How to apply for a difficult loan

When we talk about a difficult loan, we mean one that is difficult to obtain. What is the reason? Before the loan is granted to us, the bank is required to verify us in the Credit Information Bureau and check our financial standing. These two things most determine our creditworthiness. By creditworthiness, the bank means the ability to repay the loan. In other words, the bank verifies that we can afford the loan. Most often we talk about difficult credit in a situation where we already have previous liabilities, we do not have fixed income, we do not pay earlier obligations on time, etc. One of the popular difficult loans is a consolidation loan.

 

A consolidation loan

A consolidation loan

The consolidation loan is, as the name suggests, to consolidate our previous commitments. The main assumption of the consolidation loan is to reduce the monthly installment amount by extending the loan period. In this way, instead of many different loans and several installments to be repaid at the same time, we can have one loan and one installment. A consolidation loan is also a chance to harmonize the terms of the loan. Thanks to this, we will have a chance to negotiate the terms again, because we are actually taking out a new loan, which aims to pay off earlier obligations. In their place there will be one liability in the form of a consolidation loan. It’s a chance to get out of debt. In addition, we will not generate additional costs in the form of interest on late repayment of installments that are not small. This way, we will not spoil your credit history at BIK, which may mean that we will not receive a loan in the future.

 

How to apply for a difficult loan

How to apply for a difficult loan

As we said above, a difficult loan is one that is difficult to obtain. It is said by itself that it is not worth doing it alone. Especially when we don’t really know much about finances and banking products. Before we decide on the final decision and send the application to the bank, it is worth going or calling the company dealing with assistance to indebted persons. Remember that already three applications for a loan rejected by the bank may mean that we will not get a loan anywhere. So let’s consciously send every request. A company dealing with help for indebted people is an ideal solution for many reasons. One of them is the fact that a professional loan broker can negotiate the loan terms with the decision maker in the bank. In this way, we have a chance for a banking product not available in a bank branch. This significantly increases our chances of a difficult loan. Time is also important. When you have a problem, do not wait and contact a loan broker. The sooner the greater the chance of success.

Is loan refinancing profitable:How refinancing works?

A refinancing loan is a chance for all credit holders to reduce its costs.

 

How it’s possible?

loan refinancing

The market of banking products is changing day by day. Very dynamic development causes that also the prices of loans are constantly changing. As we know well, we have to pay for it when borrowing money. So we give up more than we borrow, and a large part of this sum is just the cost of borrowing such as interest rate, commission or insurance. It will also not be difficult to find a loan cheaper than the one you took several years earlier. And no wonder. However, not all of us know that the adventure with credit does not end with signing a loan agreement.

While we are well aware that you should search the available options well to find the best loan offer, we do not realize that we can also improve our situation in the course of repayment of the current liability. This is especially important for people with long-term loans, when after several years of repayment, the situation on the financial products market may change radically.

 

How refinancing works

How refinancing works

Refinancing is the opportunity to exchange your current liability for cheaper and easier repayment. This is possible thanks to the change of creditor. In practice, it looks like we are taking a whole new loan for a refinancing agreement . With the capital raised in this way, we repay current liabilities, and we have a new lower installment to pay with a new creditor.

 

Is refinancing a loan worthwhile?

Is refinancing a loan worthwhile?

However, before we decide on a refinancing loan, we should know that it is also a liability for which we will have to pay. In addition, you should carefully analyze how much the additional costs of such a change will cost us. It may turn out that the refinancing costs are so high that, despite the much more favorable offer in the form of a new loan, it will still not be profitable for us. So if our only goal is to reduce the monthly installment, we should keep this in mind.

On the other hand, if we are in a financial hole and our financial situation can be saved only by reducing the installment, refinancing the loan may be the only option. Then the cost of changing the commitment to a new one will not play a key role. It will still be a better solution to incur costs associated with the change of creditor, than generating interest on late repayment and the consequences associated with it, which can determine that in the future we will have significant problems with incurring liabilities at any bank.