The consolidation is intended to help us reduce the number of loan installments repaid. It is worth mentioning here that banks are liberalizing the conditions for granting consolidation loans.

They count on the fact that those products are of interest to customers who have so far paid their liabilities on time, they have settled correctly, so the service of the new liability should also be carried out properly.

Equally important, consolidation loans, unlike when introducing these products to banks’ offer, do not require the establishment of additional repayment collateral, which was once a mortgage.

What are the other attributes of this type of offer, but also the advertising hooks of banks offering the possibility of converting several loans into one? We will try to answer these and other questions in the material below about the most advantageous consolidation offers. We invite you to read.

Consolidation – what does it eat with?

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Each of us dreams of returning to the times when we had no loans or credits yet. Few of us are given the opportunity to repay all liabilities prematurely. However, if we want to ease the repayment of loans, they can be consolidated!

In other words, take out a new loan, which will be used to repay previously incurred obligations (loans and credits). So what is the benefit of consolidating your loans? There are several of them – let’s list the most important:

  • The option of paying an installment lower than the amount previously repaid;
  • Paying one installment instead of several;
  • The need to remember only one repayment date and one installment;
  • Opportunity to receive additional cash for any purpose (i.e. more than the current commitments);
  • Tailoring the installment to individual needs.

Where will we repay other loans?

Most banks that provide standard loans and cash loans also offer a special consolidation option. Let’s take a look at the most popular consolidation loan offers in Poland:

  • Good Finance offers a “Mini Ratka” no commission for October 15 for loans transferred from other banks and financial institutions;
  • Honest Bank offers a promotional offer “Express Loan” up to 30 September without commission and with an interest rate reduced to 15.49%;
  • Thrift Bank offers “Urgent Loan – consolidation” with an interest rate of up to 9.9% and a commission of only 2%;
  • At Cooperative Bank you can get a consolidation loan with an interest rate of 10% and a commission refund if you repay other loans through it!
  • Good Finance offers a consolidation loan with an interest rate of 7.99% per annum.

When is it not worth paying off other loans?

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There are certainly a few situations where it would be unprofitable for clients to consolidate their credit commitments. The most common are:

  • Payment of 5% commission for granting the consolidation loan;
  • Credit insurance, the cost of which with a long repayment period can be even more than 1/3 of the requested loan amount!
  • Excessive use of a long loan term, as a result of which interest will be very high – the longer the repayment, the higher the costs …

Hooks

Promotional consolidation offers currently available also have weaker elements in their construction – among them we should include:

  • At Good Finance, a promotional offer of 0% commission and willingness to repay at least one loan obligation towards New Lender may be used by persons who transfer loans with a minimum value of PLN 2,000 to New Lender;
  • The interest rates listed above offered by Good Finance (from 7.99%) and Thrift Bank (9.9%) are the minimum values ​​from which the best customers from the point of view of banking risk can;
  • Cooperative Bank will refund the commission charged when granting the loan only if it submits to the bank documents confirming repayment and closing of the loan-repaid liability.
  • The Honest Bank promotional credit offer is available to customers who have or open an Honest Bank personal account and top up, or – in the case of customers who do not have an inflow to the account – declare that they will top up the account with income from income.

Lower installment – that’s it!

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If there are proven ways to reduce your credit costs, it’s worth using them. One of these methods is to repay your loans with one new product in the consolidation option.

By extending the repayment period and taking advantage of more attractive pricing terms than the standard offer, you can count on a lower monthly installment and the possibility of using extra cash for any purpose!

However, it is always worth to be moderate in such a situation and remember that a longer loan period is usually more interest – so finally more for a loan … After all, we recommend checking the possibility of consolidating your loans – most often it brings measurable benefits!