To consolidate all your credits into one and only have one monthly payment to pay, the repurchase of credit represents an ideal solution. But how to go about redeeming your loan? Indeed, there are different ways to proceed, find out which ones. And follow our advice to find the best solution for your situation. When should you use a broker? How to compare the offers of credit redemption organizations? How to renegotiate your loan with your lending bank? We tell you everything about the different ways to redeem your credit.
What is a credit redemption?
The repurchase of credit (or grouping, or gathering of loans) has as a principle the refinancing of one or more credits in progress by using a single credit. From then on, you only have one monthly payment instead of several to repay.
Be aware that the repurchase of credit generally involves a change of bank. And this, in order to take advantage of better borrowing conditions. Your new financial institution then buys the credits to be consolidated and makes you a new single loan with advantageous conditions.
In addition, the gathering of credit makes it possible to rebalance a financial situation. This can be an effective solution in the event of over-indebtedness, for example. This is a good way to better manage your budget. And the follow-up of your accounts is simplified.
Note that the repurchases of credits concern both real estate loans and consumer loans or revolving loans, or other debts (late payment of taxes, unpaid gas or water bills, etc.). Moreover, you can quite combine these different loans in a single loan.
Finally, understand that your monthly payments will be reduced. However, the duration of the credit will be extended. And the interest will also be higher. Indeed, a repurchase of credit is generally accompanied by an increase in the total cost of the loan. However, you can completely renegotiate your loan.
How to buy back credit: the different ways
As with a conventional loan, there are several ways to redeem your credits. In fact, the way depends on the amount, but also on the type of credit and the time you want to allocate to this search for loan redemption.
Buy credit online
What if you went through a platform on the Internet to redeem your current credits? This approach is quick compared to more traditional ways.
You directly indicate the necessary information and all the information is then transmitted to the organization responsible for the repurchase of credit. Then, he will give you an answer quickly.
On the other hand, carrying out the formalities online has a major advantage: the request is more suited to your needs because you retain control over your request.
Note that if your redemption request does not include a mortgage, the platform will offer you a personal loan.
And you have every right to ask for an additional sum of money to add to the repurchase of credit in order to finance a new personal project.
Use a broker to buy back credit
You will easily find a broker who takes care of credit redemptions. This professional will analyze your file and present it to several establishments.
In addition, using a broker will save you considerable time. An ideal solution if you have little time to devote to finding a credit redemption organization.
The broker will also take care of all the procedures for a commission, sometimes high. Always compare prices before choosing your broker.
How to compare credit redemption organizations?
If you decide to canvass credit redemption organizations on your own or if you are hesitating between the two possible ways to proceed, it is important to know a few key elements to establish a comparison.
First, know that each credit union is unique. It is your project and your request that will guide you towards a way to redeem your current credit.
Then, make a comparison between the different offers available by looking at the main elements such as the interest rate, the repayment period and the amount of the monthly payments.
Then, be vigilant about the additional conditions and clauses that accompany your new credit.
Finally, whether you call on a broker or act alone, it is essential to look at the cost of the transaction.
The supporting documents to be provided when buying back credit
When consolidating loans, you will need to provide a number of supporting documents concerning:
- your identity: photocopy of your identity document, the complete family booklet, the marriage contract or the divorce decree (if necessary, if concerned);
- your income: your last three payslips as well as that of December of the previous year, proof of other income, the last tax notice;
- your budget: bank statements for the last three months of all your accounts, statements of your savings accounts, bank details, proof of tax or social security debts, proof of pensions actually paid;
- your home: photocopy of your complete title deed and estimate 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, the latest housing tax, an insurance certificate, color photos of the property (if owner).
Renegotiate with your lending bank, an alternative solution to buyout?
This way of proceeding is the simplest and fastest. However, it requires a good sense of negotiation. Indeed, you can renegotiate directly with the bank with which you took out your credit. This will save you a change of establishment as part of a redemption or collection of credits. And this approach is also proving interesting because of the decline in borrowing rates in recent years.
Be careful, take into account the renegotiation conditions in your calculations because costs relating to the new contract apply. And be aware that at the time of signing, you normally have no money to advance. Finally, be careful about the additional conditions. For example, some banks require the opening of a new account as a PEL. Feel free to set your own terms for the negotiation.
Read also: Renegotiation or repurchase of credit, what differences?