MonthApril 2019

120-month Loan [10 years] – Very Low Interest Rates

First of all, a long term also means a lower repayment installment in the installment. The lower the eradication, the lower the monthly burden. This can be beneficial in two ways. The loan amount is so high that the borrower could not serve a shorter term. More exposition at

This case can occur, for example, if the house major renovations are pending and the bank offers a so-called home loan. This is earmarked real estate owners available, without that therefore a mortgage must be entered. The interest rate level ranges between classic real estate financing and installment credit.

Cars are today, unless it is not used diesel vehicles, also no bargain. Even a mid-range vehicle with sophisticated equipment can easily cost 40,000 euros or 50,000 euros. Due to the long life of the vehicles, ten years of use are not uncommon and would be congruent with the repayment term.

Another case may be that the interest rates are so low that even the extra expense caused by the longer term does not hurt, but there is enough financial leeway in the household budget.

Running times comparison

Here is a comparison with different terms:

120 months running time 84 months running time
The required regular rate is: Euro (monthly) 482.8 The required regular rate is: Euro (monthly) 586.48
Total interest and fees: Euro 7936.45 Total interest and fees: Euro 6,301.95
Total expenses: Euro 57936.45 Total expenses: Euro 56301.95
Effective annual interest rate: % pa 3,042 Effective annual interest rate: % pa 3,042

The difference per month amounts to € 103.68 to the detriment of the shorter term. The additional expense of interest, converted to the month, amounts to only 13.62 euros. In other words, despite the increase in interest expense, the longer maturity relieves the monthly budget by 90.06 euros – a point that argues in favor of the longer fixed interest rate if household disposable income is more important than the increase in interest rates.

What are the disadvantages of the long interest rate fixation?

What are the disadvantages of the long interest rate fixation?

In a low-interest phase, there are actually no disadvantages. But if you take out a loan with 120 months maturity in a high-yielding phase, you will be annoyed if the interest yields during the repayment phase. He will probably think about rescheduling. The consequences of premature repayment are described in the following section.

What should be considered when concluding a loan with a term of 120 months?

What should be considered when concluding a loan with a term of 120 months?


Interest is not everything with a loan. Sometimes the conditions are a more important aspect.

Ten years is a long time, nobody can predict how his financial situation will develop at this stage.

Ideally, the borrower will unexpectedly get paid and could replace his or her loan early or early. In this case, it would be desirable if the bank accepts early redemption without prepayment penalty. If this is not the case, the institutions charge one percent on the outstanding debt repaid over a period of more than one year. With a term of less than twelve months, the transfer costs are still 0.5 percent.

Less enjoyable would be if the borrower gets into a financial predicament. There are certainly institutions that allow their customers informally one or two installment breaks a year. Especially families with small children like to use this option in the pre-Christmas period. If the option is for two installment pauses a year, at least three installments must have been paid in between.

What special features are there?

What special features are there?

A loan with a term of 120 months is basically no different from a loan with a maturity of 48 or 60 months in terms of creditworthiness requirements and the application process.

The ever-changing application modalities are also effective for a term of 120 months. More and more banks are banking on a digital application process. This ideally includes the VideoIdent procedure from home instead of the PostIdent procedure. The Applicant may allow the Bank one-time access to its checking account during the application process. This saves him from having to photocopy salary statements and account statements and send them to the bank. Finally, the electronic signature is becoming more and more prevalent. This eliminates the printing of the application and also the postal consignment.

The digital loan application offers on the one hand significantly more comfort, on the other hand it speeds up the payment of the desired amount of money considerably.

Online credit comparison 120 months – conclusion

Online credit comparison 120 months - conclusion

A loan with a term of 120 months offers advantages, provided that premature full or partial repayment without a prepayment penalty is part of the loan agreement.

How Important is the Credit History in the Case of Loans and Cash Loans


You’ve probably come across an offer where a loan company will not require you to get any income certificates and declare that it will not check your data in the Credit Information Bureau. Does this mean that they are not completely interested in your financial situation? Maybe, however, the loan companies have other ways to check whether you will be able to pay? See for a write-up

Rigorous conditions at banks

are there quick loans?

When applying for a cash loan at the bank, we are counting on the fact that we must absolutely meet some basic conditions. First of all, banks require us to have adequate creditworthiness. Another issue to be met, of course, is having a positive credit history. All bank branches are obliged to check all their potential clients in the Credit Information Bureau.
This is the most common reason why many people decide to borrow money from companies offering their products in the non-banking sector. They are simply afraid that they are not able to meet all the conditions set by the bank? Can we really expect that the company will not check our credit history in any way?

It turns out, however, that this aspect is really different. We should start with the fact that practically all loan companies check our data in the debtors’ registers. Indeed, it does not necessarily have to be an Economic Information Bureau. But you also need to be aware that there are also other debtors’ registers. These include, among others, the Economic Information Bureau or the National Register of Debtors.

Therefore, for some companies, in fact loans without BIK are a mere advertising trick. Because anyway, our data will be checked in the above-mentioned registers of debtors. However, a separate issue is whether this issue will have any impact on the receipt of the loan.

Here, loan companies operate according to their own arrangements. Of course, they must follow the provisions of the Act on non-bank loans. But even if a person is distinguished by a negative credit history, in many websites, he still has a good chance of receiving this loan. In such circumstances, the Lender either checks the creditworthiness of his client or risks and grants him a loan for a previously submitted statement.

If you belong to people who urgently need cash, but at the same time you have a negative entry in the debtors’ registers, it is necessary to answer the question whether you will actually manage to repay the new liability. It may turn out that a negative story results only from previous negligence or missing the repayment date. But if you have financial problems all the time, unfortunately you can make your situation even worse. It is better not to take out a loan, if it is likely that you will not be able to pay it too. Because the costs of late payment in the case of non-bank loans are really high.

Consolidation Loan – is it Worth it? Is Consolidation Profitable?

Consolidation loan – is it worth it? When consolidation loan pays off? Is always consolidation a good choice? What loans can you consolidate? How banks settle early repayments and what to keep in mind. Today, we will try to provide you with the necessary information to make the right decision regarding the consolidation loan.

Let’s start from the beginning…… what is a consolidation loan and who can apply for such a loan?

A consolidation loan is an ordinary cash loan with the purpose of repaying other loans. The conditions for obtaining a consolidation loan are exactly the same as for cash loans. The applicant must present a work certificate on the income received and have a good credit history – the bank assesses the creditworthiness of the client and verifies the Retrodatabase and BIG databases. If the bank’s decision is positive, it remains only to sign a contract. The bank usually does not require any securities or guarantors, and the loan can be spread even for 12 years.

Consolidation loan – is it worth it? so what will we gain thanks to consolidation?

Consolidation loan - is it worth it? so what will we gain thanks to consolidation?

FACT 1: A consolidation loan for the repayment of other liabilities such as loans, credit cards, account limit is an ideal solution for every person who has a problem with the timely repayment of their obligations. Thanks to consolidation, instead of, for example, five installments a month, we pay only one installment, which is significantly lower – thanks to which many people can regain financial liquidity in this way.

FACT 2: A consolidation loan allows you to reduce the installment by as much as half – how is this possible? Mainly by extending the repayment period. Consolidation loans offered by most banks are available for up to 12 years. By extending the repayment period you can get a much lower installment.

FACT 3: A consolidation loan is cheaper than a regular cash loan and this is because the larger the loan amount, the better the loan conditions. Most banks offer a lower interest rate on a loan that exceeds a certain amount, as a rule, a ceiling of approximately PLN 40,000. Thus, if we combine several smaller loans into one larger one, we will obtain preferential loan terms, in other words a lower interest rate on the loan during the entire duration of the contract.

FACT 4: One credit insurance instead of a few also allows you to minimize costs and due to the early repayment of loans, which we consolidate, we must refund part of the insurance for the “unused period”.

FACT 5: A consolidation loan is definitely cheaper than credit cards and renewable limits.

FACT 6: Taking a consolidation loan, we can apply for additional cash for any purpose.

FACT 7: Thanks to the consolidation of loans and lowering the installment, we gain a greater creditworthiness, so we have a chance to get an additional amount of cash at any time.

Consolidation loan – is it worth it? summary – is a consolidation loan always worth it?

Consolidation loan - is it worth it? summary - is a consolidation loan always worth it?

In most cases, when we have several loans, converting them into a consolidation loan will be profitable. Even if we do not want to extend the duration of the contract, we will be able to get a lower installment by lowering the interest rate or refunds from the loan repayment insurance. In addition, if someone needs cash, it probably will not be a problem.

Consolidation loan – a loan offer at Credit Bank

Consolidation loan - a loan offer at Credit Bank

The consolidation loan in Credit Bank is a transparent policy and the certainty of obtaining the best offer from among all banks available on the market. Our advisers provide expert knowledge and experience. We invite you to familiarize yourself with our offer.

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