You need to know this before you borrow for the first time

 

It can be a bit of a upset when you first have to go out and borrow money. There is a lot to control, so the tongue must be held straight in the mouth. The many new foreign words and the conditions of the loan providers can seem complicated. But don’t worry.

Take the time to understand it all, it will also benefit you later in life as almost no people come through life without borrowing money at some point. Here we review everything you need to know before you borrow for the first time, and give you some good advice along the way. Then you are well equipped for your first loan!

What is a loan?

What is a loan?

It may seem pretty trivial to anyone, but it is still good to get defined. In life there are many types of private loans , we borrow both money and things from time to time – yes, will even borrow each other. In this post, we will review loan money, the first time you have to borrow and borrow from an official loan provider.

Does it cost money to borrow money?

Does it cost money to borrow money?

Yes, it does as a starting point. This may sound absurd if this is your first time going out and borrowing money from family and friends. But the fact is that those who are going to lend you the money don’t know you, so why should they lend you something if they don’t get it?

Fortunately, there are several loan providers that offer you to lend you money for free the first time you borrow from them. However, there are certain limitations on these loans in terms of how long you can borrow the money and how much money it is possible to borrow.

Loan money for free on your first loan

Loan money for free on your first loan

Some loan providers offer you to borrow for free the first time you borrow from them. Note, however, that there are certain limitations to these free loans.

Borrow up to 3000 and 4000 USD for absolutely free for up to 30 days.

If you need a little more money, lender offers up to USD 10,000 for free. Here, the money must be repaid within 60 days. See more on interest-free loans. These loans are called  quick loans , and you can find all of the above providers when using our loan calculator.

Loan money from a family member

Loan money from a family member

The good thing about borrowing money from family and friends is that they often do not require interest and fees. And if they do, it’s often a very small and advantageous amount. Between family and friends, you often borrow things and small amounts of each other in a completely informal way. i.e. without a written contract. You can do this because you know each other well and trust each other.

If you need to borrow large or medium amounts from a friend or family member, it is a good idea to make a written contract between you. If you later disagree about something about the loan, you can always refer to the written agreement and keep each other in mind what the agreement really was. A written contract for borrowing money can thus save many friendships. Moreover, you can use it if you disagree that the conflict should go as far as in court.

Borrow money with reason the first time

Borrow money with reason the first time

When you need to borrow money, it is important that you are realistic about how much is needed to borrow and when you will be able to repay the money. Therefore, make a budget and set aside money when you can. You are wise to put the funds in a separate account so that you do not spend them because you forgot about repayment.

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