The reunification of loans is an operation that allows the loanor to group or unify their credits in a single loan. It is a financial product that is used when there is a high level of short-term loan as a consequence of having contracted different fast or traditional loans . When the beneficiary does not have the solvency or feels too choked to pay all the bills, it is common to resort to this type of operation.
What benefits does the reunification of loans have?
Thanks to the unification of the loans, the borrower has the possibility of obtaining a loan that allows him to cancel all the credits, or the most expensive ones, and keep only one monthly payment to cover the previous payments. That is, they request a loan to pay their different loans, can get more advantageous interest or extend the return period.
Obviously, if a person can face the credits contracted each month, they will not be interested in this type of operations because it is like starting over. However, in case of feeling drowned and without liquidity, this type of operation allows individuals or companies to recover their solvency and return the money in a more comfortable way.
Those interested can consolidate different types of credits, card loan, commercial financing, personal loans or consumer loans, among others. The conditions for each case depend on the type of agreement reached with the financial institution, the customer’s score or solvency level, the amount, the guarantees and the repayment terms.
In some cases, a guarantee or guarantee will not be required, but the applicant will be required to have a regular income and a solvency that allows him to deal with the new letter. The other alternative that is also practiced is the consolidation of loans with mortgage collateral, that is, extending an existing mortgage or creating a new one. In this case, if a default is incurred, the bank or the financial institution will dispose of the property to guarantee the collection of the credit.
Issues to take into account when consolidating loans
The unification of loans is an operation that should be studied and calculated carefully. It is an option that allows reducing the cost of current credits, improving solvency levels and simplifying return processes.
However, before requesting a loan to pay for others that have already been contracted, it is important to analyze personal finances well, study the conditions of the new offer and the active loans. In order to be paid, the new credit should offer a lower interest rate than the current loans and the conditions must also be more advantageous.
The desirable condition is that the operation of reunifying the loans is more beneficial for the borrower. However, reality depends on your personal circumstances. If the person has defaults in his credit history, some of his current loans are in default, if he does not have guarantees or income to face the return, in that case the entity will impose tougher conditions.
If the beneficiary is in a situation where it is impossible for him to face all the payments he has each month and does not want to enter into legal proceedings for claiming loans, the reunification of loans, even though it is more expensive, will be interesting for him . You can reduce your monthly loan since short-term loans will become medium or long. Of course, if you increase the return periods, interest also increases.
The advantages of fast loans or online credits
Online credits have become one of the options to which more and more consumers are turning. The management of loans through the network allows the applicant to have all the information about the operation in a few minutes. Portals such as Atrapacrédito have a loan comparison tool so that borrowers can check different offers of the loan.
In the same portal, the petitioners can include the information they want about the amount and the deadlines for return to view the proposals of the different financial entities that work with Atrapacrédito . Therefore, at the click of a click you can make a real calculation of the costs of a loan reunification through the request of one of these quick loans .
The applicant can make the request through the Internet including the data requested by the platform. Once the request is made, the financial institution will analyze its score through an automatic system to assess its level of risk. Depending on the amount and solvency, the credit will be approved.
Another advantage of consolidating loans through online loans is that the vast majority does not require guarantees or guarantees, even granted, even if the applicant is included in a list of defaulters or does not have an unblemished credit history. This type of financing is more flexible in its conditions than those of traditional banking.
Now, it is worth bearing in mind that, at more risk, more interest and harder conditions. It is important to know why the financial institution charges the uncertainty of an operation, regardless of whether it operates through the Internet or through other conventional channels. Therefore, before entering into a situation of delay or default, it is advisable to look for alternatives that facilitate the assumption of the loans contracted.
Many companies and many families have resorted to loan reunification operations with quick loans or online credits to reduce their short-term loan. Thanks to this, they have maintained a good credit record, they have benefited from better conditions in the contract and have improved their solvency.
It is important to always have all the information before signing a new loan, any doubt should be consulted because the rubric accepts the contract with all its conditions.