Need credit consolidation?

Credit consolidation is a financial service offered by website. It is actually a combination of several smaller loans into one large loan in order to reduce the monthly loan repayments. So you will pay less than if you paid the loans separately. It is also very important for this loan that thanks to this loan you can get a lower interest rate and even a longer maturity of the loan.

You can use consolidation to: consolidate loans from banks and non-banks, to pay off purchases through installment companies, to pay credit cards, or to pay out overdrafts. The equipment of a consolidation loan is, of course, free of charge, it is usually enough that you fill out a short online application and write how much money you pay per month, resp. how much do you still have to pay?

Consolidation of bank loans

Consolidation of bank loans

The bank consolidation loan is available only to clients who make their current loans, resp. commitments were paid on time. So for those who are not in the registers of debtors. And this can be a big problem for many people who need to reduce their monthly loan payments. In this case, only non-bank loans remain to be tried. However, everything is assessed individually and you may also be approved for a loan at the bank, depending on your creditworthiness for the bank or the guarantee. You can request a loan consolidation, for example.

Consolidation of loans in a non – banking company

Consolidation of loans in a non - banking company

A non-bank consolidation loan is very popular mainly because companies provide it even without examining the register of borrowers, so almost anyone can apply for a loan merger. Of course, when consolidating a loan through a non-banking company, you have to count on a higher interest rate than in a bank. It is a tax mainly because non-banking entities do not verify your creditworthiness, you are simply a risky client for them, so they must somehow defend themselves against possible non-payment.

Conditions for consolidation

Conditions for consolidation


Each company assesses the client individually, but for most consolidation loans you need to meet at least the following conditions:

  • age from 18 years
  • you currently have at least 2 different outstanding financial obligations (loan, credit payment, overdraft, …)
  • confirmation of the amounts that you still need to repay to individual companies, while you must also have confirmation that these loans can be repaid early. However, be aware that some companies may charge you for early repayment, so consolidation may be more expensive.

What documents do I need to consolidate the loan?

  • When consolidating loans, you need to submit a receipt – the amount of net monthly income, 2 identity documents (ID, passport, driver’s license, birth certificate, insurance card)
  • bank statement (3-6 months depending on the company)
  • the loan agreements you have just entered into
  • proof of your permanent residence (rent payments, sipo, electricity invoice, gas, mobile phone)

The benefits of consolidating loans

  • simplification of repayment – only one payment per month
  • more favorable interest than when repaying loans alone
  • extension of the loan repayment period = reduction of the monthly installment
  • without liability (guarantor or real estate)

Disadvantages of loan consolidation

  • the need to present the amount of net income
  • early repayment charges on other loans
  • the limited maximum amount of consolidation – eg up to 20,000 dollars (depending on the specific company)

Today, virtually all banks and non-banking companies offer loan consolidation, while bank offers the best conditions for consolidation within banks.

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