The traditional loan with fixed repayment terms and a fixed interest rate, that is the personal loan. The loan usually has a higher interest rate than a revolving credit. But the interest is fixed, and with this, this loan form offers much more certainty than a revolving credit.
For example, should the interest rate of the EB rise unexpectedly and banks go along with it, then you don’t have to pay more interest yourself. Because the interest is fixed.
A disadvantage of the personal loan is that lenders do not allow them to repay the loan early without paying a fine. They do this to prevent you from applying for a cheaper loan from a competitor to repay the loan in one go. However, this is possible with a revolving credit.
Personal loans are very popular, but not as popular as before. Nowadays, more people take out a revolving credit. There are also many banks that really only want you to take out a revolving credit.
Because with a revolving credit in their back pocket, people are more likely to borrow more money than they actually need. There are also many people who never repay their revolving credit. That is why banks earn more from the revolving credit than from the personal loans.
Do you have the idea to buy something big and are you considering taking out a loan? Then a personal loan is suitable for this. There are, however, many lenders and it is good to compare these with each other. You can go to budgetcash for a good overview to compare the interest and costs of personal loans.
Personal loan with a negative BKR
You can also apply for a revolving credit with a negative BKR registration, for example to refinance your debts. You can request a loan with a negative BKR registration from the lenders below, as long as you do not currently have a backlog with the BKR.