10 Best Consolidation Loans 2019? Is it possible to find such a statement?
On the website you will certainly find consolidation loans as well as answers to this and many other consolidation questions.
The consolidation loan allows you to “combine” (consolidate) bank loans and loans into one loan. Instead of several loan installments a month, we pay only one installment. They should also be much smaller than the sum of loan installments that we have paid so far. The reduction in the amount of the installment depends on the loan offer, the consolidated liabilities and the repayment period of the new loan.
Take a consolidation loan and pay one installment! And what’s next? Interest rate only 6.48% One light installment, instead of several in different banks. Automatic repayment of loans in other banks. The loan amount is up to € 200,000 with credited costs. The maximum loan term up to 120 months. Additional cash for any purpose. The possibility of obtaining cash up to 100 percent. sums of consolidated loans! Consolidate 30,000 euro you can receive an additional 30,000 euro
Consolidation of what is it?
In most cases, loans are used by people who are difficult to pay installments on loans taken in due time due to the deterioration of their financial situation.
A consolidation loan helps to regain financial stability as well as improve financial liquidity and increase creditworthiness.
It is a special-purpose loan, which is granted to repay loans and bank loans. It allows you to repay loans and cash loans, car loans, credit cards as well as home loans. It is based on the fact that we present bank loans and loans for consolidation, and the bank repays our liabilities by granting us a new loan. In this way, we have only one loan in one bank and we pay one installment.
With a high probability of consolidation loan, we will not receive when we stop paying installments of our existing liabilities in a timely manner. The bank will not only check our creditworthiness, but also credit history at database. Information about untimely payment of installments or their non-payment has certainly been noted.
In the best case, the loan offer will be less favorable than for positively verified clients.
When will the consolidation of loans be beneficial?
Consolidation is only beneficial if the consolidation loan has decidedly better parameters than the consolidated liabilities. It should be accurately calculated whether a new loan offer is a cheaper option – you should check the total costs of the new loan compared to the total costs of liabilities currently paid.
Note, however, that the assumption of consolidation is not to reduce the total cost of lending! The main purpose of consolidation, as mentioned above, is to regain financial liquidity and to pay a lower loan installment. Cash consolidation loans are only slightly lower than interest on loans and cash loans.
A consolidation loan is a new liability, which includes interest, commission and additional costs, such as insurance. It is necessary when comparing loan offers to pay attention to the total cost of the loan and its APRC.
In that case, how can you reduce the installment amount ?! First of all, by extending the loan repayment period. This allows you to radically reduce its height.
However, extending the loan period increases the total loan cost. The loan installments will actually be smaller, but we will pay more interest. Each subsequent month of lending is an additional interest …
It is also worth mentioning that the best credit conditions will be obtained if the consolidation is secured by a real estate mortgage. Such mortgage consolidation loans have a definitely lower interest rate.
To find out exactly how much your loan installment will be, please contact your bank. One should not use the consolidation loans calculators, because here we will not know the truth. Like looking for credit rankings …
Before making a decision on consolidation, check also that the loan agreements do not contain provisions regarding commissions related to early repayment of the loan.
10 Best Consolidation Loans 2019 and rankings
And only now do we go to the heart of the case and answer the question: why there is no such thing as the 10 Best Consolidation Loans 2019, as well as there are no objective loan rankings.
First of all, all sorts of statements and rankings are created for specific orders. It is possible to manipulate the factors by which we set the ranking in any way, so that the list of the TOP 10 Best Consolidation Loans would be the first selected bank in the first place.
The final credit offers depend on:
- assessment of our creditworthiness and credibility – the better the rating, the better the credit terms.
- the loan amount and the loan period.
- choosing the installment system: decreasing or permanent.
- the date of loan payment and payment of the first installment.
- on our negotiating skills – the terms of each loan can be negotiated with the bank.
Additional information on consolidation loans can be found in the article: Ranking of Consolidation Loans 2019