Although bank loans are – at least in comparison with non-bank ones – quite advantageous, people are not always satisfied with them. There are a number of reasons why bank clients are dissatisfied with their credit, but the important thing is that the loan can be easily and quickly transferred to another bank. Transferring a loan to another company is also called refinancing, and we’ll talk a little more about it in this article.
Reasons to transfer credit elsewhere
The common reasons people ask for refinancing their loan include dissatisfaction with monthly fees or interest rates. For example, it is usually people who have financial problems and need to reduce their monthly payment so that their tense monthly budget can be raised. But sometimes the reason is that refinancing simply saves money and allows clients to transfer the loan to get more interest or to repay the loan earlier than the original provider.
How to proceed with the transfer
If you are considering transferring a loan to another bank, first make sure that refinancing really makes sense for you. There are also some special internet calculators for this purpose, one of them you can find on the financial portal – just insert a few basic data and you will immediately be informed about whether or not you would have paid the transfer.
It is also important to choose a suitable bank – it is definitely worth going through several offers first and then choosing the most advantageous one. You can then apply for a loan transfer directly to the new bank where you want to transfer the loan, just need your personal documents and documentation for the original loan.
The difference between refinancing and consolidation
While refinancing can only apply to a single loan, consolidation may already involve several different loan products merged into one large loan. Consolidation includes not only traditional consumer loans, but also credit cards, overdrafts or mortgages, and currently you can find consolidations not only in bank offers, but also in some non-bank or building societies. Even with consolidations, it is a good idea to look at the options in advance and compare them with each other – some loan graders such as the website you’re on are a great help in this respect. Clicking on Consolidation in the top menu will take you directly to the page where the banking and non-bank consolidation products are compared.