It is not uncommon to have several credits in progress and to have difficulty organizing your projects as a result. Indeed, being subject to multiple withdrawals each month, having to communicate with different interlocutors, not to mention the sometimes difficult ends of the month, all this can become burdensome. This is why today we are taking stock of a solution that would allow you to reduce the amount of your monthly payments and easily project you into new projects: the repurchase of credit.
The repurchase of credit, what purpose ?
Also commonly called credit consolidation, the principle is simple. As its name suggests, it is a matter of grouping together several loans contracted into one. The goal is to update the interest rates to market values and therefore reduce the amount of monthly payments. It is also possible to modify their durations when the borrower wishes to shorten them, or to extend them to further reduce the amount withdrawn each month. These options will allow you to better manage your budget! In addition to these financial advantages, the repurchase of credit makes it possible to have a single interlocutor, what to simplify the life and the administrative tasks which one hates so much!
How does this type of loan work?
The repurchase of credit is a banking operation proposed by financial organizations, often other than the creditor. It concerns all types of loans: from consumer credit to auto loans, student loans, work credit or even revolving credit. This also concerns real estate loans, often taken out during the acquisition of a home and bridging loans, taken out when the need for a new loan comes before having repaid that of the previous property. These credits are then transmitted to the new organization which agrees to carry out this consolidation of credits in the form of a single contract. Concerning the minimum number of credits in progress to have in order to proceed with this regrouping, it is two. Nevertheless, it is recommended to have recourse to the repurchase of credit when the number of credits in progress is at least three so that this type of product is more interesting.
The repurchase of credit, for who ?
Likewise, any borrower can potentially be eligible for this attractive solution. Yes, whether you are on a permanent contract or not, owner or tenant, young or old, active or retired, you can in any case claim the repurchase of credit, subject to having the necessary capacity to repay the type of credit requested. The latter is established on the above-mentioned criteria but also on the income and expenses that the candidate must assume (eg: rent, taxes, but also other credits in progress which would not be concerned by the regrouping).
Also all the other necessary daily expenses will be considered through a debt ratio. This percentage will express the part of your total budget that you can devote to a loan repayment, without being in difficulty with your current expenses. Although all borrowers can apply for loan consolidation, this product, like all other financial products, requires certain criteria to be met, so not everyone is eligible.
Despite taking into account the debt ratio, before subscribing to any loan, it is important to properly assess your repayment capacity beforehand and anticipate any unforeseen events, in order to limit a risk of excessive debt.
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The repurchase of credit, where ?
Credit organizations are not all aware of budget management and contingencies that debtors may face, their goal being to sell a good number of these products. They therefore simply tick the box for the maximum debt ratio. It is therefore necessary to choose your organism well. At Younited Credit, transparency is essential. This French FinTech, which has promised itself to revolutionize the credit sector, offers a 100% digital solution while conscientiously evaluating your file. Following your request, you get an agreement in principle and a final answer within 24 hours, a decision which therefore takes into account all the nuances of your budget. Another point, you send your documents online, sign electronically and assist in setting up your grouping remotely or from your sofa! For even more simplicity and convenience, no more paperwork: do your simulation today.
Read also: Can the repurchase of credits help you get out of debt?