As you languish under the weight of many credits, you have heard of vague loan redemption. You want to know who accepts it easily? This article that answers the question: credit redemption: who accepts it easily? is for you.
What is a redemption of credits and why consider one?
When an institution specialized in the redemption of credits is brought to carry out this type of operation for you, it takes again all the loans which you have subscribed with financial organizations. It pays all your monthly payments and early repayment benefits. Therefore, you will pay your debts to a single creditor.
Two scenarios can justify a redemption of credits:
1 / You have taken several consumer loans, because at the time, the offers seemed interesting to you. Except that with time, this accumulation of loans begins to weigh you down and you want to simplify your life. Or other eventuality, any event (family problem, unemployment …) disrupts your budget organization by suddenly decreasing your income. Finally, your monthly payments start strongly your budget and not far from the disaster, you want to avoid over-indebtedness. The redemption of credits (or pooling of credits) can then effectively be a solution to your financial difficulties. You will have only one interlocutor, as well as a single monthly payment, a single borrower insurance and a single maturity to honor. This should greatly facilitate your financial management and allow you to bounce back more serenely.
2 / The second case concerns mainly the mortgage loan: while this type of loan usually extends over several years, the real estate market can improve at certain times. Interest rates are going down and lending institutions are letting you know. Therefore, you want to enjoy it, considering that your monthly payments are more important than they should be. You wonder if a credit to the creditor who advertises it would not be more advantageous. You can then effectively consider a redemption of credits, and more specifically to a home loan buyback, with a lower interest rate and a total amortized cost (if you stay with your initial banker, you will instead proceed to a renegotiation of your credit).
Who easily accepts a credit surrender?
An application to redeem credits will be accepted more easily according to certain criteria, regardless of the lending institution you will contact. Thus, there is more interest in knowing these criteria.
Basically, a buy back of credits does not differ from any credit. As with any loan, you will not be able to claim credits if you are prohibited from borrowing, that is, your name is on the National Register of Personal Credit Reimbursement Incidents (FICP). Bank of France. You will not be able to request a redemption of credits if you appear on the central file of the unpaid checks (FCC), synonymous of prohibited banking (without right to a checkbook or a credit card).
Secondly, not all banking organizations practice credit buybacks as this is a more sensitive transaction. In addition, some specialized agencies estimate that loans should ideally exceed 20000 euros and that income should not be too low (less than 1500 euros per month). In parallel, several banks refuse a purchase of credits if the total cost is less than 10,000 euros.
Specialized credit institutions will also decide to proceed with this transaction on the basis of scores. Like any credit, these are related to your annual and monthly expenses, your family situation (marital status, children and schooling, real estate project of the family …), your sources of income (the stability of these or not, …). Then the scores relate to the number and amounts of your credits. In the end, the lending agency will always take into account your solvency, while making sure to regularize your situation (by reducing your debt ratio to the usual maximum rate of 33%).
What could be different from credit procedures is that your new creditor will have to act more flexibly given your difficult situation. His approach will have to be more personalized than in the context of a simple credit.
How to make a credit redemption easy to get?
To increase your chances of achieving an accepted credit redemption, here are some tips:
- Of course, not all financial institutions buy back credits, but your usual banker should know specialized partners in this area. It may be other credit institutions (subsidiaries of the usual banking groups or independent companies), or brokers and other banking intermediaries (intermediary in banking operation (BIO) or more precisely, intermediate in banking operation and Payment Services (IOBSP)]. If your bank can offer you a contact, take advantage of his experience.
- You may consider seeking advice from a credit builder : he can work via the net or as a professional within a physical agency. The trade of broker of redemption of credits is subjected to a well defined legislation and a professional should have an approval of the Organization for the unique register of intermediaries in Insurance, Bank and Finance (ORIAS). To make sure that this is a professional, remember to check its status which should appear on all its documents or its legal notice if you are on its website. Indeed, there are many “phishing” sites, where your request will not be handled directly by a specialist.
Your broker buying back credits will not only have to offer you a tempting interest rate. With seriousness and transparency, he will have to defend your interests to limit your debt. A good broker should be able to provide you with an analysis as an expert, but also anticipate your questions and concerns. It will have to have a large network, with a wide choice of stakeholders credit companies. Thus, he should be informed of market movements in which he intervenes and know the mode of operation of the credit institutions with which he is in contact. Thus, he will advise you and play the competition, to guide you to the credit society best able to respond to your difficult situation. A credit broker also knows the paperwork you will need. It will save you time and energy in canvassing with different banking institutions. The use of a broker can be beneficial.
If the contacts of your bank do not satisfy you, you can also find an organization specialized in the redemption of credits by passing directly on the site of ORIAS.
- Using a broker to redeem credits generates a cost, knowing that brokerage fees can go up to 5% of the amount of the new credit. It may be that you decide to manage more or less alone. In this case, you can use a credit redemption simulator . A good simulator will allow you to collect the main information that will help you get a good idea about the purchase of credits. In particular, you will be informed of the various costs relating to the total capital you have to repay (interest rate, application fees, guarantee fees, etc.).
To proceed with the simulation, list your credits, their amounts, the monthly payments you pay, the expected repayment periods, the subscription dates. Then, go to an online simulation file. Look for an easy to fill, but secure SSL protocol. Then pay special attention to the interest rates offered. Analyze if this is the true rate that will be applied or if it is a simple “call rate”. Find out if the rate is fixed or variable (a variable rate takes into account a possible fall in interest rates, but it involves more risk because the fluctuation of the interest rate can also increase, which will have the consequence to increase your monthly payments). You can then clear the credit company whose interest rate would be the most advantageous in the face of your difficult situation.
The final word
If you think that a redemption of credits is adapted to your difficult situation, resort to it as soon as possible, before the over-indebtedness points the tip of its nose.
In parallel, your decision must be thoughtful and not taken on a whim. A repurchase of credits should be considered only in case of emergency. Indeed, at first, the redemption of credits will surely allow you to blow, but in the long run, the transaction can be heavy. Because in general, if the monthly payments are reduced, the person discharges his debts over a longer period. So, the facility should not mislead you.
Finally, when you are about to subscribe for your buy back of credits, check the terms of your new contract. Consider the possibility of early repayment. Be careful, if you are in a difficult situation, some loan companies can offer to help you out with a cash loan. This is a certain amount that is supposed to help you meet your needs right away. However, since it will be included in the new credit, it will be another debt. Better to think twice and accept only in case of real need.