Are you considering to take out your loan or to combine several loans? Then pay close attention to the conditions and any costs (penalty interest).
Here are tips to wisely (and merge) your loan (s):
Do the costs of relocation outweigh the financial benefit?
A (somewhat older and longer-term) personal loan is often not repayable without penalty. Check this carefully in the conditions. If you have to pay a fine, determine whether or not you will ultimately be more profitable when transferring. At From Good Credit you can always repay your personal loans without penalty.
A short duration is usually cheaper
An additional advantage of refinancing your loan is to shorten the term. With a shorter duration you can pay off quickly. After all, the duration is shorter and the interest is lower. In the beginning, the monthly installment will be slightly higher due to the shorter duration than with your old loan.
But because the loan is being repaid at an accelerated pace, this amount drops quickly. A loan with a short duration is therefore always cheaper.
Easy acceptance of the same loan amount
When lending a loan, the lender reassesses whether you can get the credit. Information is requested from the BKR about your payment behavior.
In addition, the bank reassesses your application / loan based on your current current income and expenses. If you borrow the same amount (only the highest amount), chances are that you can transfer without problems.
Note: with a small loan, often higher interest
Do you have several smaller loans? Good to know that you usually pay a higher interest rate for smaller loans than for larger consumer loans. The best way to save money on all those small loans is to merge.
It is possible to combine various types of loans. Think of a personal loan, credit card debts, revolving credit and a bank overdraft. Mail orders or store credits are also common credits.
With merging you borrow a larger amount with which all small loans are repaid. There are countless advantages: lower costs and therefore lower interest rates, shorter duration and much more overview. Do check well if there are costs involved, especially with personal payday loans.