Borrowing money costs money, how much exactly?

You have probably heard or seen it on television, internet and radio: borrowing money costs money. An important warning that you must take into account when you take out a loan.

Are you sufficiently aware of the extra costs associated with borrowing? Credit Savers is happy to explain what you should pay attention to if you decide to take out a loan.

Credit Alert

You know the black doll with a red euro sign attached to his leg. The warning was created by the Netherlands Authority for the Financial Markets (AFM). Since 1 April 2009, credit providers have been required to warn consumers about the financial consequences of borrowing. By means of the warning slogan ‘Attention! Borrowing money costs money ‘, they want to raise your awareness about the possible consequences of borrowing. Yet it appears that this credit warning does not stop most people from taking out a loan. When you want to take out a loan, it is useful to delve into the different types of loans and the costs involved. Credit Savers is happy to help you with this.

Tips for responsible lending

Tips for responsible lending

When you decide to take out a loan, for example to finance a renovation , you enter into a financial obligation for a longer period of time. A high amount in one go into your account may give you a good feeling, but does repayment also give you that feeling? No, repaying is less, but it must really happen. If you do not comply with the obligations for repayments, you will encounter even greater problems. Are you planning to take out a loan? 

The loan must ultimately be repaid in its entirety, including interest. Can you bear the costs for this? Suppose something changes in your income, can you continue to pay off? Not sure if it’s sensible? Then you better not do it. 

What do you need the loan for? How much money do you need to pay for this? Never borrow more than necessary, however attractive it may seem. AVOID OFFERS such as ‘BUY NOW AND PAY LATER’

No matter how attractive it sounds, the same applies when buying on installment: borrowing money costs money. You often pay much more interest than with a regular loan. GO COMPARE

The market for credit providers is large. It is therefore not wise to just take out a loan somewhere quickly. Find out which credit providers use the lowest interest rates and request quotes from them. Take a good look at the conditions and make sure that the credit providers that you approach are in possession of an AFM quality mark. 

Are you still paying off a loan? Then make sure you have repaid this first before you take out a new one. Otherwise you may be working yourself into problems.

Be sure of your choice

Borrowing money costs money, that is clear. It is wise to compare the different credit providers and not to make hasty decisions. Credit providers advertise their services a lot, in a way that is very positive. No matter how beautiful and perfect it seems to be going to borrow, every provider has its own terms and conditions. There is always small print, important information about conditions that you would like to know about before you work with a provider. Do you find it difficult to delve into loans because you have little knowledge of financial matters? Then you can always first ask advice from an expert. It is important that you are sure of your choice.

Consumer protection

Consumer protection

The central government protects consumers when it comes to borrowing money. For example, lenders are required to provide you with sufficient information about the credit before you take it out. For example, you must be aware of the type of loan, the loan amount and conditions. Thanks to the rules applied by the national government, you can easily compare offers from different lenders.



  • You can terminate a credit agreement within 14 days after you have concluded it.
  • The costs for early repayment of a fixed-term loan are limited.
  • Are you suffering because the lender informed you too late? Then you can recover the damage from the lender.

The maximum interest

When you have taken out a loan, you pay interest on it. The maximum annual credit payment is 12%, in addition to the statutory interest. This is 2%. The maximum credit compensation that a lender may ask you is therefore 14% per year.


Borrowing money costs money, so it is important that you have sufficient financial resources. A steady and secure income ensures that you have income every month and can repay the loan according to plan. If you want to take out a loan, your application will always be tested at the BKR. Credit Registration Office will register you when you have taken out a loan, this is called a positive listing. If you do not meet the payment obligations, this will be converted into a negative BKR listing. This means that you may no longer take out any loans in the future, simply because the risk is too great that you will not repay the loan (on time). Before you take out a loan, it is advisable to see how you are registered with the BKR and what the consequences are for your credit application. In 90% of the cases it concerns positive registrations without payment arrears. You can request your details from BKR, after which they will send your details by post. That way you know whether problems may arise during the credit application. 

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