Loan: everything you need to know about borrowing and credit!


Taking out a loan, nowadays it’s all easy via the internet, but there is still a lot involved. The application itself must be in order, the data that you send must be complete. Are you in order to apply for a loan? It is not only sufficient to be of age. What else do you need to know about borrowing and credit.

You must be at least 18 years old to apply for a loan.

You must be at least 18 years old to apply for a loan.

But since you have to pay back the loan, you must also have a fixed income. An interim or temporary work does not always provide a sufficient guarantee for a bank. They want to keep the risk as low as possible and to be sure that you can pay back the loan. That is not only to their disadvantage, but also to your disadvantage. Then you get the stamp of defaulter and you end up in a database. All banks see your data there and can refuse you a loan if you want to apply for it in the future. So pay close attention to this and put yourself in trouble.

Your income is therefore important, a permanent job where you have been active for several years is ideal. Your spending also plays along for a bank. Jr cannot spend your full wage on loans. That is an endless street, so you will never get out of it. The banks have a rule that you do not learn that you can borrow 40% of your income. If you already have other loans, then you should definitely mention that bike in the application. Then a bank can calculate how much you can take to borrow. Alimony also counts in that calculation. So if you still have to pay alimony for son or daughter, then you should also state this. This can prevent you from getting a new loan. You can always make the calculation yourself. If in doubt, please contact a bank.

If you do not have to pay a loan or alimony, there should not be any problems. If you can present a wage slip to prove your income, a bank can process the application. That certainly does not take long, sometimes you already have a confirmation in one day. If you are in a bank branch, you can often already receive confirmation at the time that a loan is possible. A loan is only a feut if both parties, you and the bank, have signed a contract. So think carefully before you place your signature. By the way, you make a commitment for a few years and you have to provide a monthly repayment.

Applying for a loan is usually about money reserves.

Applying for a loan is usually about money reserves.

If your guy is low on cash for a moment and you want more room again, you can apply for credit at many banks. Here the costs or APR may be higher and you therefore end up with a lot more costs than you borrowed. But sometimes it is necessary to have a cash reserve. You can solve sudden expenses that you cannot pay yourself with a credit.

We all borrow, if it is not for a car or a house, then it is for small electrical appliances or a renovation loan. Even though Belgians are known to be good savers, the loans that are taken out daily are hard to keep up with. It is an easy way to make your dreams come true. And if you can handle it responsibly, then a loan can be called safe. You just have to include the costs. But you can do your best to find the cheapest loan. You do some loan simulations and before you know it you have found that one bank with nice conditions. No more waiting and just applying.

Thanks to a simulation you can already see how much a loan will cost you without obligation. On how much time you can pay off a certain amount. You can choose to take a long or short term. Short means less costs but a high monthly payment. Here you have to make your own choice and consider what your budget can handle. Don’t make it too difficult for yourself and choose the happy medium.