Have you taken out several loans (consumer credit, mortgage) in different banks? To help you see more clearly and better manage your budget, consider buying back credit (or credit consolidation). But what is it really about? Discover the principle of this system as well as the list of supporting documents to be provided in the event of a request. To build a complete file and obtain the agreement of the bank, gather all the necessary documents. And follow our practical advice to put the odds on your side.
What is a credit redemption or credit consolidation?
The principle of credit redemption (or credit consolidation) is to refinance one or more current credits using a new single credit. From then on, you only pay one monthly payment.
On the other hand, the repurchase of credit generally involves changing banks in order to benefit from the most attractive borrowing conditions. In this case, your new financial organization buys the credits to be grouped (generally in different banks), then gives you a new single loan with more advantageous conditions.
Be aware that the repurchase or consolidation of credit makes it possible to rebalance a difficult financial situation (debt, for example). Thanks to this system, you then benefit from more advantageous conditions, which helps you to confront life events (real estate purchase, birth of a child, change in income, etc.). Finally, it is a good way to better manage your budget. Indeed, the follow-up of your accounts is simplified.
Note: the repurchase concerns consumer loans as well as real estate loans. You can completely combine these different types of loans in a single loan. Certainly, your monthly loan payments will be reduced because the new credit extends the duration of repayments, but the interest will be higher. Indeed, a repurchase of credit is most often accompanied by an increase in the total cost of the loan. To reduce the cost of buying back credit, there is only one solution: renegotiate your loan!
The supporting documents to be provided when buying back credit
your identity
- photocopy of your valid identity card (front and back), your passport or your residence permit;
- photocopy of the complete family booklet (with the children);
- photocopy of the marriage contract (if applicable). The bank wants to know the specific terms of your marriage contract. In the event of loss of your contract, contact your notary;
- photocopy of the divorce judgment (if applicable). The bank wants to know if any arrangements have been made as part of your divorce (alimony, for example). In case of loss of judgment, contact your lawyer;
Your income
If you are an employee:
- your last three payslips as well as that of December of the previous year. Your payslips must mention your seniority in the company. Otherwise, your bank will require proof of seniority (to be requested from your HRD). As for the December bulletin, it allows you to have the income from work over the year and your possible bonuses;
- proof of other income giving rise to a declaration in the income tax notice (alimony, disability pension, etc.);
- last tax notice (both sides).
If you are retired or disabled:
- last annual summary of your pensions;
- proof of other income: child pension, disability pension, property income, etc.
If you are pre-retired
- three last Assedic benefit slips or proof of FNE membership;
- proof of other income: child pension, disability pension, land income, etc.
If you are unemployed
- copy of the compensation agreement with amount and duration;
- amount of unemployment benefit;
- proof of other income: child pension, disability pension, property income, etc.
If you are in a liberal profession, craftsman, trader, company manager
- three last declarations n°2035 (BNC) or the last three tax forms (BIC);
- three latest company balance sheets for managers;
- three last tax notices so that the bank calculates an average of your last three years of income;
- proof of other income: child pension, disability pension, property income, etc.
To note : whatever your status, you must also provide the family allowance or APL certificate if you are concerned.
Your budget
- bank statements for the last three months of all your accounts (personal, joint account, professional). You need a paper statement from the bank and not an Internet statement;
- statements of your savings books;
- in the case of personal loans: loan offers and amortization schedules (provided when signing your contract). If this last document is lost, ask the lending institution for it;
- RIB or RICE of the account from which the credit redemption loan will be withdrawn;
- in the case of revolving credit and store loyalty cards with associated credit: last monthly or quarterly account statement;
- proof of tax or social security debts, employer loan, family loan, etc. ;
- proof of pensions actually paid (child, ex-spouse, etc.).
Your home
- photocopy of your full title deed if you are the owner;
- valuation of your property by a notary or a real estate agency if you are the owner;
- last rent receipt if you are a tenant;
- proof of address less than three months old (e.g. telephone, electricity, water bill, etc.).
- last housing tax if tenant, and last property tax if owner;
- certificate of accommodation and photocopy of the identity card of the person hosting you (if concerned);
- insurance certificate ;
- color photos (exterior and interior of the property) if you are the owner.
To know : the faster you send your complete file, the more your bank will be sure of your motivation and organizational capacity. Your request to buy back credits will then have a better chance of succeeding.
Read also: The advantages of credit consolidation
