When you want to carry out a refinancing loan there are several things you should know.
The question here is not whether or not you know how to refinance, it is whether or not you can do it.
Because people often confuse what is debt refinancing with other loans such as reunification or grouping.
And they are not the same, in refinancing really the ideal is that you negotiate with your financial institution to refinance the loans you have with it.
That is the true management when one raises a refinancing, does not go to third companies to carry out this operation because with a new loan you are processing another different operation.
Refinancing loans Do you know what it consists of?
It consists of renegotiating with the company or financial company with which you have the loans and the conditions of this financing.
That is to say, through this what you do is modify the conditions of the loan that you already have signed.
That is why it is called this way, because you are refinancing the loan that you already signed.
As you can imagine, this is not one of the steps that can be considered easy in the financial sector.
It cannot be considered in this way since finance companies are not usually willing to change the conditions of the loans they have already signed.
And I think you can understand why they act this way.
When a finance company approves a loan, it does so under certain conditions.
That later the client comes wanting to refinance his loan is something that does not like since the reason for approval is in question.
That is why we see very few financial companies that are willing to refinance loans that they have already signed.
Only some get to do it and if the client can justify a reason for it.
That is to say, a person cannot want to refinance their credits with the same financial company without there being some reason for it.
Another thing is that you have a reason that can be justified, such as a reduction in income.
If the client was approved for a loan for his salary income of € 2000 / month and then the client loses his job, it is likely that the finance company will agree to refinance the operation.
You can do it since there is a reason for it, to avoid that the credit ends up unpaid as a result of the loss of the job.
In these cases, both private financial entities and banks can be flexible when it comes to carrying out the refinancing of loans .
Refinancing of existing credits and alternatives
If you cannot or want to consider refinancing debts but you also do not want to keep the loans as you have them, the alternative is to cancel them through a new credit.
You can always go to another financial institution to cancel the other loans you have.
The best option here is that of debt reunification or loan grouping, being the option with which refinancing is confused.
This would be the ideal alternative when what we are looking for is to eliminate the relationship we have with the previous financial one.
Refinancing loans and refinancing debts