Many different companies advertise that they offer consolidation loans, which allow the customer to pay off their current smaller loans.
Comparing the different options may not be easy, so here are some key things to help the borrower.
Consolidation loan from bank.
Many banks also offer consumer loans to pay off existing loans. You can apply for a loan directly from the bank of your choice. The bank usually requires that the customer already has an account with that bank. The application can be submitted online, but usually the bank’s online bank IDs are required.
Consolidation loan from a finance company.
Most financing companies provide loans to consolidate existing loans. This is conveniently done directly with an online application, which only takes a few minutes to process at its fastest. After the initial offer, the loan company will usually ask for attachments, such as a certificate of income or a detailed breakdown of existing loans. However, by applying for a loan directly to the company of your choice, you cannot easily compare different options. Nowadays, many loan companies also offer customized loan quotes and the cost of the loan cannot be determined in advance.
Consolidate loan through loan service.
You can also request loan offers on a consolidation loan through the loan service. With one easy online application, you can reach multiple banks and finance companies at once. This allows the applicant to compare offers from different companies and easily select the best loan.
Loan guaranteed by the Guarantee Fund.
The Guarantee Fund does not itself grant loans, but guarantees guarantees for bank loans drawn from the bank. The guarantee is intended for unforeseen circumstances in the event of a debt crisis. In order to obtain a guarantee, your life situation must be well established and the causes of the debt need to be controlled or eliminated. You can usually only get a guarantee once. However, it takes some time to process the Guarantee Fund and the waiting time for the service is a few months. In connection with the Guarantee Fund guarantee, the customer is also required to make a TK mark. The purpose of the subscription is to prevent additional indebtedness. The note will remain in the credit history for two years at a time.
Combining existing loans is usually always worthwhile.
It is a good idea for the applicant to consider the different options and compare the prices before making a final decision. However, it is advisable not to raise the loan beyond your own ability to pay. If you have any questions about the loan, you can contact our customer service . Municipal debt counselors also provide free loan guidance.