The simplest answer to the question asked in the title is, of course, “compare”, but the credit offer is so diverse that it is not easy. The identification of criteria for which such a comparison should be made can take a long time, so as a convenience I suggest reading this not too long article.
The amount of the loan
The amount of credit is more than just a criterion in itself, because it also defines which collateral the bank will require to guarantee the repayment of the loan. The products on which sales to banks depends the most, are mortgage consolidation loans, that is, for large amounts and secured by a mortgage burden for the bank. Smaller amounts can be secured in many different ways and the only limitation here is the bank’s policy. As it is not difficult to guess, individual banks accept different solutions, and the lower limit of the loan amount is also set differently. Basically, if you want to consolidate expenses below PLN 10,000, it will be difficult to find a bank that will offer attractive terms for such restructuring.
The cost of the loan
Consolidation loans in their assumptions do not differ from any other loan, but in some specific cases additional costs may arise. For example, there are situations in which loans with a fairly large fee for early repayment or risk arrears, such as payday loans, are subject to consolidation. There are some separate legal regulations developed for consolidation loans that may affect their cost. This is not a suitable place to discuss details, but it is worth going to a bank branch after a detailed valuation and not just to use the online calculator. The latter are the power of things with simplified tools and do not always allow to obtain a reliable result.
Balance of costs and repayment time
Similarly to the lower limit of the loan amount, also the shortest possible repayment time was set high in most banks. The idea is that at this time, at a lower annual interest rate, the bank managed to earn not only to cover its own costs, but also to make a profit. It must be remembered that the reduction of the monthly installments takes place at the expense of the loan price increase in the overall approach. In short – the longer the mortgage, the less impressive are the savings – the monthly installment will be reduced, but the total amount to be repaid may increase at an equally impressive pace. Therefore, all steps should be taken to correctly estimate your options for repayment of monthly obligations and to consolidate loans in such a way that the monthly installment is as high as possible. It sounds paradoxical, but such a consolidation loan will cause the smallest losses.
Do you believe opinions?
Skepticism when reading credit opinions online is really recommended. The only benefit that can be derived from this is the knowledge about the most common problems. Positive opinions should be approached with a large reserve, and to “credit review” with caution, yes, the information obtained in this way may be helpful, but the basic principle of the borrower – and this applies to all loans, not only consolidation – is that the only way to find the best loan, learn everything at the source and verify the found reviews many times.