Transfer payday loan?

If you have taken out a payday loan in the past, there is a good chance that you will pay a high interest for this. A lot higher than the current interest. for an assessment

To lower your monthly costs and to take advantage of the lower interest rate, you can retype your payday loan. You then pay off your loan early with a new loan at a lower interest rate. Whether this can also be beneficial for you depends on a number of factors. Credit Savers is happy to tell you more about the options for taking out your payday loan.

Map the costs of your current payday loan

Map the costs of your current personal loan

With a payday loan, a number of things are fixed when you take out the loan: the amount to be borrowed, the term of the loan and the interest. So a fixed interest rate is used. This has advantages and disadvantages. Because interest rates have fallen sharply in recent years, the fixed interest rate is more a disadvantage than an advantage. After all, you do not benefit from the low interest rate. With all these fixed values, you can properly calculate the costs of your loan. You can also use the remaining amount and the remaining term to calculate the costs for repaying your loan in its current form. The result of this calculation is the basis to see if you can refinance your payday loan.

What are the costs of early repayment?

What are the costs of early repayment?

The next step is to find out whether you can pay off without penalty. There is a chance that a fine must still be paid if you want to pay off early. This fine is a compensation for the missed interest on the loan. The interest consists in part of a profit margin but also of costs that they had to make themselves to borrow the money. When you received the money, the lender also had to borrow it at the interest of that moment. And of course they want those costs back. You can request the amount of the fine from your lender. 

Calculate the costs for your new loan

Calculate the costs for your new loan

You can now request quotes to determine whether your payday loan transfer is advantageous in your situation. You can already make a small calculation yourself to determine if it makes sense. On the basis of the new loan amount (this is equal to the amount that is still open for your current payday loan), the new interest rate and the new term you can calculate the costs of a new loan. Here you add up the fine for early repayment. You now know the costs for transferring your payday loan. Is this amount lower than the costs for maintaining your current loan? Then it is cheaper to take out your payday loan.

Tailored advice with a free consultation

Tailored advice with a free consultation

When you request a quote, you must also indicate the purpose for which you want to take out a loan. You can also indicate here that you want to transfer your current payday loan. In your application you state which loan you currently have, what amount you have borrowed and what is still outstanding. At you also have the option of a free consultation. You will then receive a call from an adviser who will not only review your application but will also examine your current personal situation. The adviser thinks along with you about the best solution. For example, it may be that in your situation with your financial capacity it is more favorable to continue to pay the same monthly amount that you now pay but that you have repaid your loan faster due to the lower interest rate.

In short, with a consultation you really get customized advice and you know for sure that you are taking out a loan that is both beneficial and responsible. After all, the purpose of transferring a payday loan is to improve financially and not to get into financial difficulties because a loan is more expensive than anticipated. The consultant makes a customized offer based on the consultation. If you do not want a consultation, you will receive a number of quotes and you can see for yourself which loan is best for you. 

Borrow extra money when transferring your payday loan

Do you need money right now, but do you also have a payday loan? In general you cannot take out a new loan, but it is possible to take out your current loan and then borrow a higher amount. For example, you take out a new loan for € 20,000 of which € 15,000 is used to repay your current payday loan and you can therefore borrow 5,000 euros . Your new loan will then be € 20,000 but at a lower interest rate. Your new loan will be repaid by your new lender and you will receive the extra loan amount on your own account.

What is being tested on?

Whether it is also possible for you to borrow extra money if you want to refinance your payday loan depends on your financial situation. For this, the same aspects are considered as when taking out a new loan: your salary and that of your possible partner, your housing costs and the stability of your income. Testing is also carried out again at the Credit Registration Office. This also applies if you only want to transfer your payday loan. After all, your new lender wants to run as little risk as possible and if it appears that you have payment arrears with your current loan, then a new credit company may not want to take that risk.

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