The repurchase of credit is a banking service like any other. This is a process of selling debt to take advantage of lower monthly payments. This can impact your risk of indebtedness and your standard of living in general. But who can apply for credit? And when to start? Good tips to know about what you need to know about the repurchase or consolidation of credit:
A loan buyback when you have too much loan
The repurchase of credit also bears the name of “consolidation of credit”. It is an ideal alternative for those who have too much credit and who find it difficult to manage the various monthly payments with several banks. In addition, having several loans increases the risk of over-indebtedness.
Also, we recommend a credit buyback to smooth your monthly payments and have a single payment to make instead of several per month. You just need to sell all of your loans to one bank. The condition of domiciliation of an account with banks, in exchange for a banking service is no longer. This facilitates you in particular access to a loan repurchase.
A repurchase of credit to prevent over-indebtedness
In the majority of cases, the repurchase of credit is used to prevent over-indebtedness. Do you feel that the monthly payments are starting to be difficult to manage? And this, whether you have one or more loans at the same time?
With a repurchase of credit, the bank can offer you more interesting rates and in line with those currently practiced. Namely that for a loan over more than 20 years, the average rate is 1% for an affected loan. With a credit redemption, you can take advantage of it.
But how exactly does it work? You must apply to a bank for help with early repayment of your loan with loan termination penalties. In exchange for his help, you will pay him monthly payments which should be less heavy. For the repurchase of credit to be a success and therefore allow you to avoid over-indebtedness, you must compare the offers between them, but also according to the old rates that you took advantage of with your old bank. An accounting firm in Ixelles can assist you in this regard.
A loan repurchase to free up funds in your wallet
Do you have a project you want to achieve? But you already have a loan in progress which does not allow you to release the necessary capital to do so? Or maybe your current credit takes up a huge amount of your income and impacts your debt capacity? The accounting firm in Saint-Gilles and Ixelles once again advises you on the repurchase of credit.
With heavier monthly payments and consumer loans grouped into one, you could free up funds in your portfolio to finance your project or to convince banks of the quality of your borrower profile for a new loan.
However, you must understand that applying for a credit redemption is not done lightly. You need to gather new documents and new coverage or credit redemption insurance. Note also that only loans that have been paid at 60% minimum can be the subject of a loan consolidation. But you can redeem consumer credit from banks as a debt you contracted with another individual. The goal is to have only one loan outstanding to increase the chances of success for your new loan application.