To answer the title question, we should first explain what refinancing is and what is the purpose of the liabilities incurred.
Namely, refinancing a loan or credit is a change of current commitment to new and better. We have a chance thanks to the possibility of changing our creditor, which aims to improve credit conditions, i.e. simply changing an expensive product into a cheaper one.
What is refinancing
The financial products market is changing day by day. Today uses the offer tomorrow may not be. It could also happen that we were forced to take a loan when they were very expensive.
Be simply not well prepared and decided on a loan that was not favorable to us. However, thanks to a refinancing loan or refinancing loan, we can change our disadvantage.
For whom refinancing?
If we repay a contract loan , which is very expensive and it has a significant impact on our finances. The installment of the old loan is so high that we can barely close our household budget, and maybe even we often lack the funds.
We want to replace the unfavorable loan with a new and cheaper one. We want to change the terms of the loan and you will reduce the costs of interest and loan service, we should consider the possibility of taking a refinancing loan or refinancing loan.
This question cannot be clearly answered. However, it is necessary to return to the basic division into credit and loan, where the former is only a product offered by banks, and the latter is also available in non-bank institutions.
Refinancing loan or refinancing loan
This means, no less, than the fact that we get a refinancing loan only in a bank and a refinancing loan also in a non-bank institution. Therefore, in order to apply for a refinancing loan, we must go through the standard lending procedure and demonstrate adequate creditworthiness (financial standing, credit history). Which means that not everyone will have a chance. And for the needs of these people, the offer of private lenders and refinancing loan has just appeared, which puts significantly less fortifications on potential clients.
It is undeniable that a loan will be cheaper than a loan. However, not every bank will want to grant a refinancing loan, and a non-bank company will refinance a loan anyway. Therefore, everything depends primarily on the situation we are in.