An installment loan often has a term of several years. Much can happen during this time. Often there is a desire to repay an installment loan prematurely or to take a rescheduling for a installment loan in attack. This can be the case, for example, when the general interest rate level has fallen and an installment loan is available today at significantly better terms. In principle, debt rescheduling is possible at any time. However, the notice periods for the old installment loan must be observed. In addition, the bank is generally free to demand a prepayment penalty from the customer if he exercises his right of termination. Here, it is advisable to study the relevant provisions in the credit agreement and then make a decision as to whether rescheduling in a specific case makes sense.
For a rescheduling of an installment loan apply in about the same conditions that are binding for another loan. This means that a debt rescheduling is generally only possible if the income is sufficiently high and if there are no negative private credit entries that speak against a renewed borrowing, because with a loan, which is to be used to reschedule another loan, it is basically a new loan. The bank will check in each individual case whether the conditions for a loan are met, if not, it is often difficult or even impossible to restructure debt.
A personal loan may be an alternative to a bank loan. Here, the conditions can be individually negotiated and made much more flexible than is possible with a bank loan. However, a fixed income, which allows the repayment of credit installments, should also be available here. Anyone who is interested in a loan from a foreign bank can do so in principle. For German citizens, there are also various ways to obtain a loan installment abroad and to use this money to reschedule an old loan.
Debt interest plays a crucial role in a credit comparison. If they have dropped significantly in the past, it always makes sense to consider rescheduling. Before making the decision, it is advisable to offset the possible interest savings with the prepayment penalty, which will be calculated in the specific case. Only when it comes out a significant plus, a rescheduling of a installment loan should be tackled.
Basically, debt rescheduling is possible at any bank. It is not necessary for you to limit yourself to the offers of your house bank or the bank that approved the old loan. Especially if you take the time to look for a suitable loan in peace, you will find offers that are often significantly cheaper than your previous offers. It would be ideal if you opt for a credit comparison on the Internet. There a variety of installment and consumer loans are offered, which are generally at leisure. Many of these installment loans are offered by direct or internet banks. They are very low interest because these banks can save considerable costs by eliminating a branch network. It is often possible for you to get a loan that you are more interested in apply immediately after the loan comparison. This applies regardless of whether you want to use the money for a rescheduling of a installment loan or to finance consumer goods.
With a credit comparison on the Internet, a comparison computer can serve you well. Such a comparison computer is often a fixed component of a credit comparison portal. The use of the comparison calculator is as free as the credit comparison. You can find out there and calculate an individual offer without being obliged to make use of this offer. Important search criteria for a suitable loan offer are the loan amount, the monthly loan installment, the term and the interest rates. Here you can enter your desired amounts in a search mask, then press a button to calculate and receive a tailor-made offer that meets your needs.
It is recommended to repeat a loan comparison from time to time or periodically. There are several reasons for this. Of particular note is the fact that interest rates and other conditions are constantly changing with regard to the credit offers that are on the market. If you have purchased an installment loan and can discover a cheaper offer after a few months or years, you are free to consider rescheduling the installment loan and, if you find a suitable offer, to tackle it as well.
Application and authorization
For a rescheduling of a installment loan, various steps are required. First, you need to look for a suitable loan offer. If you have found a suitable loan, you can submit the application on the Internet. If the bank has a branch in your area, you are, of course, free to visit the branch and complete the formalities there. In any case, you must complete a form provided by the bank and enclose various documents proving your solvency. Which documents are these will be communicated to you with the application. In any case, current income proofs are needed. In addition, the bank will request a copy of your employment contract. As far as possible, this employment contract should not be limited in time, but indefinite. Is your income not enough for security.
If all documents are complete and correct, a private credit information will be requested. However, this only applies to a German bank. Foreign banks or individuals who lend a loan refrain from accessing the private credit information. If all credit requirements are met, the money will be transferred within a few hours or days. Now the remaining balance still open at this time can be replaced. The repayment of the loan is now to be made to the bank, which has approved the rescheduling of the installment loan.
Rescheduling a installment loan can not be just a debt restructuring of a single loan. It is also possible to combine several loans into a single loan. With this variant, not only can interest be saved, but there is also the chance to gain a much better overview of one’s own financial situation. If two or more loans have been replaced and there is now only one loan, then only one monthly loan installment will have to be paid to a single body.
In the context of a rescheduling of a installment loan, you can also think about whether you have additional financing needs. If you have the necessary conditions, there is nothing to prevent you not only replacing the old loan, but also taking in more money than you need to replace it. This variant is particularly suitable in the event that you not only reschedule a installment loan, but also want to finance some consumer goods.