A change in your personal or financial situation may mean that the loan that you took out at the time is no longer sufficient. The interest rates may change during the term of your loan. The interest rate is currently at a historically low level, so the chance that you can save on your loan after re-transfer is high. Read our tips on how you can easily transfer your loan.
Payday Loan: how does that work?
A revolving credit is most often taken over. This is because this type of loan is often arranged side by side with often too high interest rates. In addition, the interest is variable and you have no real reduction in your loan.
Do you currently have a personal payday loan? Most consumers take out their personal payday loan if they want to increase the amount of the loan, combine several loans or opt for a lower interest rate.
If you take out your loan, you borrow money again to repay your old loan. Only your new loan has a lower interest rate and probably better conditions so that you are debt-free earlier.
Top 3 reason for rescheduling
- 1. Save on interest
- 2. Pay off faster
- 3. Increase the amount for financial space
Short duration cheaper than long duration
In addition to the interest benefit, you can also refinance your loan to make the term shorter. With a shorter duration, you pay interest over a shorter period. You pay off faster, so the amount on which you pay interest falls faster. With a longer term, the monthly amount to be repaid is lower. But in the end you are more expensive because you pay interest for longer. A loan with a short duration is therefore cheaper in some situations.
Borrow the same loan amount: often favorable
If you refinance your loan, the lender will re-evaluate whether you will receive the loan. The lender looks at your payment behavior by checking with the Credit Registration Office (ABC). In addition, she looks at the total outstanding loans. They may never again be the responsible credit maximum that you can borrow based on income and expenses. If you borrow the same amount, not an additional amount, there is a good chance that the new lender will accept your loan. Most lenders have roughly the same acceptance conditions.
Save by merging loans
Do you have multiple loans with different companies? Then you can quickly lose the overview. Therefore, combine them and transfer your loan to 1 lender. Merging gives you financial peace and overview.
You can transfer almost all types of loans
Most loans are suitable for transfer. For instance:
- Revolving credit
- Personal loan
- Red on your checking account
- A mail order credit like at Wehkamp
- Credit card debt