Super Fast Money Payday Loans Online-Thatvilla.Com http://thatvilla.com// Sat, 02 Nov 2019 13:12:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.6 Cross-selling in mortgage offers. When is it worth using? http://thatvilla.com//cross-selling-in-mortgage-offers-when-is-it-worth-using/ Sat, 02 Nov 2019 13:12:00 +0000 http://www.thatvilla.com/cross-selling-in-mortgage-offers-when-is-it-worth-using/

A client applying for a loan for a flat at a bank can receive two offers with different commission or interest rates. One proposal usually presents the terms of a standard mortgage, the other one – a loan with additional products. What is cross-selling in mortgage offers? Does it always mean lower cost of credit? Is it profitable to take out a mortgage in tying?

 

Cross-selling in mortgage offers – basic information

Cross-selling in mortgage offers - basic information

Only a few years ago, banks could add “obligatory” additional products to mortgage loans. Since the introduction of amendments to the Mortgage Act, when submitting an application for financing, the customer himself specifies which contract option he wants to use. Currently, you can choose a regular loan agreement or take out a loan as part of tying, i.e. cross-selling. The choice of variant affects the monthly expenses associated with the loan and the total cost of the commitment!

 

What is cross-selling in mortgage offers?

What is cross-selling in mortgage offers?

When choosing a mortgage in cross-selling, the client receives more profitable financing terms than choosing the standard offer of a given lender. It can be a reduced or even zero commission, or a lower margin (and thus a lower interest rate). Depending on your loan package, you can get one or both of these benefits at the same time.

On the other hand, when borrowing in cross-selling, the borrower undertakes to purchase and use other bank products , which in most cases … generate costs. What’s more, the very use of individual ones is subject to certain rules, compliance with which is a prerequisite for maintaining discounts. This is an obvious drawback, but the products offered in cross-selling are not always an unnecessary additional cost. For example, a given package may include property insurance, which the mortgage borrower is still obliged to take out.

As part of the cross-selling proposal, one, two, three or more products of a given bank may be attached to the mortgage loan. A loan package can be supplemented by a personal account, credit card, life or apartment insurance, an investment product, or a combination of several of these solutions. In most cases, the bundled offer has a fairly complex structure and involves at least several conditions for reducing commission and / or margin. There are also such proposals, where the scale of the reduction depends on the number and type of criteria met, and this definitely does not make it easier to assess their profitability.

 

The simplest cross-selling offer: a personal account in a package with a mortgage

The simplest cross-selling offer: a personal account in a package with a mortgage

A simple and quite popular package offer is a mortgage with a personal account . In this case, in exchange for opening an account and using a debit card, the bank will slightly lower the interest rate on the loan (e.g. by 0.1 pp). The reduction is small, but after several years of repayment, it can bring a total of several hundred zlotys in savings. The mere use of an account is usually free after meeting certain criteria, i.e. most often provided that the card is actively used (making monthly payments for an amount above e.g. $ 500), or ensuring monthly inflows of a certain amount (e.g. $ 2,000).

By having a personal account in the same bank where the mortgage is taken, the customer has easy access to all information about his commitment. After logging into your account, you can check, for example, the remaining loan amount or the current installment amount. If the interest rates change and the bank updates the installment amount, it will be easily verified through the account. Of course, in the event of changes in interest rates, the bank sends a new repayment schedule by post (traditional or electronic).

 

A popular option: a mortgage with life insurance and a personal bill

A popular option: a mortgage with life insurance and a personal bill

Another option of cross-selling is a personal bill with a life insurance policy . Compared to the standard mortgage offer, this combination usually reduces the bank’s margin by a few tenths of a percentage point. This generates considerable savings, but on the other hand, there are high additional costs. They are responsible for life insurance, which you usually need to use for at least the first few years of loan repayment, and often until the end of the loan period.

Sometimes, in addition to a standard life insurance policy, the bank also requires you to take out protection against loss of job and permanent inability to work. Sometimes it is possible that you can opt out of an additional extension after a certain period of time. However, basic life insurance must be used throughout the loan repayment period. The bank cannot force a customer to conclude a life insurance contract – unless he is elderly or he takes the loan as the only borrower.

 

Cross-selling in mortgage offers – other variants

Cross-selling in mortgage offers - other variants

There are also other, more complex cross-selling variants on the market. The bank that decides to introduce them usually gives you the option of choosing one of several options. In this case, you can have, for example:

  • basic package (personal bill, unemployment insurance, credit card);
  • insurance package (personal account, credit card, life insurance with comprehensive protection);
  • investment package (personal account, credit card, savings program or investment policy).

Some banks, instead of offering credit packages with a strictly defined structure, use a list of conditions that must be met in order to receive a lower commission or interest rate on the loan . In their case, it is usually the case that one or two set conditions are met, and each subsequent one is rewarded with an additional reduction in the margin by a set number of percentage points.

What exactly can the bank expect here in exchange for lowering its margin? E.g:

  • opening a personal account and regularly transferring remuneration to it throughout the duration of the loan agreement;
  • take out a life insurance policy and use it until the end of the loan period;
  • purchase a credit card and pay it with at least one transaction monthly for the next 3 years;
  • opening a term deposit for 10,000 dollars and maintaining it for the next 24 months;
  • regularly acquiring TFI investment units of a bank and maintaining them for a period of, for example, 24 months.

 

What results in breaking the terms of the cross-selling offer?

What results in breaking the terms of the cross-selling offer?

While the criteria, the fulfillment of which entitles them to lower interest rates, can be very different, the effects of non-compliance with the promotion terms are always the same: the bank begins to charge a standard margin.

Some lenders apply strict rules and irrevocably receive all discounts when the customer breaks even one condition of the bundled offer. Others are more forgiving and even if they do not meet several criteria, they only temporarily increase the margin. The loan agreement will always give you detailed information about the consequences the borrower must face.

Regardless of whether you consciously give up a product bundled, or distracted or forgotten, you do not meet any condition to reduce the margin, the result will be an increase in installments and the total cost of the mortgage.

 

Is it worth using a given cross-selling offer?

Is it worth using a given cross-selling offer?

If you comply with the terms of the promotion, you get a lower interest rate and / or preparation fee, in other words, you simply use a cheaper loan. The assessment of the actual profitability of a given cross-seling offer requires recalculation and consideration of the costs associated with related products, as well as paying attention to the total cost of the loan. As long as these costs are lower than the profits from the reduction in the margin or commission, the proposal should be considered attractive. Since the calculations that appear here can be quite complicated, you should always consider using the advice of a trusted credit expert.

When considering the selection of a given cross-selling offer, it is worth considering non-cost issues. It is important above all whether the borrower will be able to easily meet the conditions set by the bank. In addition, you need to analyze whether the products included in the package do not raise additional problems. For example, the requirement to regularly pay funds to an investment fund, which will fall after the period of paying mortgage installments, can be troublesome. In practice, it is only when you consider not only the financial aspects but also the issues of the usability of individual solutions that you can assess the profitability of a specific bundled offer.

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Lending programs of loan companies – when is it worth using? http://thatvilla.com//lending-programs-of-loan-companies-when-is-it-worth-using/ Sun, 27 Oct 2019 12:11:38 +0000 http://www.thatvilla.com/lending-programs-of-loan-companies-when-is-it-worth-using/

Non-bank online lending companies focus on competitiveness and customer attachment. Therefore, in addition to free payday loans or facilities such as loans without verification transfer, it focuses on loyalty programs. Of course, they do not apply to all companies, but they are systematically gaining popularity.

What are loyalty programs?

What are loyalty programs?

Loyalty programs are known mainly due to large retail chains, offering customers attractive rewards in exchange for regular purchases, which in turn is to build positive customer-service provider relationships. It works similarly in loan companies and on the one hand is to build a good image of the company in the eyes of the client, and on the other – to attract attractive clients to it.

In a word: everyone. However, there are some “buts”. As the name suggests – the loyalty program is targeted at loyal customers, i.e. customers who have lent more than once. The fact that the loan is repaid on time is also key. Non-payment or late repayment basically excludes such customer.

What can you gain?

What can you gain?

The loan companies offer includes several basic forms of gratification to loyal customers, often called benefit packages. These are

• larger loan amount and longer repayment period
• lower loan costs
• access to the knowledge base
• direct financial rebates

It is not always to be expected that the loyalty program will be systematised or expressed in a rigid framework. It is often the case that companies periodically launch promotions for regular customers. Those who can show brand loyalty then receive personalized promotional offers. One of the major brands, NetCredit, does so.

Recommend a loan to friends and earn with VIA SMS

money cash

A VIA SMS customer who already has one repaid loan in the company can recommend the payday loan online to his friend and receive PLN 50 if the friend takes out this loan. You can send as many as 30 invitations a day, so theoretically it could be a salary of PLN 1,500. There are only two conditions: non-payment and sending an invitation to a person who is not yet a VIA SMS customer.

The most common and most beneficial form of loyalty program for the customer is to reduce the cost of the future loan. A good example is the Loan Plus company and its Benefits Plus package. Not only does it offer the first loan for PLN 10, but also distinguishes returning customers by reducing the cost of the loan by up to 50% depending on the number of loans repaid. Regular customers are given rebate codes, which you only need to enter in the application.

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A lost bank card – what to do and how fast you should act? http://thatvilla.com//a-lost-bank-card-what-to-do-and-how-fast-you-should-act/ Sat, 26 Oct 2019 08:16:12 +0000 http://www.thatvilla.com/a-lost-bank-card-what-to-do-and-how-fast-you-should-act/

Having a bank payment card is a great convenience. Increasingly, we decide to make non-cash transactions that are very convenient and secure in themselves. We usually have the card with us, and payments are faster than in the case of cash transactions.

Meanwhile, the Polish Bank Association pointed out that carrying a bank card in the wallet together with money and documents carries some financial risk. This is because as many as 70 percent of Poles do not know how to behave when a payment card is lost or stolen.

A lost bank card will not be a problem as long as we act accordingly. What should I do if my bank card is lost or stolen? How fast should you act? We answer these and many more questions in the article below.

A lost bank card – the most common causes

bank

Unfortunately, the loss of a bank card is the result of our distraction. We often carry a card in our wallet, which we automatically put into our pocket or purse, without thinking about the action. The Polish Bank Association estimates that as many as 70 percent of us carry an ATM card in their wallet, which is a high risk. Losing your wallet happens more often than you might think.

Contrary to popular belief, forgetfulness also happens relatively often. We often leave the card under an ATM, because we are focused on keeping money or in-depth analysis of the printed confirmation.

Theft is another not infrequent reason for losing a bank card. Pickpockets are outdoing themselves in clever methods of how to deprive us of valuable things virtually imperceptibly. So let’s be on guard, especially in tight and crowded places.

The most common mistakes

bank

One of the most common mistakes is a long search for the card in the hope that it will be found quickly. Another problem is the lack of knowledge on how to behave in such a situation. In the meantime, if you do not find a loss within a few minutes, you must immediately block your bank card. Every moment of delay is associated with an increased risk that the current card holder will use the funds on the account or credit limit – if we had a credit card.

The disadvantage of quick response and card capping is the irreversibility of this process. However, if the card is found, it may not be possible to cancel the reservation. Then the customer will be forced to get a new card, which may incur additional costs. However, compared to the losses we can incur if you do not claim a stolen or permanently lost bank card, this is still the most rational solution.

What data will I need to reserve a bank card?

bank

To reserve a payment card in one of our bank branches, you will need an ID. Without it, a lost bank card will not be restricted. However, the problem arises when the entire wallet has been lost, including all documents and ID card. In this situation, we must direct our first steps to a nearby police station. A temporary document will be issued to the police and replace the ID card or passport. With this confirmation, we can only go to the bank branch to reserve the payment card.

However, if we decide to solve the problem through the hotline, we must reckon with the fact that the consultant will ask us to provide some information. It can be the access number to electronic banking or the last few digits from the bank card we have lost. In this case, we will find the necessary information in the contract with the bank. So keep this document in an easily accessible place and remember where it is.

In addition, some banks require you to provide your mother’s maiden name or other personal information, which is usually not available to bystanders.

It’s good to know that some banks charge a fee for stopping a card. The amount of the fee depends on the fee schedule for the bank’s card and can range from about PLN 15 to even PLN 30-40.

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Additional Costs in the Home Budget – How to Manage Them http://thatvilla.com//additional-costs-in-the-home-budget-how-to-manage-them/ Mon, 08 Apr 2019 18:03:27 +0000 http://www.thatvilla.com/additional-costs-in-the-home-budget-how-to-manage-them/ Our home budget is never stable. Even if we planned all expenses with the utmost care, we can always “jump out” and we will have to make a proper purchase or spend money to repair a damaged kettle, sink or lawn mower. If we buy something new to our household, we usually pay attention to the price. This is why we are so eager to browse newsletters with promotions or look for something interesting on sales. However, the purchase price does not tell us exactly whether the item is cheap to use or not. Therefore, we should also pay attention to other aspects related to the purchase of a given item, as it may turn out that something that is cheap when you buy it will turn out to be very expensive to use.

What is TCO (Total Cost of Ownership)?

What is TCO (Total Cost of Ownership)?

TCO, or Total Cost of Ownership, is translated into Polish “total cost of ownership”. In other words, it is the sum of expenses that results from obtaining, installing, using, maintaining and finally getting rid of the given equipment. So if every time you buy, we will be serious about TCO, it may turn out that something that is cheap at first glance (eg bought in promotion), in fact turns out to be extremely expensive. Thanks to this approach to shopping after some time it will turn out that shopping is not the most important low price, but cheap use. Sometimes it is better to spend more when buying, to pay lower costs for use.

Examples of using TCO

Let’s follow an example of how we can use TCO analysis on the example of a car. If we are going to buy a new vehicle, pay attention not only to its price. Let’s also take into account other direct and indirect costs associated with its operation. So pay attention to the costs associated with fuel consumption, vehicle servicing, repairs, insurance, tire replacement, etc. When we compare two different brands of cars of the same class, we will certainly see that all costs related to the operation of vehicles are different. And it may turn out that a brand that has a lower purchase price will in fact turn out to be more expensive, because spare parts for it will be more expensive, or will burn more fuel.

Another example can be a washing machine. A medium-class washing machine in the A +++ economy class, which costs PLN 1,200, consumes around 9,000 liters of water during the year. However, an economy class A washing machine, for which we will pay PLN 900, can use up to 14,000 liters of water during the year. The difference in water consumption is therefore 5,000 liters per year, which is about PLN 150 for us. It can be clearly seen that after two years, higher purchase costs have turned and we are starting to earn more on the more expensive washing machine.

Similar examples can be multiplied. TCO analysis can be done for both shoes (the more expensive endurance is usually higher, so we do not have to buy new ones longer), telephone subscriptions (lower subscription, usually means we have to pay more for calls) or any other subject.

Expensive can be cheap

For a long time in our colloquial language there has been a saying: “What cheap is expensive”. Everyone should think carefully about its meaning, because thanks to this, in our home budget we will be able to save a lot of money, because we will be able to better plan our expenses.

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Why Are Payday Loans So Expensive? http://thatvilla.com//why-are-payday-loans-so-expensive/ http://thatvilla.com//why-are-payday-loans-so-expensive/#respond Thu, 21 Mar 2019 18:46:28 +0000 http://www.thatvilla.com/why-are-payday-loans-so-expensive/ When we have to borrow money quickly, the best solution for us seems to be a loan company that offers payday loans via the Internet. Thanks to it, we can borrow money even within several minutes and what is important, without leaving home. One may wonder why not everyone uses such payday loans, since we get money fast, without security and often without checking BIK registers. You can enter two answers here. First of all, we have to give back money quickly, because usually we have only 30 days to do it . Only some companies pay 45 or 60 days to repay. However, there is one more reason that makes many people think long before applying for a break. The reason is, of course, the high costs that accompany these types of loans.

We may wonder why companies offering payday loans on the Internet pay them “high” in terms of costs. There may be several reasons. First of all, these are loans for companies that give them immensely risky. For they are not fully able to check which client is the person who makes the request. There is no income control here, often there is no control of registers in the Credit Information Bureau. So it very often happens that people who borrow money do not pay them back on time. As you can guess, it is not easy for the lender to recover the borrowed money and generates a lot of additional costs. And often money can not be recovered. Therefore, in order for the company not to bring losses, it must raise the price of the product and somehow “make” its profit thanks to those who pay their debts on time.

Certainly one of the reasons why the payday loans are so expensive is the fact that the convenience “we have to pay”. If we can apply without leaving home, at any time of the day or night, it must cost us a bit more.

Loan companies themselves say that their offer is often used by people who are under the proverbial “wall” and simply have no choice but to use their offer. Therefore, they do not look at the costs that need to be borne in relation to the loan, they only ask for it. So companies know that even if they raise the cost of their loans, people who have no other option will submit an application to them and borrow money.

We are not surprised that despite the great competition in this market, loan companies do not reduce the costs of payday loans. The exception here are only loans for free, which are on the offer of many companies. If someone lends money to a given company that has such a promotion for the first time and gives it back in time, he does not have to pay anything more than he borrowed. But this is just a marketing gimmick. First of all, it is difficult to pay back all debt within 30 days, so borrowers usually extend the debt repayment date. And you have to pay for it. And secondly, if a person who has used a loan for free will again need money, it will most likely submit an application to the same company from which the offer has already been used. And for those loans you have to pay the costs, so this “special offer” very quickly returns to the loan companies.

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Do You Get Married Even If Your Boyfriend is in Debt? What is the Impact of Debt Consolidation? http://thatvilla.com//do-you-get-married-even-if-your-boyfriend-is-in-debt-what-is-the-impact-of-debt-consolidation/ http://thatvilla.com//do-you-get-married-even-if-your-boyfriend-is-in-debt-what-is-the-impact-of-debt-consolidation/#respond Thu, 14 Feb 2019 13:30:01 +0000 http://www.thatvilla.com/do-you-get-married-even-if-your-boyfriend-is-in-debt-what-is-the-impact-of-debt-consolidation/ Even if your boyfriend has debts, will you get married? An editorial over at http://saltwaterconnections.org/loan-on-your-account-directly-from-payday-lender/

Or will you break up?

Until then I would have liked my boyfriend, but as soon as I heard the story of debt 100 years of love will cool down.

However, on the other hand, some women think that if you have love you can overcome the challenge of debt.

Also, if your boyfriend has a debt, there is an option to marry after debt consolidation, but in that case, we will explain including the influence after marriage.

A woman’s feelings about her boyfriend’s debt

A woman

Surprising facts found by questionnaire

The first thing to worry about is that what other women think about marriage when their boyfriend has debts?

Here we will introduce two questionnaire surveys, but contrasting results came out there .

According to the user questionnaire conducted

First place No impact: 61%
2nd place I wanted to cut down the preparation cost of wedding ceremony and new life: 25%
3rd place I wanted to review the future design: 11%
4th place I got married itself lost: 3%

As a result, only 3% got lost in marriage itself .

Meanwhile, according to a questionnaire conducted for working women aged 22 to 35

1st place splitting: 44.65%
2nd place boyfriend gets married after repaying debt: 29.75%
3rd place: marry but leave debt repayment: 12.75%
4th place: marry after repaying debt together: 6.35%
5th place: marry and return debt together: 5.65%

As a result of giving up marriage, such as getting married, more than 40% of those who said they break up, which contrasted with the first questionnaire.

Because is supposed to be married readers, even if you find debt to your boyfriend, there seems to be a stronger tendency to work positively on marriage.

On the other hand, since targets working women, rather self-reliance is strong, it seems that the feeling that it is better to break up with a boyfriend who has a debt is more likely to work.

Know your boyfriend’s debt

However, among the women who wanted to get married even if their boyfriend had debts, there were overwhelmingly many opinions that “the boyfriend’s debt should be grasped properly before marriage .”

Debt is greatly related to future life design.

Therefore, even to the embarrassing problem of debt, how honestly the boyfriend will talk is honestly becoming very important in the future for establishing a relationship of trust between married couples in marriage.

In particular,

  • When have you borrowed money?
  • How much debts are left?
  • How much is the monthly repayment amount?
  • What is the current income amount?

It is important to listen to yourself from your boyfriend and to know it as chitin.

My boyfriend’s debt is limited to 1 million yen! What?

In fact, according to the questionnaire which women in their 20s to 30s asked about the allowance for men to the debt, it is said that there were many people saying “Compromise if less than 1 million yen” was asked .

Again, when the boyfriend of the debt is more than 1 million yen digits than increase one, it seems women often feel the pressure.

In addition, there are women who check severely like consumer finance “OK if less than a third of annual income”.

How to deal with marrying a boyfriend with a debt

How to deal with marrying a boyfriend with a debt

So, when considering marriage with a boyfriend with a debt, what kind of measures should be taken specifically?

Stable planning after marriage

Stable planning after marriage

If my boyfriend’s debt amount is not so large, I think that marriage as it is one choice.

However, in that case, it is important to make a proper plan .

In particular,

  • I will do all the wedding ceremonies handmade or make it small scale
  • Abandon wedding rings and honeymoon trips
  • Now, share the house, appliances, and furniture you are using, even after marriage
  • For the time being give up on the child

It becomes possible to suppress expenses in such a form.

Boyfriend’s debt should be paid as much as possible before marriage

Boyfriend

However, even if it tells from the various cases I watched, it is better to refrain from marrying as much as possible when the boyfriend is repaying debt.

The reason is that if you have debt, the probability that your couple’s relationship of trust will collapse and break up in the form of divorce will be very high .

Even if it does not go to bankruptcy, there is plenty of possibility of constantly holding each other’s stresses and continuing the gistogised relation.

It is truly tragic to marry in order to be happy by themselves, rather than being happy due to debt, rather than being stressed married life .

Therefore, I think that it is ideal if a boyfriend can wait for marriage until paying debts on his own.

■ Your boyfriend’s debt should not be returned together

Some women think about returning their boyfriend ‘s debts together, but that is absolutely not good for their future marriage.

How to solve your boyfriend’s debt with debt consolidation

How to solve your boyfriend

However, if the boyfriend’s borrowing amount is large and it is difficult to repay the debt by all means, or it takes time to repay, there is also a method of asking a lawyer or a judicial scrivener to arrange the debt .

If debt consolidation is carried out, it will be possible to resolve the debt problem at once in a short period of time by cutting interest and future debts.

How much you actually can reduce your boyfriend’s debt can be easily examined using the following method.

If you do not want to break up with your boyfriend, please have your boyfriend take a diagnosis once, as it may become a turning point to consider marrying with your boyfriend.

Impact after marriage when the boyfriend has debt consolidation

Impact after marriage when the boyfriend has debt consolidation

If your boyfriend carries out debt consolidation, there are also people who are worried about the influence after marriage.

However, it is only the boyfriend’s debt that is subject to debt consolidation, and as a rule there is no way that your credit information will be affected just because you got married , so please rest assured in that respect .

However, there are some points to be aware of.

Loan can not be assembled for a certain period under the boyfriend’s name

When the boyfriend carries out debt consolidation, the accident information is registered in the credit information agency for about 5 to 10 years.

Therefore, until the accident information disappears, you can not organize a mortgage or a car loan under the boyfriend ‘s name .

Even if you try to build a mortgage with your name, your boyfriend can not become a joint guarantor.

Also during this period, my boyfriend can not have a credit card.

Therefore, there is also a necessity to make credit cards under your name, to support and support family cards to your boyfriend who will be your husband.

After the boyfriend has settled the debt, points to be noted when making family cards are summarized in the following article.

When your boyfriend has a house or a car

When your boyfriend has a house or a car

If your boyfriend has a house or a car under the boyfriend’s name, there is the possibility that you will have to give up the asset by doing the bankruptcy procedure by debt consolidation procedure.

So, if you are planning to use the boyfriend ‘s house or car after marriage, you may be affected .

However, if it is a procedure for voluntary sorting and personal revitalization, it is possible to protect the house even if a mortgage remains .

Also, if you have voluntary arrangement procedures, you can solve the debt problem not only by housing loans but also by car loans remaining from subjects of debt consolidation and by reducing other debts Is possible.

Therefore, we recommend that you consult a lawyer or a judicial scrivener well.

My boyfriend’s debt is a big trial for those considering until marriage, but I hope that you will overcome the challenges and build deeper relationships of trust while better using debt consolidation .

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Guaranteed Payday Loans Direct Lenders – Payday Loan Online No Credit Check http://thatvilla.com//refinancing-and-consolidation-loan-similarities-and-differences/ http://thatvilla.com//refinancing-and-consolidation-loan-similarities-and-differences/#respond Thu, 17 Jan 2019 12:42:46 +0000 http://www.thatvilla.com/refinancing-and-consolidation-loan-similarities-and-differences/ Refinancing and consolidation loans are often juxtaposed as two names of the same offer – but this is not true. These two types of loans are something completely different, although they work on a similar principle and they are supposed to help us repay our obligations under more favorable conditions. But what are they different from each other? Which form of loan – refinancing or consolidation is better?

Super fast money for you: Payday Loan Online No Credit Check

What is a consolidation loan?

The offers of consolidation loans are very popular and often encountered. It’s nothing more than combining all existing liabilities into one , thanks to which you have one instead of several loans. It also allows for unification of the interest rate.

It works in such a way that the bank repays all the borrower’s obligations, at the same time granting him a new loan, which is the sum of all existing debts.

This allows you to combine in one very different financial offers, such as cash loans with housing loans or other forms of credit, including credit card debt. The big advantage is undoubtedly the lower installment , which, however, is often associated with a longer repayment period.

What is a refinancing loan?

What is a refinancing loan?

In the case of refinancing, we deal with a slightly different business. Above all, refinancing is nothing but changing one loan to another, which usually involves transferring credits from one bank to another.

In addition, there are also more restrictions here, because this offer is especially intended for housing loans that are secured by a mortgage.

Although it rarely happens, you can also find offers for refinancing car loans.The most common reason for refinancing is the desire to change the terms of the contract, for more favorable . In other words, a new loan is made, but with a different loan period, interest rate or even in a different currency.

Similarities and differences between refinancing and consolidation loans

Similarities and differences between refinancing and consolidation loans

A refinancing loan and a consolidation loan are two completely different financial offers , which, however, have certain points in common. Above all, in both cases borrowers want better terms of the contract , which would help them increase the chances of repaying the loan.

In the case of consolidation, the aim is to collect all liabilities into one loan, and when refinancing, change one contract to another.

However, the difference is much more than similarities – the consolidation concerns several financial liabilities of different types combined into one, with refinancing it is a conversion of one loan, usually a residential or mortgage (less car loan) to another loan of the same type, but in another bank.

Motivations can also be different – with consolidation it is simply more convenient to pay off one loan than a few , which is often associated with higher expenses.

In the case of loan refinancing, it is most often decided by people whose financial situation has improved and the conditions for a more favorable and shorter lending period are to change, but with a worse financial situation, the loan period can also be extended.

Which loan will be better – refinancing or consolidation?

Which loan will be better - refinancing or consolidation?

Which loan will be better? It depends on what situation we found ourselves . If we have more financial obligations, it will be natural to consolidate them. When it comes to housing loans only, you can think about refinancing, but only if there is a better offer on the market than the one we currently have .

Issues such as interest rates, bank margins and WIBOR affect the amount of installments and it is worth paying attention.However, it must be remembered that regardless of our choice, you must precisely define your expectations , as well as check the offers of banks, because it may turn out that taking a consolidation loan or a refinancing loan will not always be profitable.

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WHEN IS CONSOLIDATION LOAN PROFITABLE? THE BEST OFFERS FROM BANKS http://thatvilla.com//when-is-consolidation-loan-profitable-the-best-offers-from-banks/ http://thatvilla.com//when-is-consolidation-loan-profitable-the-best-offers-from-banks/#respond Sat, 05 Jan 2019 12:38:34 +0000 http://www.thatvilla.com/when-is-consolidation-loan-profitable-the-best-offers-from-banks/ A consolidation loan is often a good solution for people with several debts whose repayment becomes a serious burden on the household budget. What exactly does he recommend it for? And who should decide on it?

What is a consolidation loan?

What is a consolidation loan?

The consolidation loan consists in combining several loans with one liability , with a joint installment and a single interest rate. How does it look in practice? Thanks to consolidation, you repay one debt instead of two, three or four, the installment is adjusted to your financial capacity and is usually lower than the sum of all installments of previous liabilities. The interest rate is also standardized, which is also lower. Why is this possible?The mechanism is very simple and is based on extending the loan period . You repay lower installments with a better interest rate, but in the longer term. Consequently, you pay more interest, which means that, as a last resort, a consolidation loan is more expensive. However, there are situations in which this solution is profitable. What?

When is it profitable to consolidate loans?

When is it profitable to consolidate loans?

The consolidation of loans is decided by people for whom the repayment of current loans is too high a burden on the household budget . Thanks to the lower installments, they are able to make timely payments to the bank account and thus maintain regularity in repaying their obligations. They also do not have to worry about forgetting one of the loans.

The only thing that matters is the consolidation of loans should be sought before major repayment problems begin. If the bank notices that you do not pay your debts, you can refuse the application.

Favorable offers for consolidation loans

Favorable offers for consolidation loans

Before presenting you the best in our opinion, offer consolidation loans, we’d like to point out that you can combine different types of debt, eg. Housing loans , cash loans , car loans , loans , and credit cards .A consolidation loan for persons transferring loans and other liabilities is available at PKO BankPolski. Importantly, you do not need to have an open savings account with PKO BP in order to be able to take out this loan. You can get a liability ranging from PLN 1,000 to PLN 120,000, and you pay nothing for early repayment, which is a very good solution. In addition, the bank offers “extra cash” for any purpose up to 25% of repaid debts.The Millenium bank also has a consolidation loan in its offer, which is additionally accompanied by insurance. Millenium guarantees the lowest interest rate , although what you should pay attention to is the amount of the APRC, ie the Real Annual Interest Rate, which also includes commissions, margins and other fees related to incurring debt.

A consolidation loan can be obtained up to PLN 150,000, and the loan term is up to 10 years. What distinguishes this offer is the low APY 9.37%. In addition, the payment of funds is often made one day after submitting the application.This is obviously not all offers that are available on the Polish banking market. If you want to know the terms of the other banks, you can use our comparator for consolidation loans . Thanks to her you will find a loan tailored to your needs.

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