Switching providers is worthwhile
A precise comparison of the conditions is not only worthwhile when you take out a new loan. At the moment, interest rates are so low that it can also make sense to compare an existing loan with other offers and that it is worth changing the loan provider. If a new loan agreement can be concluded at lower interest rates, it is worthwhile in any case, especially with outstanding loan amounts and with longer terms.
The consumer credit law offers the opportunity to change providers, because it is said here that personal loans can be redeemed at any time and without giving specific reasons. No additional fees may apply. The scheme allows loans to be redeemed early and transferred to another lender. The savings potential is large and depends primarily on the interest rate and the remaining credit amount.
It makes sense to check beforehand
Please do not prematurely replace and change providers, but subject your project to a thorough examination. In some cases, the providers lure with very low interest rates, but only offer so-called shop window prices. This means that when you take a closer look, the interest rates are significantly higher. Independent consultants can assess whether it is just a tempting offer or whether the offer is realistic and serious.
Also remember the entry at the central office for credit information. Credit applications are reported and registered there, rejected loan applications are saved for two years and can be viewed by all banks. For this reason too, the previous comparison is important! It is best to do the following:
- Define the remaining loan amount and the term of the existing loan as well as the current interest rate to be paid.
- Find various offers from reputable credit institutions that are suitable for you.
- Consult an independent advisor or try to compare yourself. What would be the interest you would have to pay for the loan amount that is currently to be repaid?
- If the evaluation is positive: approach the new bank and submit a loan application.
You no longer have to worry about repaying the old loan, as a rule the new bank will take care of that. It cancels the existing loan and replaces the previous bank. With the loan amount that you receive from the new bank, the existing loan is replaced in one fell swoop. Then you pay the agreed installments to the new bank.
Conclusion on the loan repayment
Replacing the loan can make sense if the existing loan turns out to be too expensive and there are offers with significantly lower interest rates. An independent advisor can help you with a comparison and let you know whether it is worth repaying the old loan. Again, you can have one Use credit comparison and decide whether a change makes sense.
