Consolidated credit: can I combine credits with different terms?

Can I combine credits with different terms?

It may be possible. In a consolidation, different credits are considered in a new operation, subject to the credit institution's analysis.

That's why the fact that a loan ends in two years and another in five years doesn't automatically mean they have to keep those terms.

The new operation will have its own conditions.

What happens to old terms?

The deadlines of previous credits stop being the main reference after they are settled and replaced by the new operation.

Consolidated credit will have:

a new amount;
a new rate;
a new term;
a new payment;
new charges.

It's exactly why you should compare the current situation with the new proposal.

Longer term can lower the installment?

It can. The longer the repayment period, the more the capital may be diluted over time, and under certain conditions, the lower the monthly payment.

Example: Imagine two credits:

Credit A

8.000 €
24 months left

Credit B

12.000 €
faltam 60 meses

A new consolidation may combine the two values in a single operation.

If the new term is longer than 60 months, the installment may be lower than the current total, but the payment period will also be longer.

Should I choose the longest term?

Not necessarily. The term choice should consider the monthly budget and total cost. A longer term may provide greater monthly financial margin, but may increase the total interest paid.

What if a credit is about to end?

This is a situation that deserves attention. If little time is left to finish a loan, you should compare the cost of keeping it until the end with the cost of including it in a new operation. There is no one-size-fits-all answer.

What should you compare?

Before consolidating, place side by side:

Current situation New consolidation
Total installments New installment
Remaining terms New term
Current rates New rate
Charges New charges
Remaining cost Total cost of the new operation

Credits with different terms can, depending on the operation, be combined into a new consolidation. But don't just look at the reduction of the installment. The term and total cost are equally important.

Want to understand what the impact of consolidating your credits could be? Do a free simulation at Poupança no Minuto and find out the flexibility you could have in your budget.

FAQ

Can I consolidate a loan that ends soon?

It may be possible, but it's important to compare the cost of keeping it until the end with the cost of including it in the new operation.

Do all credits have the same term?

When gathered in a new operation, they become subject to the conditions of the new contract.

Does a longer term always reduce the installment?

Under certain conditions, it can reduce the payment, but may increase the total cost.

Should I choose the longest term?

Not necessarily. It depends on your monthly ability and the total cost you want to take on.