Problems with borrowing money
Frequently Asked Questions
- What is the interest rate for overdrafts at Rabobank?
The interest that banks like Rabobank charge for overdrafts varies from 8% to 15%. The exact interest depends on the maximum amount that you can be overdrawn at Rabobank. Rabobank offers the option of being overdrawn to absorb temporary fluctuations in income. But research by the AFM shows that many consumers see overdrafts at banks like Rabobank as a structural supplement to their income. Due to the high interest rate, being in the red is one of the most expensive forms of borrowing money.
Do you still want to pay extra financial reserves but less interest? Instead of being in the red via, for example, Rabobank, we recommend a revolving credit. A revolving credit offers you an extra reserve, just like an overdraft with Rabobank, but at a much lower interest rate. The minimum interest rate for a revolving credit via the Dutch Credit Company is currently 3.5%. Go to our revolving credit page for more information about taking out a revolving credit and the associated interest or read the article ' Being in the red at banks is expensive ' about being in the red at banks such as Rabobank.
- The difference between a Personal Loan and Revolving Credit
The main difference between these loans is the degree of flexibility. Thanks to the variable term and interest, a Revolving Credit is more flexible than a Personal Loan. However, a Personal Loan offers more security. Because the term and interest are fixed, you know exactly where you stand. In addition, the loan amount with a Personal Loan is deposited into your account in one go. With a Revolving Credit you get access to extra money, but you decide how much you transfer to yourself. In general, we say that a Personal Loan is a good fit if you have a specific loan purpose. A Revolving Credit is a good option if you are looking for financial support.
- How do I pay off the combination credit?
You pay a fixed amount in interest and repayment every month. For the Personal Loan, you determine in advance within how many months you want to repay the loan. The term varies from 6 to 180 months. The term of the Revolving Credit is unlimited. You decide when you pay off this part of the Combination Credit. Do you want to make extra or faster repayments in the meantime? This is always possible and often completely free of charge.
- Can I borrow money with debt?
Borrowing money with debts is sometimes possible; the debt is a debt in the form of a loan or credit and it depends on your personal situation whether a new loan is justified. The debts may not be payment arrears with authorities.
You cannot apply for a loan with a negative BKR code . Request a quote without obligation and find out within two working days whether you can borrow money with your debts.
- My municipality does not offer an SVn stay loan. Can you help me?
Yes, if your municipality does not offer a permanent loan, you can always contact us. For a personal loan or a revolving credit. Are you over 60? Then we have the revolving credit 60+ and the personal loan 65+ especially for you. If you choose a personal loan to make your home future-proof, the loan is usually tax-deductible.
- How long is my quote valid?
How long is the quotation submitted to me valid? Our four partner banks each have their own term.
The validity period of the contract per bank:
You request a quote online, you make a choice from the proposals of our partner banks and the detailed contract you receive from us is then valid within the specified period.
Does the bank change the interest rate, to a lower percentage, within this period and has the loan not yet been taken out? Then we will adjust the interest on your contract. Keep a close eye on the validity of the quotation so that you do not have to pay higher interest in the event of an interest rate rise.
- Can I borrow money over the age of 75?
No. It is not possible to borrow money if you are older than 75 years. In addition, all existing loans must be paid off before your 75th birthday.
It is no longer possible to take out a revolving credit after your 60th birthday. In most cases it is still possible to take out a personal loan until your 72nd birthday. Taking into account that the loan must be repaid before you turn 75.
- What is the BKR?
A BKR check when applying for a loan or mortgage - you have probably had to deal with that. But what exactly is the BKR and what does a negative or a positive BKR registration entail? Find out in this Question of the Month.
What is the BKR?
BKR is the abbreviation for Bureau Krediet Registration. This is a foundation that charts all loans taken out in the Netherlands. The aim of the foundation is to contribute to a financially healthy society through this registration. Every lender in the Netherlands is obliged to register credits from 250 us dollar with the BKR. The Dutch borrow quite a lot: there are more than 11 million credits registered with the BKR. This includes mortgages and private leases, but also less obvious loans such as overdrafts on your checking account and credit cards.
A BKR registration does not always have to be disadvantageous. What types of BKR registrations are there and how do they affect your options for obtaining a mortgage or loan?
Positive BKR registration
Do you have a positive BKR registration? Then you are officially a 'financially healthy' consumer. A positive BKR registration means that you have taken out one or more credits, but that there are no payment arrears. You always pay your bills and monthly installments properly. That is why you will not have any problems applying for another credit or mortgage.
Negative BKR registration
It will be a different story with a negative BKR registration. If payment arrears arise, you will receive a negative BKR registration. For a lender this means that you are not (always) financially healthy. The so-called arrears code (A-code) of a negative BKR registration also remains for a long time: up to five years after you have repaid your credit or made up arrears. Such an A code has negative consequences for taking out a mortgage.
A negative BKR registration: mortgage impossible?
It depends on. The higher the loan registered with the BKR, the less you can borrow for your mortgage anyway. Are there payment arrears on your loan? Then you will receive an A-coding. This is linked to a specific number and the higher this number, the heavier your negative BKR code counts. This makes it difficult to take out a mortgage or Personal Loan , but not yet impossible.
What can you do with a negative BKR registration?
Step 1. Statement. Do you have a negative BKR registration, but have you been out of financial trouble for a while? You can prepare a statement explaining clearly and logically why you got into trouble at the time. In this statement, you also provide a well-described situation outline showing that a repeated chance of financial problems is small. Even though everyone with a negative BKR registration is considered equal, such a statement can still help to get a mortgage.
Step 2. Pay off loan | Recovery code H. You must then be able to demonstrate that the loan (on which the payment arrears) has been paid in full.
Another option is a recovery code; you pay the arrears and thus get back on schedule with your payments. Then the letter H is added to the negative coding. This H can have a positive influence during your mortgage application.
BKR: Prevention is always better than cure
We keep reminding our customers: when it comes to your good money, preventing a negative BKR registration is always better than 'cure' it.
Do you still want to borrow money? There is nothing wrong with that in itself, as long as you can bear the financial obligations properly. With a financially healthy position you certainly increase the chance of a positive BKR registration. For those who borrow money responsibly for a one-off necessary expense, or to invest in themselves, a loan can certainly be useful.
Want to know more about what is and what is not registered with the BKR?