On average, every second adult in the country has financial liabilities to banks. Many people already pay back not one, but several loans at the same time. However, sometimes it is necessary to obtain additional funds, which would mean incurring another commitment. Consolidation with additional cash comes in handy. Check what it is about.
More and more people are deciding to consolidate loans, because the simultaneous repayment of several credit obligations can cause considerable inconvenience – mainly with timely repayment. Combining loans into one helps eliminate this problem. However, some banks go a step further – they allow you to apply for additional funds.
Consolidation with additional cash – how does it work?
Consolidation with additional cash is a standard consolidation loan whose amount is higher than the sum of repayment obligations. The borrower can therefore use the remaining amount, allocating it for any purpose. Thanks to this, it is possible to finance further expenses, but without overburdening the household budget. The installment is much lower, which results, among others from:
- extending the loan period – up to 15 years,
- more favorable interest rate – the APRC may be much lower compared to eg the APRC of a cash loan.
An additional advantage is standardizing the repayment date, which eliminates the risk of possible delays in settling the liability.
Can anyone count on consolidation with additional cash?
The main criterion for granting a consolidation loan with additional cash is creditworthiness. Based on the amount of monthly income, the bank determines whether the borrower can handle the repayment of a larger loan. This means that consolidation with additional cash is not available to everyone – a sufficiently high salary must be demonstrated.
It is worth emphasizing that it is also necessary to meet other conditions, among which credit history plays an important role. The more credible the borrower is, the better the chances of getting a consolidation loan with a solid cash injection.
How to get a profitable consolidation loan?
For a consolidation with additional cash to be profitable, you cannot decide on a random offer. You have to compare the options available, taking into account many factors.
Importance is played by aspects such as:
- APRC – the current annual interest rate includes not only interest, but also non-interest costs,
- loan period – some banks offer financing for up to 15 years,
- formalities required – consolidation with additional cash is not always based on identical procedures.
If you care about a really good offer, surround yourself with the support of specialists. For experts consolidation loans are everyday life. They have extensive knowledge and experience, thanks to which they help in choosing the optimal offer. They are able to obtain financing even when the borrower is less likely to obtain a loan on their own.