A compound loan is a convenient way to save on your loan management costsUncategorized
Lenders make a loan offer based on a customer-specific assessment. The actual annual interest rate offered may vary between a minimum of 4.5% and a maximum of 30.6%. The loan period offered varies from 1 to 15 years. The loan amounts offered are between USD 2000 and USD 60,000 and the loan amount offered may be less or greater than the loan amount applied for. The nominal interest rate offered shall be a maximum of 20% and the other costs of the loan shall be limited to USD 150 or 3.65% of the amount of the loan, whichever is lower.
More and more people are finding themselves in the position of having accumulated several small loans over the years. Usually these small loans or levies are taken for a momentary quick need for money, such as repairing a broken washing machine or buying a new washing machine. Typical of fast leverage is that the loan amounts are often lower and the interest and costs of the loan high.
For this reason, the compound loan has become more popular year after year. It is desired to combine several small or medium-sized loans into a single, much cheaper loan. That certainly sounds like a very sensible idea.
Where are the loans usually taken from?
The ordinary citizen usually has one or more loans to pay. The most common types of loans are surely mortgages and car loans or car financing. Other general loans include home improvement loans and various installments, which are also fully comparable to consumer loans. Few actually accept the installment agreement to take consumer credit, but that’s what it really is. The finance company grants a specific payment period for the product or service you are purchasing. The installment contract usually also includes an increase in the price of the product or service including all the costs of the installment contract. These costs include, for example: the account opening fee, the account management fees, the billing surcharges and any interest that may be charged on the credit.
Some shops or companies also grant installment contracts for their products or services that are completely free of charge. However, with these offers, it is worth noting that if you do not pay your contract installments in full accordance with the repayment schedule, there will be a large increase in the installment.
What kind of loans can be combined?
Almost all loans can be combined. Of course, the only exception is if your loan cannot be repaid early. Usually, all prepayments, consumer loans and installments are repayable in full before the loan expires. In other words, almost all loans can be combined into one loan.
Combining loans will save you cash
Even a common sense person says it is better to pay off a loan as big as several small loans. In the following example, I will illustrate a bit of the general situation of how a combination of loans can save a nice amount of money.
Imagine that person A has 5 different credit rates, each with a billing fee of USD 6 per month. In addition to the billing surcharge, each credit has an account management fee of USD 12 per month. Monthly expenses will decrease by a total of 90 dollars. This expense does not reduce the debt by a cent. By combining the loans into a single loan, person A saves you $ 72 per month in the cost of the loan alone. This $ 72 savings means a yearly saving of $ 864. In addition to saving on costs, by bidding on a loan, person A is likely to get a much lower interest rate on his loan, which again means greater annual savings in repaying the loan.
Where can I combine my loans?
Today, almost every bank and several financial institutions offer loan consolidation. Given the large supply, it is profitable to tender. Our service makes tendering easy and fast. By filling out a loan application you will get several different loan offers from different banks and financial institutions.
Can a credit history combine loans?
Unfortunately, a person who has lost their credit history cannot usually obtain a loan from a bank or financial institution. The reason for this is very simple. Lenders are playing, so to speak, confident in this matter. Even if a person has got their money in order, it is usually almost impossible for a person who has lost credit information to obtain a loan. Perhaps the best option for a borrower without a credit history is to apply for debt consolidation through a guarantee fund. The Guarantee Fund assists those affected by a defect in their financial situation. In some cases, the guarantee fund may also provide a guarantee for the loan. You can read more about the Guarantee Fund guarantee here.