Do you have a current loan but do you want to increase your loan during the term to create extra spending room? Credit Saver is happy to tell you more about the possibilities.
Increasing a personal loan
Whether or not you can increase your loan depends first and foremost on the type of loan. If you currently have a personal loan, it is not possible to increase it. At the start of the loan you made agreements about the amount to be borrowed, the term and the interest. This agreement cannot be broken to increase your loan.
Taking out a new loan
There are, however, other options for borrowing more money, such as taking out a new loan. Whether it is possible to close a new one depends on a number of factors. Your current loan is registered with the Credit Registration Office. This is required by law in the Netherlands by the AFM (Financial Markets Authority). A new lender will review your loan application at the BKR . Have you had problems paying your loan and have you had payment arrears? Then there is a chance that you have a negative BKR listing. In that case, a new loan is a big risk for a new lender. With even more debts, the chance is smaller that you can pay off this loan. If you have always repaid properly, your BKR listing is positive and actually proof of good conduct. In addition, the lender will examine whether it is justified to grant you a new loan while your old one has not yet been repaid. Of course your income is also important, as is the income of your partner if you live together or are married. In addition to the level of your income, the stability of this income is also considered. Do you have a permanent contract? Then the risk for the provider is lower than if you have a temporary contract. Certainly if you both have a fixed income, you can borrow more. You are both responsible for paying off the loan, so two salaries ensure more stability and security. In addition to your income, your housing costs are also important. When applying, you must then, in addition to a copy of your salary specification, also send a copy of an account statement clearly stating what you are paying for the basic rent or mortgage. The remainder of your loan is not unimportant if you want to borrow extra money while you already have a loan . How much of the total do you still have to pay off? This is also important for the amount that you can borrow.
Increasing a revolving credit
Do you have a revolving credit that you have already fully used? Then you can contact your lender to increase your limit. You can ask yourself if this makes sense for your situation. Do you still need the flexibility of a revolving credit or do you need a fixed amount now? A revolving credit has a variable interest that is usually slightly higher than the interest of a personal loan. You can also take out a new loan that then runs alongside your current loan. The same applies here as described earlier in this article.
The refinancing of your loan
Another possibility is to transfer your revolving credit or personal loan and then borrow a higher amount. You can then choose a revolving credit or a personal loan. To what extent this is also the most cost-effective option depends on various factors. With early repayment of a personal loan you usually have to pay a fee for the income from interest that the credit company misses out. The amount of this fine depends on the remaining term of your loan. It is best to first calculate whether a new loan is cheaper because the interest is lower. In your calculation you must also take into account the penalty for early repayment. If you have a revolving credit, you can repay it without any problems. You do not have to pay a fine.
And free consultation
Do you find it difficult to calculate whether it is advantageous for you to take over your loan instead of increasing your loan? Then with some lenders such as geldshop.nl you can also use the option for a free consultation. You will then be called by a financial adviser with whom you discuss not only your wishes but also your financial situation. This way, the consultant can form a good picture and map out your wishes. Calculations are also made to see what is the most advantageous option in your situation. We look at the best choice for you: a personal loan or the flexibility of a revolving credit. A customized quotation is drawn up on the basis of this financial picture. You only take out the loan when you place your signature. The consultation is therefore not only free of charge but also without obligation.
Borrowing money, costs money
Keep in mind that in each of these situations, whether you choose to increase your loan, transfer a new loan or refinance your loan, your monthly expenses will go up. Borrowing extra money, in whatever way, means that you also have to pay more, including interest. Perhaps the interest on your current loan is a lot higher than the current interest, which makes it advantageous to take out your loan. In that case you can take advantage of this and your monthly payments will increase less sharply than when you take out a new loan.