As statistics show, loans are more and more willingly taken by Poles not only because of their easy availability but also due to favorable contract terms. Unfortunately, in each of us’ lives, there are various difficult situations, e.g. job loss or important expenses related to treatment. These types of factors disturb our home budget and may result in a lack of adequate funds to pay back the loan.
What is loan refinancing?
We help with refinancing the loan. What is loan refinancing? In short, it involves making another commitment, which we intend to spend on paying off previous debts. As you know, most payday loans are usually granted for a short period, e.g. 30 or 60 days.
It is also not possible to extend the repayment date, as is the case, for example, in the case of long-term loans. And even if such an option is available, it involves reporting information to Credit Checker and incurring additional costs. Loan refinancing takes a completely different form and is available to people who are debtors and have a bad history at Credit Checker.
Refinanced loan – what do you need to know about it?
We have already mentioned what refinancing a loan is about. A refinancing loan is nothing but a financial product proposed by non-bank companies. It enables repayment of earlier liabilities and very often may be associated with more favorable conditions than in the case of earlier loans.
Especially when we consider the interest and additional commissions that we have to pay for late payments of previous loans. The refinancing loan is most often chosen by clients from an offer of a different parabank than the one in which they took out payday loans. It is provided in exactly the same amount as the previous commitment, which we cannot cope with.
It is important here that the borrower does not receive funds into his bank account, and they are transferred directly to the company in which he has debts. It is a safe and reliable way to pay back the arrears. If you take a refinancing loan, it is obvious that we also receive a new repayment date.
How to apply for a loan refinancing?
People who want to apply for a refinancing loan should first pay attention to the offers available on the market. These types of services are becoming more and more popular, and loan companies are constantly introducing more and more favorable conditions for future clients.
It is not worth choosing the first offer from the edge, because it may turn out that we will miss the opportunity to receive really profitable conditions. Once we find an offer for ourselves, we can proceed to the application process. Contrary to appearances, it is not complicated, because all you have to do is submit an online form on the website of the selected parabank.
A lot of loan companies allow you to enter basic information on your site, such as the amount of the loan you have, and select the refinancing option, after which they speak to their clients by phone or email to make an offer.
Is refinancing a loan profitable?
Most of those who are thinking about taking out a refinanced loan is also thinking about whether this method is certainly more profitable than, for example, extending the repayment date?
It is worth mentioning here that many companies may charge an additional fee for such a service, but it is fixed in advance, and we receive information about its amount almost immediately after submitting a query on the website. There will also be a fee for taking a new loan. However, it is worth, to sum up, the costs in detail, because this option may, in turn, prove to be more advantageous.
Advantages of refinancing a loan:
- A refinancing loan allows you to pay off your liabilities almost immediately. Thanks to this, we avoid contractual penalties and debt collector;
- We get a new loan repayment date, so we have more time to collect the appropriate funds;
- We do not need to complete a large number of formalities. The refinancing process runs smoothly and smoothly ;
- Refinancing will not adversely affect the history of Credit Checker.
Disadvantages of a refinancing loan:
Refinancing has many advantages, but it doesn’t mean that it doesn’t have its drawbacks either. Definitely the disadvantages of a refinancing loan are:
- additional costs that we will have to pay due to the longer term of the loan,
- incurring refinancing fees (however, they are often lower than fines for late loan repayment).