The benefits of the service include:
interest rate reduction. Most often, refinancing is offered on more favorable terms than other consumer loans;
reducing the financial burden. Borrowers resort to refinancing in order to reduce the burden on the budget. In addition, this service helps prepare for large loans (for example, mortgages), which are not given with a high debt burden;
changing the term to a more convenient one. It can be shortened or extended. In the first case, overpayments are significantly reduced, in the second - monthly expenses for servicing loans;
more convenient financial management. You can combine all list of mobile number database credit products into one and choose a suitable payment date. This means that it is easier for you to plan your budget and it is more difficult to miss a payment due to carelessness;
the opportunity to get additional money at a good interest rate. If the borrower has high creditworthiness, banks can approve a larger amount than the total cost of the refinanced loans.
Disadvantages of refinancing
Refinancing loans is not always profitable. This is due to the annuity payment scheme, according to which the borrower pays mainly interest in the first half of the term. This means that refinancing in the second half of the term may not reduce, but, on the contrary, increase the borrower's overpayments. Before submitting an application, you should make a preliminary calculation. Perhaps it is worth refinancing only new loans, and repaying old ones according to the schedule.
The second disadvantage is that it may take several days to process the application, and during this time the debt on the refinanced loans will increase, as interest is accrued every day. As a result, the amount received will not be enough to fully repay the loan, and the remainder will have to be added from your own funds.
The third disadvantage of the program is the high requirements for the borrower and credit products. We will talk about this in more detail in the next section.
Terms and Conditions
Banks offer large amounts and low interest rates, and therefore have many requirements. We will tell you about each of them separately.
No overdue payments
It is impossible to refinance a loan if there is a current overdue payment on it. In this case, to reduce the debt burden, you should apply for restructuring.
In addition, banks refuse to reissue products for which there were any overdue payments. At a minimum, there should not have been any overdue payments for the last six months.