Rescheduling is possible at any time with an installment loan, provided that the loan agreement was concluded at the earliest on 10 June 2010. Since that date, the exclusion of the right to early loan repayment for consumer credit is no longer permitted.
The most common reason for the desired rescheduling of installment loans is the ability to replace expensive loans with a cheaper loan. Another reason for the replacement of existing loan liabilities is the rejection of the current bank against the request for an extension of the term and the associated reduction in monthly installments. Banks specializing in installment loan rescheduling often encourage simplification of repayment when bank customers only to serve a single loan instead of multiple loan agreements. However, given the usual direct debit procedure for loan repayment, the reduction in the number of creditors without any additional benefits does not constitute an actual benefit to a bank client.
Find the right credit to reschedule
Before they apply for rescheduling an installment loan, bank customers conduct a credit comparison. On the one hand, they pay attention to the effective annual interest rate and, on the other hand, to the most flexible repayment agreement possible. Such is the right to free special repayments and the option of an occasional installment break. For some banks, the credit comparison inevitably indicates an average interest rate, since these institutions charge interest-based interest rates. The personal lending rate learns a prospective customer by making a non-binding request.
Some banks offer special debt rescheduling loans. Their interest rates are lower than for non-promissory loans from the same bank. However, they are not necessarily cheaper than the offers of other banks that offer no special conditions for the rescheduling of a installment loan. Savings are made to bank customers when the interest savings are higher than any prepayment interest that may be payable for the early repayment of the existing loans.
Many banks require a debt installment debt rescheduling to include all existing liabilities in the new loan. Exemptions for lending associated with particularly cheap loans, such as car loans and trade installments, are common. If an applicant does not wish to integrate another bank loan into the rescheduling, it will actively seek a financial institution through the credit comparison that accepts the non-inclusion of individual existing loans in the new installment loan.
What special features apply to rescheduling?
The new bank transfers the individual installments in the rescheduling of a installment loan directly to the previous credit accounts and thus balances them. Thanks to this approach, the bank can be assured that the client will actually use the new loan as requested for the debt restructuring of existing liabilities. Otherwise, it would have to carry out the budgetary accounts with the previous installments and the new credit installments. The financial institution transfers to the account of the borrower the portion of the loan intended for the purpose of account balancing as well as the amount used for the top-up. A credit increase is common in connection with a rescheduling for a installment loan. To a lesser extent, it is even mostly indispensable, as many financial institutions lend only through 1000 divisible amounts.
The monthly installments should not be too high for a debt rescheduling loan. It is not expedient if the customer finances the monthly payments after the repayment period for a installment loan using the disposition credit during the repayment period. The longest possible repayment term for loan debt automatically leads to low monthly installments.
The rescheduling with poor credit rating
If the creditworthiness of the borrower has deteriorated since the original borrowing, it is difficult to find a favorable rescheduling of the installment loan. The likelihood of a loan commitment increases if the bank customer applies for the new loan through a reputable broker. He recognizes such a fact that he only has to pay a reasonable commission and no pre-cost.
Another option for requesting a favorable loan for the rescheduling of an existing installment loan, despite a meanwhile deteriorated creditworthiness, is the joint application with another customer. Most borrowers choose the partner, but in principle, any natural person with good private credit and regular income from work as a borrower is conceivable. For a few banks, however, there is a restriction that both borrowers must be reachable at the same address.
An alternative when borrowing to reschedule a installment loan is the organizing private loan. The inclusion as a loan seeker does not preclude a soft negative feature in the credit report. For actual lending, in addition to being accepted as a member seeking credit by the platform operator, full subscription of a specific loan request by the private lenders registered on it is required. The likelihood of fast lending on a private platform increases as the request details why it wishes to reschedule an installment loan.