Comparison of consolidation loans. Do you have several bank loans and loans? You pay the loan for the car, the loan for the washing machine, you still have a cash loan and debt on the card? Too many repayment dates, and the sum of installments has already grown to a critical height, not allowing you to think about other urgent expenses?
Before you decide on a non-bank loan and over-indebtedness, maybe it is worth considering debt consolidation?
Consolidation Credit Report
At this point, it is worth asking a question and explaining exactly: why do you need to consolidate your loans ? Is it not enough to pay off several loan installments a month on different dates? Well, probably not always, as it was presented above. Is this another loan? Yes. But it can be the only one.
First of all, remember that consolidation gives us the opportunity to combine several loans and credits into one loan, which is called a consolidation loan. Bank loans and loans are subject to consolidation, therefore it is not possible to consolidate non-bank loans here.
First of all, a consolidation loan is a smaller loan installment. Marta Nowakowska, Blog Consolidation Loan Expert: ” A consolidation loan is becoming an increasingly popular product offered by banks. This is a good solution for people who want to lower the amount of installments paid. “Instead of several loan installments, we have only one and then adds:” it is lower than the sum of installments that we have paid so far. The monthly charges for installments will be reduced. “
How much will credit installment amount?
The reduction of loan installments and its amount depends on:
- loan repayment period,
- interest rate,
- the bank’s credit offer.
How much exactly will the loan installments be found only after examining our creditworthiness and creditworthiness in the bank. That is why it is worth contacting the bank and check which installment you can count on.
Remember that no comparator for consolidation loans presents accurately calculated installments. It may be turning off the credit simulation and the installment will certainly differ from the one proposed by the bank.
Please note that each bank puts information (with such or similar content): The final loan terms depend on the client’s creditworthiness, loan payment date and payment date of the first installment. Calculator calculations are estimates and do not constitute a credit offer within the meaning of art. 66 § 1 of the Civil Code. The same is true when using a financial and credit comparison engine.
Mortgage and cash consolidation loan
There is no single consolidation loan that would be appropriate and best for everyone. In what amount and under what conditions we can apply for such a loan, depends, among other things, on our creditworthiness, creditworthiness, bank offer and products that we intend to consolidate.
We have already said that non-bank products are not subject to consolidation (cash loans in loan companies), but we can consolidate loans and borrowings:
- other consolidation loans,
- debt in credit cards and bank account.
You can use a consolidation loan if you have several loans and one. In several different banks, as well as only in one.
When a mortgage is also subject to consolidation, we are dealing with a mortgage consolidation loan. Otherwise, we are talking about a consolidation cash loan.
Consolidation of loans simultaneously improves our creditworthiness, which is why banks very often offer us as a part of a consolidation loan additional cash, which can be used for any purpose.
CONSOLIDATING CREDIT SUMMARY:
1) A consolidation loan is a consumer loan that you take to pay off other bank loans and loans.
2) The bank repays your debts in other institutions, converting them into one loan – the so-called consolidation loan.
3) The consolidation loan allows you to organize your finances.
4) Taking a new loan, you extend the repayment time.
5) Credit consolidation is a smaller monthly installment.
6) The downside of the consolidation loan is certainly a longer loan period, and this means a higher loan cost (you repay the bank more interest).
7) When deciding on a consolidation loan, make a calculation of costs, taking into account: interest rate, commission, potential insurance.
8) When using cash under such a loan, consider whether you actually need it or only increase the value of the installment paid.
9) The best consolidation loan? The cheapest consolidation loan? You will not find one. The detailed terms and conditions of the loan offer depend on the individual assessment made by the bank. The better your rating in the bank’s eyes, the better credit you can count on.