You can refinance a loan when you can take advantage of a lower interest rate, or when you have several loans that you want to combine. There are two cases in which you ensure that there is more clarity when you transfer a loan, or that you can reduce the monthly costs. On the other hand, take into account any costs for the transfer and the administration that will be included. Does the transfer of a loan give you more than it costs? You can easily calculate this online.
Sharper interest for a credit
For example, you can refinance a loan when it still has a reasonable term and the interest rate is much lower at the moment. Many people close their mortgages at that time, but other loans can also be beneficial. For example, are you currently paying 9% interest on a personal loan, while you can now also take out 6% of it? Then, rescheduling can be interesting, although it is important to pay close attention to any penalty interest.
Do you have a revolving credit? In that case, transferring is cheaper sooner, since there is no penalty interest. Therefore, keep an eye on the market, especially with a revolving credit, and close the loan if the variable interest rate of your current lender does not move sufficiently downwards with the rest of the market.
Combine multiple loans
You can also refinance a loan when you have several loans that do not exactly contribute to the overview. For example, do you have 4 different loans with a combined debt of around € 10,000? Then it is often better to take out a new loan for that amount and thus to repay the existing loans. That way you will have a complete overview of your credit and you may pay a sharper interest. Even if you don’t get along with it in terms of costs (but it doesn’t cost you anything extra), it is worth transferring a loan. You thus ensure that you obtain more clarity and you reduce the chance of late payment, which can prevent a negative BKR listing.
Calculate and transfer an online loan
Do you want to refinance a loan and are you curious about the costs? You can calculate a loan online to see what it will cost you monthly. In addition, you can ask the bank for the costs of any penalty interest when you want to pay off a personal loan early. In that regard, you can calculate your loan online to find out whether credit transfer is worth it. Do you want to refinance a loan? Then you can request a new credit online, and then contact your current lender to get everything right.