What is a credit? A credit is another name for a loan. With a credit, the lender lends an amount to the borrower. He pays interest as compensation for the loan. The loan must always eventually be repaid. There are many types of credit. On this page we briefly discuss the types of credit that are most common. If you click on the links in the text, you will receive detailed information per credit type.
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Most used forms of credit
Revolving credit With a revolving credit (DK) a limit is determined in advance. Cash may be withdrawn up to that limit. Once money has been withdrawn, part of the withdrawn limit must be repaid on a regular basis. If desired, additional amounts can be withdrawn in the meantime, up to the original credit limit. It is also possible (often without penalty) to repay additional amounts. The interest due consists of a variable interest rate. A revolving credit is a very flexible form of credit.
Compare current interest rates for revolving credit
Personal loan A personal loan (PL) is a type of loan in which the amount, the term and the interest rate are fixed in advance. Based on these 3 factors, a monthly installment is determined, consisting of interest and repayment. Additional repayments or withdrawing extra money is not always possible, or only against payment of costs. Due to the fixed monthly term, a personal loan is a certain type of credit. The interest payable on a personal loan may be tax deductible under certain situations.
Compare current personal loan interest rates
WOZ credit The WOZ credit is a revolving credit that is only available to owners of an owner-occupied home. The WOZ value is the determining factor for the maximum loan. There is therefore no need for a valuation (and you do not have to go to the notary either). The interest on a WOZ credit is often very sharp. Because many homeowners nowadays often opt for a personal loan ( interest at PL can be tax deductible ), the WOZ credit is offered less and less.
Rent buy Hire purchase is a form of credit where the loan amount is always tied to a fixed object, such as a car. The special thing about hire purchase is that the buyer of the object only becomes the official owner of the object after payment of the last installment.
More information about hire purchase
Special forms of credit Below we describe a number of special forms of credit. All things considered, they are not real forms of credit, but rather special spending goals for the credit to be taken out.
Car financing By car financing we mean a personal loan where the money is used to purchase a car. The car is also collateral for the loan.
More information about car financing
Renovation loan A renovation loan is taken out to help pay for a renovation to the owner's home. Because the money is spent on the home, the interest may be tax deductible.
More information about the renovation loan
Residual debt financing Anyone who sells a home for an amount that is lower than the outstanding mortgage will have a residual debt. That residual debt must be repaid. How can you best finance this?
More information about residual debt financing