If you are currently on a loan and want to transfer your loan, this can be beneficial. However, do not be tempted too quickly to transfer your loan with the first offer. Comparing loans always helps to transfer your loan even cheaper. Transferring a loan takes some time and if you want to save extra money, it is wise to look closely at your options.
How can you transfer your loan inexpensively?
If you want to transfer your loan inexpensively, it is important, as already indicated above, it is important to compare providers. However, this is not all, transferring a loan also requires looking closely at your own financial position. Many consumers think of a loan only on their revolving credit or personal loan. But many consumers have even more loans. Also a credit card, overdraft on the payment account or buying on installment with, for example, the Litebanks are loans. And it is interesting to borrow these kinds of money. In many cases you can save a lot of money on this. A credit card, or the overdraft on your payment account can cost you up to 15% interest per year. So keep this in mind.
Don’t be tempted too easily
This may sound strange. But what we mean by this is that it is tempting to lower your monthly expenses. In practice, we have seen that consumers opted for a higher interest rate, but a lower monthly payment. As a result, the loan was spread out endlessly. The term of your loan is extended considerably.
Transferring a loan has then become an expensive affair. Certainly with the current financing contracts you can easily and quickly check whether your loan is going in the right direction. Banks are obliged to provide you with insight into the total costs involved in the loan. They must indicate to you what you will pay in interest and repayment during the term. This is stated on the ESIC form.
Transfer personal loan
We would like to pay extra attention to transferring a personal loan. After all, transferring a personal loan is not the same for everyone. It depends on which bank and when you took out the loan. With a personal loan you are not always allowed to repay extra penalty-free in the meantime. Check this carefully in the conditions of your loan. Do you have any doubts? Then call the bank where the personal loan you wish to take out is running. This can save you a lot of money. If your bank charges a fine for early repayment, you must include it in your calculations.