Credit portability is a type of service that most banks and financial institutions offer. It may be denied in a new bank, but the home bank can never deny you this portability, being it what you are already affiliated with.
The credit portability acts as a kind of new loan, which in this case will be provided by the egg nbank chosen. That way you are tax free if the loan is to pay off the debt with only the WillRuler Bank.
But what is credit portability?
Credit portability is a way of transferring your debt contract from one bank to another. This process has some advantages, such as the twelfth interest rates and exemptions charges (account maintenance fee and the like).
Understand Credit portability and its advantages
To understand how Functioning in the portability of the credit before, we need to find out what it is for and what its advantages. As stated earlier, this type of portability allows you to transfer debt from one bank or financial institution to another.
With this you can achieve some advantages, among them:
- Better financial condition with lower and attractive interest rates;
- Decreased distance between the bank and the place you live;
- Change in the quality of care and service delivery.
How does portability work?
Well, it involves migrating your debt from one place to another, so you have to keep in mind the new bank you want to move to. It is therefore crucial that you see the availability of this new bank in your case, because the chosen institution may refuse you. However, once chosen and accepted, the bank to which you are already affiliated will not be able to prevent migration and is required to assist the client with documentation and processing.
However, the new bank must send the proposal to the bank in which you were a customer. This way, this source database can present a counterproposal and make you a better offer, then stay tuned. If the home bank does not submit any counter-proposal, the credit will automatically go to the new bank.
The Types of Credit Portability
There are some types of bank portability, but when it comes to credit portability, some modalities come into play, namely:
THE payroll credit portability
This kind of portability is related to the transfer of credit consignment and a bank to the other. The credit factored in itself is one in which your parcels will be directly debited from your paycheck. Therefore, banks maintain a lower interest rate, as the return on this borrowed money is assured.
The portability of funding
This type of financing portability is tied to a credit the bank has granted you to purchase goods, be they real estate, vehicles or appliances. So this portability consists of transferring this financed credit from the home bank to the new bank.
Thus, you get better deals and even exemption from some fees you would pay if you were at the bank you were affiliated with.
The portability of debts
This kind of debt portability It consists of repaying your debts with the current bank and making a new type of loan with that bank to which you will migrate.
However, unlike the previous bank, you will have lower interest rates on your debt installments and other benefits.
How to make credit portability and what debts can be transferred
The first step to transfer debt to another bank is to have at hand information on the contract already signed with your bank or current lender, be it a loan agreement, payroll loans or financing.
The information you will need to request to migrate from bank includes:
- The number of the contract in question;
- Your current outstanding balance;
- A statement of its evolution of this balance demonstrates the evolution of the outstanding balance;
- The type of credit portability chosen;
- Consequently the form of payment used;
- All interest rates present in the contract on a discriminatory basis;
- Go full color and sum it up to the cartoons (especially the amount of the cartoons, since you can trade them), cam also, in this regard, the amount of each installment;
- Also enter the due date of the last installment of the operation.
Keep in mind that these requirements vary with each financial institution or bank. However, with these documents, you will already charge a portion or even all required documents. Lastly, you should seek credit portability whenever you are feeling injured from the fees charged by your bank. That if you can not afford to repay their debts or want more convenience regarding location.
So use credit portability In your favor with financial education, research at more than one institution before choosing which one to migrate to and always negotiate better conditions.