A consolidation loan completely online, over the internet and without having to visit a bank branch? It is possible? Not always, but still…
New loan to pay off other loans? Can we repay the loan with a new loan? After all, the worst solution is to take out new loans to pay off the existing liabilities. This can lead to falling into the “debt loop”… Not necessarily, it must be so.
If we have too high loan installments and want to reduce them, by combining loans (consolidation of loans), then this is a rather good solution. Similarly, when we borrowed money in the bank a few years ago, with a fixed interest rate, and when the nominal interest rate was 16-25%. What is the loan? The new loan is a consolidation loan.
Well, what exactly is the consolidation of loans and credits? In short, it is a combination of several bank loans or loans with one, new loan, which is granted for a longer period of time. We are taking out a new loan with which the bank repays our liabilities, which we presented for consolidation (based on contracts). In this way, instead of several loans, we have only one loan, and the installment is less than the sum of the installments that have been paid so far. A loan installment may be lower for two reasons: a lower interest rate on a consolidation loan (compared to current loans) and a longer repayment period.
Consolidation is a good solution especially in a situation where we want to regain financial stability, shaken by paying high loan installments. There is one “but”. If we stop paying installments, we have little chance to get such a loan! Not only consolidation, but also everyone else. Even the smallest cash loan! It is therefore necessary to apply for such a loan when we regulate debt in a timely manner. Banks, when deciding whether to grant a loan, will take into account both our creditworthiness and creditworthiness (they will check our credit history at database).
The most common form of consolidation loan that we use at the bank is a cash consolidation loan. Mostly, the bank does not require additional collateral, but of course, it may happen that, regardless of the amount requested, it may ask us for additional security, such as bailing other people. The vast majority of banks provide consolidation loans in the traditional way: a loan application must be submitted in person at a branch of a selected bank.
When reviewing loan offers, you can now “catch” offers of online consolidation loans. Currently, however, there is no 100% of online consolidation loans. A fully online loan is a loan that we ask for without leaving home.
Yes, we can submit a loan application online, but the loan agreement is signed either by courier who delivers the contract (and the payment is made only after the documents have been received by the bank) or at a bank branch.
And where is the easiest way to get such a loan? It all depends on our creditworthiness and credibility. As in the case of cash loans, in this case, if our scoring is high, the loan will not be a problem in any bank.
After all, if we are thinking about consolidation in the future, it is worth checking bank offers from time to time. Perhaps we will find such a consolidation loan completely online…