The repurchase of credit consists of grouping high interest rate loans into a single credit at a lower interest rate. It reduces receivables and reorganizes them to pay them back faster. If the amount of your credits is still manageable and you simply want to benefit from an interest rate, payment and more advantageous terms, the purchase of credit is the ideal solution.
Difference between credit renegotiation and credit redemption
Credit trading involves renegotiating loan terms with creditors for better interest rates and longer terms. This method is generally used to settle a large credit with a single creditor. On the other hand, the repurchase of credit is an operation to combine the loans of several organizations, then to take out a single loan with a reduced interest rate and a lower monthly payment.
When is the right time to buy a loan?
Credit redemption is the most suitable solution if:
- – The total amount of your loans does not exceed 50% of your income
- – You have no financial history
- – Your cash flow systematically covers the payments of your debt
- – You wish to take out another loan
Here is a scenario conducive to the repurchase of credit: suppose you have subscribed for four credits with interest rates higher than 15%. You always make your payments on time, so you have a great profile. You may qualify for a 7% unsecured consumer credit surrender, which is a much lower interest rate.
What are the requirements to be eligible for a credit surrender?
To be eligible for the repurchase of credit, one must be at least 18 years old and reside in France. You must also have a verifiable bank account and be solvent. Institutions often require the borrower to have a regular and sustainable income.
You also need to have a good financial plan to avoid over-indebtedness. And to ensure that the borrower can live properly on a daily basis, credit agencies only receive 45 to 50% of the monthly repayment income. Borrowers with excellent credit and a low debt-to-income ratio can enjoy a relatively low interest rate.
In addition, those with a medium-risk profile may qualify for an unsecured personal loan if they have a stable income and a low level of indebtedness. However, interest rates may be above average. There are also guaranteed or co-signed personal loans for those who are already over-indebted
What are the rates of a credit surrender?
Admittedly, the repurchase of credit is particularly advantageous, but it is also expensive. A number of fees are applied. This includes prepayment fees, as well as new borrower insurance fees and new fees.
The amount that can be earned through a credit surrender is calculated on the basis of the debt ratio before the credit surrender, the amount of the credit surrender compared to the value of the collateral and the repayment capacity of the borrower. borrower after the repurchase of credit.
Before applying for a credit consolidation, it is advisable to compare offers to find the best one. The request must then be confirmed by registered letter with acknowledgment of receipt. Once the letter is received, the credit agency must clear all outstanding credits to determine the amount of the interest rate and the maximum amount to be allocated for the loan.