Borrow cheap money at a low interest rate.

A huge number of lenders nowadays advertise with low interest rates. The interest is then, for example, 2% lower than at a bank. However, providers often 'forget' to state that the stated interest is an action interest. In many cases, this starting interest applies for only one or two months, after which you pay a higher interest. In reality, it does not always have to be cheap to borrow 'cheaply'.

This is why you should pay close attention to a number of things. The monthly repayment and term is one of them. A low interest rate with a longer term does not necessarily have to be more advantageous than a higher interest rate with a shorter term. A low interest rate may be attractive, but do not forget to compare it to the term of the loan. In many cases, cheap loans also include (extra) insurance as part of the loan. In most cases it concerns a so-called term life insurance. You pay extra for this insurance on top of the interest on the loan. With many cheap loans, such extra insurance can be considered mandatory.

As mentioned, many loan providers advertise low interest rates. In many cases, it turns out to be only an action interest rate that later turns out to be a variable interest rate, so that over time you will pay a higher interest rate than advertised. Many lenders also advertise a special offer, or rather; decoys.

For example, you can receive free gifts, such as a camera or coffee maker, which later turn out not to be free at all. A lender can recoup the gift by charging a higher interest, closing fee, or term life coverage for the loan.

Nowadays you can borrow money cheaply through the mini credit or the mini loan. You then borrow an amount under € 1,000, which you must repay within a month. This is especially useful when you need a small amount within a short period of time and have the money to pay it back quickly. However, a mini-credit does not have to be cheaper as advertised. If you do not pay back within the term, you may pay a high fine or the interest may be quite high.

For your own safety, your payment history will be checked at the BKR . All credits between € 500 and € 12,500 with a minimum term of three months are registered with the BKR . Certain mobile subscriptions are also registered. When you have payment arrears, you will receive a negative BKR listing. It then becomes more difficult to apply for a new loan, to protect you from falling further into debt. Lenders of the cheapest personal loans often do not do a BKR check. This means you are not protected against yourself and you therefore run the risk of falling deep into debt.