If you want to borrow money for your furniture, you can choose between a personal loan or a revolving credit. With a personal loan, you can borrow a fixed amount at a fixed interest rate. This way, you know in advance exactly how much the loan will cost you. Because the term is also fixed, you also know exactly when you repaid the loan. It is an ideal loan if you know exactly how much money you need. Want to know more, then check out this website about lenen zonder BKR.
But when you are furnishing your house, you often do not know exactly what the total costs will be. A revolving credit is then more suitable. You then agree on a credit limit with the lender. Up to that limit, you can withdraw and repay unlimited amounts of money. You only pay interest on the part that you have actually drawn. Do you need more? That’s okay! You can withdraw repaid amounts again.
Tip 2. Beware of furniture on credit
At many furniture shops and mail order companies you can easily buy your furniture on credit. This may seem interesting, but is often very expensive. The interest you pay is much higher than at a bank or credit company. So don’t fall into this trap!
Tip 3. Discount loan furniture house owners
If you have bought a house, you are eligible for a loan for your household effects with lower interest rates. There are lenders who offer discounts for homeowners. Please note that sometimes stricter conditions apply!
Tip 4. Determining the term of a furniture loan
If you are going to take out a personal loan for furniture, you will agree on a term with the bank. Before the end of this period, you must have repaid the loan in full. Because if you have a longer term, you repay the loan over a period of several months, your monthly costs are lower. So it seems attractive to choose the longest possible term. However, because the loan lasts longer, you also pay interest for longer. As a result, your loan will eventually turn out to be even higher. Therefore, always choose the shortest possible term with monthly charges that you can bear financially.