Complete overview of frequently asked questions about loan and credit consolidation. Interesting information and practical answers.
What does consolidation mean?
Recently, the word consolidation has been increasingly inflected. It is offered by a number of financial institutions, which expand their product range. Loan consolidation means merging multiple loans into one single loan, replacing only one entity instead of paying only one entity to one company.
What can be included in consolidation?
Consolidation mainly concerns loans, but may include other types of credit products. In addition to classic bank and non-bank loans, credit cards or overdrafts can also be consolidated. Banking and non-bank consolidation is a very popular form of reducing fees for many financial products.
What companies offer a merger with us?
The merger of loans in the Czech Republic allows not only banks but also some non-bank financial companies. From banks, it offers credit consolidation such as Česká spořitelna, Komerční banka, Fio banka and Air Bank, from non-banking institutions such as Cetelem, Home Credit and Cofidis.
To what extent can loans be merged?
It depends on which company you ask for consolidation. Each consolidation provider has a different set of limits, but for some it is possible to merge loans up to one million CZK. Of course, the condition that you have this consolidation approved is your ability to repay the loan properly.
What are the main benefits of merging multiple loans into one?
Combining multiple loans into one brings several benefits. The first and most important consolidation benefits for many are lower monthly payments. Especially those applicants who have a tight financial budget and find it difficult to get their money out can save money every month and get extra money by merging loans. Another advantage is the possibility of total savings of money – consolidation often means lower interest rate and thus you pay less money than if you left the loans with their original providers. Last but not least, the advantage of loan consolidation is the fact that repayment will be greatly simplified – you do not have to pay installments to several companies, but you only pay one single aggregate installment.
What is loan refinancing?
Loan Refinancing is another way to save money. In this case, the transfer of your existing loan to another institution will take over the loan. The advantage is that with the same number of installments, you pay a lower monthly installment – so you pay less than if you didn’t refinance your loan. Loan refinancing is so slightly different product than bank consolidation loans comparison.
Who offers loan refinancing with us?
Many Czech banks offer refinancing of the loan, including GeMoney Bank, Equa bank, ZUNO banka and Raiffeisen bank.
What other products can be refinanced?
You can refinance not only your loan, but also some other credit products. These include, for example, classic mortgages, US mortgages, building savings or even execution.
For whom is loan consolidation or loan refinancing suitable?
Loan consolidation is especially suitable for those who already have a lot of different loans and would like to pay monthly installments. It is also a great choice for those who want to simplify their finances and not always have to think about having to repay several loans at the same time. Loan Refinancing is a great service for everyone who pays too high monthly repayments and would like to pay less while maintaining the total repayment period.
What are the conditions for a person to ask for consolidation?
The conditions for consolidation are different for each bank and non-bank company, but the applicant must always be at least 18 years old. It is usually necessary to have permanent residence in the Czech Republic. In addition, some personal documents and certificates are required, in addition to the identity card, it is also necessary to have documentation of existing loans. Some documents require other documents, such as bank statements, employment or business certificates, etc.
How to choose the right loan consolidation?
If you are interested in merging more loans into one, you should not turn to the first company you encounter, but think about it all. It is ideal to look at the internet and browse the websites of individual banking and non-bank providers, and to read various reviews and client experiences. Only when you have enough information can you make a qualified decision about which company will be the most advantageous for you to consolidate your loans. Consolidation of loans without a register is also popular. The same is true for refinancing a loan. This service is offered by more financial companies, so even in this case it pays to compare their offers in advance and then choose the one that will suit you best. Differences are in both interest rates and different fees and therefore need to be selected very carefully.
How is consolidation sought?
As with a loan application, you can apply for this service in person, online or over the phone for credit consolidation. In any case, you will need to document your existing loans.
Loan consolidation calculator
If you’re thinking of merging multiple loans into one, a consolidation calculator is a very useful tool to help you decide. These calculators can be found on various websites and you can easily calculate on them how much money you would save with consolidation. Consolidation calculators are both on the pages of the financial companies that offer this product and on independent sites where you can calculate whether your merger will pay off.