also codes for payment schemes or remissions. Someone who has such a negative bkr often has difficulty borrowing money. Certainly because this negative statement remains in the BKR system for five years after the loan has been paid. Sometimes you cannot get credit for years because of a small unpaid bill from a mail order company or telephone bill.

Black list and still borrowing

Black list and still borrowing

It is not a blacklist that is the reason why you cannot get a loan, but a negative entry in the database of the Credit Registration Office. Because of this mention it is often not possible to borrow money. If you still need money urgently in the short term, a mini loan can offer a solution. Mini loans are small loans between 100 and 800 euros. The providers of the mini-credit have (also) an office abroad (England, Malta). As a result, they do not have to check the mini loan with the BKR, but make an assessment of the risks themselves if the customer can carry the loan. If you are a regular customer, a mini-loan can already be on the bank account the same day.

Remove blacklist entry

Remove blacklist entry

If people cannot get a loan, a blacklist is not responsible for this, but probably a negative BKR statement. There are various websites on the internet that offer to remove this negative bkr against payment. Unfortunately, this is less easy than is suggested. At the BKR, anyone can request a print-out of their status. In this way it is possible to find out whether a negative BKR is the reason that you cannot get a loan. The request only costs 5 euros on the official website of the BKR. If a negative entry is found and you find this wrong then you can take action. You then ask the company that gave this listing (a bank, mail order company, store) if they want to remove it. If they do not do this, you can go to the Disputes Committee as a final step for a final judgment.

Can you borrow money to book your vacation?

Going on vacation is good for us. We are happier, healthier, more relaxed, more energetic and more satisfied than if we just stay home. So it’s time to book. But what about your budget? What if you have not saved and do not have a financial buffer? Can you actually borrow money to book your vacation? And is that wise?

The question of whether a holiday loan is sensible will be answered differently by everyone. It is usually recommended to take out a loan only if there is a real investment in return, such as the purchase or renovation of a home. But what if you really need a break? Then borrowing for a vacation can be interesting. Some lenders even promote the holiday loan. Usually in the form of a personal loan.

Possible formulas

Possible formulas

A personal loan (or installment loan) is the most frequent and cheapest form. Everything is determined in advance: the loan amount, the interest, the duration and the amount that you have to pay back. After approval, the amount is simply deposited into your account.

A revolving credit is a second but more expensive option. The interest rate is variable but will be higher than with a personal loan. You must repay the loan at agreed times in accordance with the conditions, but you can use the credit again afterwards. It is therefore a money reserve that you can keep available. Withdrawing the full credit is also not mandatory.

A third option is the credit card. A credit card offers you a certain credit limit every month. In other words: you can spend a little more money if you just want to buy that one product. Or book that dream trip. A credit card is therefore an extra financial buffer, adjusted to your personal situation. You can also use a credit card as a normal bank card. You can therefore use it to withdraw money (also abroad) and make payments in both physical stores and on the internet.

A few tips

A few tips

Make sure you calculate how much extra money you need in advance. That way you can avoid borrowing too much. Opt for opting not to take out a loan but to save enough for your holiday in advance. Need a loan anyway? Then look specifically for ‘holiday loans’ and try to save interest in this way.

Compare as always with different providers. This is best done online. This not only saves you a lot of time but can also be 24 out of 7.

There are various options for calculating on the internet how much you can borrow in your situation. For this you need certain data, such as your income per month, your expenses per month, what you pay in rent and whether you already have another loan. Once you have entered this, you will receive an amount that you could borrow monthly or in total.

Other comparison sites make it possible to compare all the conditions of different lenders so that you can see at a glance what would be the most favorable.

The payday loan has a fixed term and a fixed interest rate

Payday loan

Personal loan

When borrowing money you have the choice between a revolving credit or a payday loan. The most important difference between the two loans is that a payday loan has a fixed term and a fixed interest rate. You receive the loan in one go to your bank account, after which you pay off the same amount every month, regardless of interest rates. Withdrawing extra money is not possible. The payday loan is a great choice if you want to know exactly what the credit will cost you.

Interest deduction for renovations

Interest deduction for renovations

Another advantage of the payday loan is that you can deduct the interest if the loan is used for a renovation of your first owner-occupied home. The home must be your main residence. No financing interest can be deducted for a holiday home (as a second home). The money may also not be used to furnish the house.

Apply for a loan

Apply for a loan

Your free request for a payday loan will be sent to various lenders. Although the exact loan amount depends on your personal situation, this is usually between € 2,500 and € 75,000. Within 24 hours you will receive quotes from various internet banks in an overview. The bank pays the loan into your bank account in one go.

Borrowing in the Netherlands

Borrowing in the Netherlands

According to a Survey by Goview, more than 30 billion euros had been lent. The majority was in red (43%) followed by revolving credit (37%). payday loans (11%), credit cards (7%) and mail order credit (2%) are at a considerable distance. A payday loan is the largest with an average of € 8,672. This is because this type of loan often finances a car. 91,000 payday loans were granted in 2013. Car dealers provided 45% of these loans.

They lend more than the financing companies. The share of ordinary banks has fallen considerably to 13,000 loans. The car dealers are more expensive with their loans than the finance companies. The brand of the car also plays a role. A Fiat dealer calculated the cheapest interest with 6.9%. The most expensive were the dealers of Peugeot and Citroen with 10.4%.

Take out a mini-loan online or with a mobile phone

 

Mini loan without BKR

Mini loan without BKR

A mini loan is a small loan of up to 1500 euros. The entire loan must be repaid within 30-62 days. In America, mini loans are called ‘payday loans’. A loan that is repaid immediately on the payday. Financiers abroad provide mini-loans to people with a negative BKR. The lender makes an assessment of whether it is justified to provide a mini-loan. Please note: the mini credit can only be requested if you have a permanent job with a minimum of 1000 euros in net income.

Take out a mini loan easily?

Take out a mini loan easily?

Although it can be easy to take out a mini loan with a negative BKR, there are some conditions. As a rule, one must have income from a permanent employment contract. The income must be at least 1000 euros net. Student finance is exclusive. People on benefits, temporary employees and self-employed persons are not eligible. The mini loan without BKR must be repaid in 1 x after 30 days. Or within 62 days if you borrow 1500 euros. If you want to borrow 1500 euros, you must have a reasonably good credit rating. The lender determines this on the basis of your data.

Collection costs

Collection costs

Unfortunately, the reality is that some of the customers cannot pay back their mini-credit on time. After a number of reminders, the lender will hand over the debt to a collection agency. The latter will try to collect the debt by sending bills plus collection costs and fines. These amounts can add up considerably. Therefore, only take out a mini-credit if you are sure that the loan can be repaid. Also check the possibilities with the municipal credit bank. They help people with the lowest incomes. A loan from the municipality will require considerably more time and paperwork.

Borrow 5000 euros: 4000 euros in deposit

Borrow 5000 euros: 4000 euros in deposit

Do you have no negative BKR coding and a permanent job? Then you may be eligible for a cheap loan. The minimum credit is 5,000 euros. With a revolving credit you can, for example, withdraw 1000 euros and leave the remaining part of this cheap loan on deposit. This means that the money can be withdrawn if needed. Money that is on deposit is paid no interest on it. It is only available.

What are the pros and cons of a revolving credit?

Sometimes it is necessary to have a cash reserve. If you have not saved for this, you have a problem. Fortunately, you can solve sudden expenses that you cannot pay yourself with a credit. A revolving credit can offer a solution for this. Revolving credit is a bank term for a consumer credit in which the loan amount can be fully or partially taken up again during the term. Interest is charged on the outstanding balance of the credit. What are the advantages and disadvantages, however?

The most ideal situation for such a credit is when you know that a certain cost is imminent, but you cannot predict how much it will ultimately cost. Consider, for example, the repair of a car, the purchase of a new refrigerator or additional costs for the renovation of your home. A cash reserve is therefore recommended in such situations. A revolving credit is often cheaper than a cash credit (going below zero in your bank account) and can therefore be a good solution in some cases.

When we think about borrowing money, we think about banks. At least that was how it used to be. But in recent years, many lenders have sprung up like mushrooms and the possibilities for borrowing are now endless. There can be quite a difference between all those lenders, so comparing is the message. It is therefore important to find the cheapest provider – that is, with the lowest Annual Cost Percentage. Via the internet you can quickly make comparisons between the credit providers through their websites, and request a free quote using the handy simulator tool. You enter some data, such as what you want to borrow, how old you are, whether you have work and so on and within a few seconds you know where you stand.

Benefits of revolving credit

Benefits of revolving credit

  • you do not have to withdraw the entire amount at once
  • you only pay interest on the amount withdrawn
  • you can withdraw repaid amounts
  • you can always repay the loan in whole or in part without extra costs

Cons of revolving credit

Cons of revolving credit

  • Because you can easily withdraw money again, many people never repay the credit completely or repay much longer than with a personal loan
  • Because the interest rate is variable, the interest rate may rise during the term of the loan
  • Due to the possibility of re-taking you, you never know exactly when you will get rid of the loan

A loan can help you make an expense, it is and remains a cost. A small amount to borrow, you may not have to think about that for long. It seems so tempting to do. But don’t let it become a habit. There must be a certain point that, to the extent possible, you can save your own money and use it in an emergency. There are always family situations where that does not work, but where there is a will there is a way and you can achieve something yourself if you do that with full dedication.

Tips for borrowing money | How to borrow the best and cheapest money

Tips for borrowing money

Tips for borrowing money

If you are about to borrow money then you can use some money borrowing tips. Are you going to make a major purchase or are you planning to renovate your house? In that case you could use a little more financial room. You can save money for this, but you can also take out a personal loan or request a revolving credit.

Personal loan

Personal loan

When we talk about borrowing money, we start with the fact that you always have to borrow with your mind. It is fairly easy to apply for a loan during this time, especially now with the low interest rate for a personal loan or on the revolving credit. Before you apply for a loan, consider what kind of loan you want to take out. Do you want certainty? Then the personal loan is the best option for you. If you take out a personal loan, you know that the term, the interest and your monthly repayment always remain the same. Before you apply for a personal loan you will first have to compare the personal loan providers.

Borrowing for buying a car
The personal loan is the ideal loan for products or services that you do not expect to use for decades. We take buying a car as an example. The chance that you keep driving the same car for 10 years is rather small. Therefore, do not take out a loan for buying a car whose term is longer than the life of the car. It is also less sensible to take out a revolving credit for this. Since you can withdraw extra money with the revolving credit, it may happen that you have a much longer term than you drive in the car. The personal loan is therefore the ideal loan for buying a car.

How much can I borrow

How much can I borrow

How much can I borrow? Is a frequently asked question. Never borrow the maximum amount you can borrow. Try comparing the lenders who offer a personal loan. Low interest rates and good conditions are the points that you should pay attention to. If you already have a personal loan, it is also important to compare the providers. In that case, if you have found a provider with a lower interest rate, you can switch. Bear in mind that transferring a personal loan will not be without penalty. The penalty that is calculated may be a maximum of 1 percent of the outstanding amount. You will understand that you have quickly recovered the fine in this way.

Revolving credit

Revolving credit

Another option to borrow money is to request a revolving credit. With this loan form you go for flexibility. With a revolving credit, you do not know in advance what the interest will be over the entire term. Even the term of the revolving credit is not fixed in advance. We already wrote it, you close the revolving credit if you want more flexibility. You can withdraw extra money if you have taken out a revolving credit, but you can also repay it earlier without penalty. Ideal if you always want to have extra money. With the revolving credit, the interest is not fixed for the entire term, so you do not know the costs exactly in advance.

With revolving credit, it is also important to see where you can borrow at a lower interest rate. If you find a lender who charges a lower interest rate, you can transfer penalty-free.

Mini Loan

Mini Loan

If you are really tight and your salary is not yet paid then applying for a mini loan is a good option. With a mini loan you can borrow amounts from 100 euros to 1000 euros. The mini loan stands for borrowing money quickly, it is possible that you already have the money in your account the same day.

Borrow money quickly without BKR

Borrow money quickly without BKR

In most cases, no BKR review will be carried out with the application for a mini loan. Borrowing money without BKR is only possible with the mini loan. You must keep in mind that the duration of a mini loan is very short. The duration varies from 15, 30 and 45 days. But if you know that you will have enough money during this period, you can easily request a mini loan. Due to the relatively low amounts, it is even possible to borrow money with benefits. This is called borrowing without a payslip.

The tip that you should always remember is that borrowing money always costs money. It would therefore be better to save money. But we know that this is not always easy for everyone. So if you are going to borrow, first compare the lenders so that you never pay too much when you borrow money.

To invest with a securities credit

Borrowing to invest?

Borrowing to invest?

Define the risk profile

Is taking out a loan to invest a good choice? And where can you apply for such a loan? To answer the first question: it is risky to borrow money for an investment. Banks therefore work with a risk profile. You must indicate in advance what risk you want to run with your investment. In this way it is clear to both parties (the bank and you) where you want to invest the money.

By answering a number of questions online, your choice is recorded. For example, you may be asked what your main objective is to invest? Is that just capital growth or is it a necessary supplement to income? How do you react in the event of a sharp fall in prices? What loss are you willing to accept? A portion of your money or all your stake?

Bitcoin

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Securities credit

With a securities credit, your shares are given as collateral to the bank. As a result, the bank has certainty that they will get back a certain amount of the borrowed money. As long as the value of the shares is higher than the loan, nothing is wrong. However, if the prices fall and your securities portfolio is worth less than the loan, the bank can signal that money needs to be added. If you cannot deposit additional money, the bank can decide to sell the securities portfolio (in part). It is quite possible that you will be left behind with a considerable loss.

How much can I borrow to invest?

How much can I borrow to invest?

This depends on your personal situation. First of all, your spending space is important. Are you single or do you have a family? What is your source of income? Payroll service, benefit or benefit? Do you have a rental house or a house for sale? Does your partner also have income and is this calculated to apply for a loan? If you have a large spending margin, the interest on the loan can be low (5%). If it is less easy to pay off, the bank runs a higher risk. You have to pay a higher interest rate that can rise to more than 10%.