You suddenly need 5000 USD, for example for a new or used car. Or perhaps you just have a new apartment but no bedroom yet; that too can cost a few cents. You may start a new study and you must be able to deposit your tuition fees. You do not have such a lump sum, so you will have to take out a loan. Nowadays there are as many credit providers as loans on the internet. Now get the cheapest out.
Cheapest way of borrowing
The cheapest way of borrowing is of course with your parents or friends, but that can also cause tension. Borrowing 5000 USD is not nothing, and they too have their wishes and duties. It is not always a good idea to put someone you care about in front of you. A better solution might be to take out an ’emotionless’ loan with a financial institution. Because a lot of credits are taken out online, the competition is fierce – but not for your portfolio.
With all those providers in the market you can quickly determine who uses the best rates. You can see at a glance who offers the lowest annual percentage rate (APR). Please note: check whether it is probably an entry level promotion. This means that, for example, a displayed APR is only valid for 3 months before increasing by 1%. So don’t walk in there and do your research. The lower the APR, the cheaper your loan. In addition, every bona fide money provider has received a permit from the Belgian government; you should also check that.
Now the fun work: playing with the loan simulator. Every lender today has a simulator tool on his website. You can use it for free to determine your monthly repayments. You enter the loan amount and the term and – hey presto – the payment amount scrolls along your screen within a few minutes. Experiment with every provider with different amounts and durations, and see what the best deal is for you. Your monthly repayment depends on the loan amount, the term and the APR.
The shorter the duration, the lower your costs.
To borrow 5000 USD you can take out a personal or revolving credit. With a personal credit you receive the money in one go to your account, the term is fixed and you have to choose between a fixed or variable interest rate. Tip: now that the interest rate is so unprecedented, it is smart to choose a fixed interest rate. Then you will not be faced with any surprises and your monthly payments are always the same.
A revolving credit has a variable interest rate because it has no maturity. You can always withdraw the money whenever you want. The costs are usually somewhat higher than for other loans, but if you do not withdraw, you do not pay any costs. With the interest rate at the lowest level ever, this is the perfect time to borrow 5000 USD cheaply. Get started soon.