Consolidation loan – is it worth it? When consolidation loan pays off? Is always consolidation a good choice? What loans can you consolidate? How banks settle early repayments and what to keep in mind. Today, we will try to provide you with the necessary information to make the right decision regarding the consolidation loan.
Let’s start from the beginning …… what is a consolidation loan and who can apply for such a loan?
A consolidation loan is an ordinary cash loan with the purpose of repaying other loans. The conditions for obtaining a consolidation loan are exactly the same as for cash loans. The applicant must present a work certificate on the income received and have a good credit history – the bank assesses the creditworthiness of the client and verifies the BIK and BIG databases. If the bank’s decision is positive, it remains only to sign a contract. The bank usually does not require any securities or guarantors, and the loan can be spread even for 12 years.
Consolidation loan – is it worth it? so what will we gain thanks to consolidation?
FACT 1: A consolidation loan for the repayment of other liabilities such as loans, credit cards, account limit is an ideal solution for every person who has a problem with the timely repayment of their obligations. Thanks to consolidation, instead of, for example, five installments a month, we pay only one installment, which is significantly lower – thanks to which many people can regain financial liquidity in this way.
FACT 2: A consolidation loan allows you to reduce the installment by as much as half – how is this possible? Mainly by extending the repayment period. Consolidation loans offered by most banks are available for up to 12 years. By extending the repayment period you can get a much lower installment.
FACT 3: A consolidation loan is cheaper than a regular cash loan and this is because the larger the loan amount, the better the loan conditions. Most banks offer a lower interest rate on a loan that exceeds a certain amount, as a rule, a ceiling of approximately PLN 40,000. Thus, if we combine several smaller loans into one larger one, we will obtain preferential loan terms, in other words a lower interest rate on the loan during the entire duration of the contract.
FACT 4: One credit insurance instead of a few also allows you to minimize costs and due to the early repayment of loans, which we consolidate, we must refund part of the insurance for the “unused period”.
FACT 5: A consolidation loan is definitely cheaper than credit cards and renewable limits.
FACT 6: Taking a consolidation loan, we can apply for additional cash for any purpose.
FACT 7: Thanks to the consolidation of loans and lowering the installment, we gain a greater creditworthiness, so we have a chance to get an additional amount of cash at any time.
Consolidation loan – is it worth it? summary – is a consolidation loan always worth it?
In most cases, when we have several loans, converting them into a consolidation loan will be profitable. Even if we do not want to extend the duration of the contract, we will be able to get a lower installment by lowering the interest rate or refunds from the loan repayment insurance. In addition, if someone needs cash, it probably will not be a problem.
Consolidation loan – a loan offer at Credit Bank
The consolidation loan in Credit Bank is a transparent policy and the certainty of obtaining the best offer from among all banks available on the market. Our advisers provide expert knowledge and experience. We invite you to familiarize yourself with our offer.