When changing banks, should all its current credits be grouped together? | Payday loan consolidation at new bank

A change of bank can be done independently of a payday loan consolidation operation, it is also possible to use this financing without informing his bank, through another financial institution.

Payday loan consolidation and bank domiciliation

Credit consolidation and bank domiciliation

The bank domiciliation is usually mandatory for home loans, that is to say that a borrower who subscribes a home loan must domiciliate his income from the lender, a logical counterpart often accompanied by a commercial gesture. However, in the event of a change of bank, can we still keep the credit in progress or should it be grouped with the other loans? The credit consolidation is done independently of the domiciliation, usually they are credit institutions specialized only in financing and not in the management of bank accounts.

It is not mandatory to consolidate its credits but when the monthly installments accumulate, it is strongly advised to proceed to reduce the share of maturities and especially their amounts. The loan consolidation can be done before or after the change of bank, be it a conventional bank or an online bank.

Group your credits without changing your bank

Group your credits without changing your bank

Loan consolidation can therefore be done independently of the bank, so the borrower can solicit agencies or online comparators to find the best offer and buy back the loans. It is also not obliged to inform the lending institutions that have granted the previous loans, the operation is therefore set up freely and these institutions will be informed during early repayment.

The borrower can keep his current bank and in case of future change, the credit consolidation will not be linked to his bank account, it will simply inform the lender of the change to follow the samples and avoid late payments that accumulated, can lead to a situation of over-indebtedness (banking).

One loan and one new bank

One loan and one new bank

The change of bank can also be an opportunity to review its loan repayments and readjust, that is what some borrowers when they decide to switch to the competition and some banks of details offer these operations, a sudden double for those credit institutions that can benefit from financing and management of bank accounts. However, we must be attentive to the total cost of credit but also to the expectations of loan consolidation, that is to say that some will want a smaller monthly payment while others hope to standardize rates.

The ideal remains to make a request for redemption of online loans, it allows to take the temperature on the rates practiced at the moment and can compare with the offers of conventional banks or online banks. Note that this approach is without commitment and especially offered for free. It is good to do the same comparative study when changing banks.

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