Is it wise to borrow money from a private person? The advertisements on the internet promise a cheap loan with a standard low interest rate of 4.5%. Within 24 hours you will receive a quote and what it costs exactly. Is this possible you ask your own? The reality is (of course) different. An interest rate of 4.5% is only charged if you borrow at least 25,000 US dollars. To be eligible for such a large loan you must have a good income and no negative BKR listing. If you do have such a negative listing, you will not be able to borrow money from a regular bank such as the Across Lender, RABO or ABN AMRO.
Negative BKR listing
Also online banks will not be able to do much with a negative BKR listing. An application for a credit at a website is usually forwarded to a lender. This bank assesses your application on the basis of your debts + your payment history. The bank can see this by consulting the large database of the BKR. All loans and credits that exceed USD 500 are recorded there. This also includes mail order orders, credit card purchases and telephone credits. The moment the bank sees that you are behind in repayments or that you have had a backlog (in the last 5 years), your chances of getting a loan are gone.
Borrow money from a private person
A random advertisement on a forum reads: I am a private lender who lends money to people who cannot go to the bank for a loan and have a negative bkr code. You will then be asked to contact us. This loan also includes two reviews that leave nothing to clarity: half a star (of 5 stars). The reason for the bad review is that the lender from the ad first asks for money before he can transfer the loan. Obviously, you shouldn't go into this. Unfortunately, it is the practice with private borrowing. The lender asks for money (kind of costs) in advance before he can process the application. The moment you transfer the money, the chance is small that you will hear from the private borrower.
A former footballer who is now a manager at a football club recently made headlines when it was announced that he had incurred large debts with private loans. Part of the debt had been paid, but a large part not yet. This part was traded to other creditors who are now going to claim the claims. Private creditors are not known for adhering to the legal rules. Borrowing privately is therefore not a good solution if you have debts.
Credit bank and mini loan
If you have a debt of a few thousand US dollars, it is best to go to the municipal credit bank . These banks are controlled by the government. You can usually also go there with a negative BKR listing. For example, the credit bank can combine all small debts into a joint loan from the credit bank. This bank also charges a lower interest rate. Do you want to save the administrative hassle and do it on your own? Then consider a mini loan . An ordinary mini loan is up to 800 US dollars. People who have a good track record can also borrow 1500 US dollars. A mini loan must be fully repaid within 30 days. So you have to estimate carefully whether you can pay back all the money within 30 days.