4 Reasons Why You Should Start Paying Off Your Debt Now

Being in debt is not very fun. And it can also be a big financial disaster, depending on your debt and the type of debt you have. The good news is that there are proven methods to pay off the debt – but the bad news is that you need to be serious about debt repayment if you really want to get out of debt.

If you are not currently working on a debt repayment plan, here are four good reasons why you should definitely start repaying your debt now.

1. You are wasting money on interest

Debt is almost never free – you have to pay interest when you borrow. These interest charges can really add up, especially if you only pay the minimum on credit card payments. In fact, if you borrowed $ 5,000 on a card at a 15% interest rate and paid a minimum payment equal to the lesser of 2% of your balance or $ 10, you would end up paying $ 7,789.37. ‘interests. And you would pay this balance over more than three decades!

Although this is an extreme example, interest is almost always expensive on consumer debt. Even a $ 30,000 to 4% mortgage loan paid back over 60 months would cost you more than $ 3,000 in interest. That’s more than 10% of the cost of the car, if you financed the full purchase price. The more debt you carry, the higher the interest rate, the more you will pay over time.

If you do not want every purchase to cost more, try to pay off your debt as soon as possible. After all, do you have better things to do with thousands of dollars than sending money to banks or credit card companies?

2. Your debt makes money management more difficult

Most debts are paid on a monthly basis. When you have credit card bills, auto loans, student loans, personal loans and other debts to pay, all of these monthly payments are a significant percentage of your salary. This leaves you less money to do other things – like buying essentials, saving for college or retirement, or working toward financial goals such as buying a home.

If you could repay your creditors, you would have all that money you sent to pay your debts. For example, a $ 30,000 auto loan at a 4% interest rate over 60 months would cost you about $ 552 a month. If you invested $ 552 a month for 30 years instead of sending it to a car loan lender, you would end up with more than $ 670,000 if you realized a return on investment of 7%. This is a nice retirement pledge that you could build if you were not stuck sending this money to a lender every month.

3. Your debt is dragging your credit score

When your credit score is determined, your credit utilization rate is taken into account. This is the amount of credit you used against the credit you have. A person with a balance of $ 1,000 and a credit limit of $ 10,000 uses 10% of the available credit. Its credit utilization rate is therefore 10%.

A credit utilization rate greater than 30% is a red flag because it indicates that you may be in debt and can not manage your payments effectively. On the other hand, a lower utilization rate can significantly increase your score. By working on the repayment of credit card debt, you can reduce your credit usage rate and your credit score should increase as a result of your efforts.

Your history of one-time payments you make when working on debt repayments should also help you get a better credit score. And, since employers can check your credit with car insurers and other companies with whom you do business, it is very important to have a good credit rating.

4. Your debt could make borrowing more difficult for important things

Although you want to borrow as little as you can to avoid having to pay interest, you may need to borrow – and that even has financial meaning.

If you have to borrow to grow a business or pay for a college, this investment in yourself could pay off by dramatically increasing your income. And most people need to borrow to buy a house, which can be a good thing, because homeowners usually have a higher net worth than tenants.

Unfortunately, if you have a lot of debt, it will be more difficult to get loans approved that will help you achieve laudable goals. Indeed, most lenders examine your debt ratio, which is calculated on the basis of your debt to your income. An excessively high debt-to-income ratio may result in a loan denial or a higher interest rate if you are allowed to borrow.

By paying off your debt, you can reduce your debt ratio so that lenders consider you to be a less risky borrower. This would allow you to get loans in good conditions when you really need it.

Start working on your debt repayment plan today

As you can see, working on debt repayment is very important – and it’s not something that can wait. So, prepare a plan today to put more money into paying down the debt; Determine which debts you want to pay first; and start working to become debt free. When you reach your goal, you will be very happy to have made the effort, especially when you start doing great things with all the money you save in interest.

Introduction to New Mini-Credits Online

It is a fact that the new online mini-credits represent an effort on the part of financial institutions to diversify their products and bring them closer to all kinds of people, and can be used for any need.

The usual loans, with their cumbersome procedures, waiting queues and demanding requirements to achieve their concession, have begun to be relegated by the wide variety of financial products that you can access from Internet portals.

The “new online mini-credits” represent an opportunity and a necessary response if you only need a small injection of money immediately. It is not about giving you tens of thousands of euros, but that, at best, you can access an advance of just over one thousand euros, a small amount that you can return with economic and time solvency. In addition, the fact of processing them through the Internet offers you a series of unique benefits with respect to other types of credits.

The main advantages of new online mini-credits

The advantages of applying for a “new mini-credit online” are, by themselves, sufficiently suggestive to become the perfect loan type for any unforeseen situation, such as the execution of a necessary reform, or the need to cover small holidays.

  • The new online mini-credits are requested in a simple way. By simply accessing the website of the entity that offers you the loan, you can fill out the application form and detail the amount you need and how long you would like to return it. By adding your personal data, the entity’s system will evaluate whether or not it can grant you the credit, obtaining the answer in a couple of minutes.
  • Its management is done very quickly. If the entity approves your request, it will not be long before you have the money available in your account. If your application is approved properly, you may receive it in less than fifteen minutes. The maximum time an entity can take is about 24 hours, which is why this is the best option to have immediate liquidity.
  • They are products of great versatility. You do not need to justify with documents, such as payroll or any other paperwork, what your income is. Nor are you required to explain how you will use the money. You will only need to fill out the small application form, without fear of rejection due to the lack of a document.
  • They are products of great flexibility. A great contrast with traditional bank loans is the possibility of altering the repayment terms. If you have an unexpected event, most entities will try to make things a little easier for you.

How new mini-credits are requested online

How new mini-credits are requested online

Without moving from your home or from anywhere, using a computer or mobile phone with Internet connection, you can access the application process for your new loan:

  • You must access the web portal of the entity that inspires you confidence, and start filling in the application form. An activity to which you must reserve about five minutes, at most.
  • Normally, you will have to approve an agreement of conditions of use of your data, so that the entity can check through automatic systems if it can lend you the money.
  • The approval, depending on the entity, can be practically immediate or be delayed, legally, until 48 hours.
  • Once your loan is approved, the money will reach your specified account within a maximum period of 24 hours, depending on how the entity works.

Do not hesitate, if you need liquidity quickly and easily, go to Astro Finance for advice on the best new mini-credits online.

What profiles are sought for home loans?

To take advantage of the most interesting rates and convince banking entities, do not hesitate to play with his profile that may be ideal. Highlighting the qualities of a borrower is a real bargaining power, given the potential for profitability that the desired profile can become for a bank. An assessment at http://winwinlose.net/forex-trading-traps-how-you-can-avoid-these-four-top-frauds-in-currency-trading/

Profile, a bargaining argument

With a view to controlling risk, banks have tightened borrowing conditions for the acquisition of real estate. The guarantees requested are numerous and binding depending on the situation of each. This is why banks are looking for ideal profiles to maximize profitability during the sustainability of the relationship through the sale of various intermediation products. These profiles are real pools for the GNP (corresponds to the difference between the products and the operating expenses of a bank) of the banking establishments. Credit applicants who fit into this typology of clients have more than an interest in highlighting their “ideal” borrower assets to negotiate the mortgage loan for their benefit.

What is the ideal profile?

The borrower so sought after by the banks is primarily a young worker who is in the 25-35 age bracket. He is in a relationship ideally with someone whose situation is more or less similar. The professional career is full of potential and the incomes are relatively comfortable. On the health side, being a non-smoker is a not insignificant vis-à-vis the insurance-borrower, just like the practice of a physical activity. The insurance is however extremely friable in case of extreme sport practice.

In addition to a good monthly financial income, the fact of owning assets, whether real estate or furniture or both, is an essential factor that can help to put pressure on the proposed rates and to relax certain conditions. The contribution via a valued capital on savings products is essential in the negotiation. Maximizing it provides concrete guarantees to the lender while lowering the total capital needed to borrow.

How to enjoy certain benefits?

Although it is difficult to provide such a profile, some criteria may be beneficial for a loan application. And we must also seize certain opportunities as ephemeral offers on rates to save a few thousand euros on the total amount. Commercial deals are to be seized, but do not hesitate to inquire about the possible benefits granted by the State. The PTZ is for example a credit that allows to finance part of the property at zero rate, subject to eligibility.

Finally, an effective search for a credit insurance is also a great way to save several thousand euros. With an ideal profile and good health, it is quite possible to have a monthly contribution at a competitive price by opting for loan insurance delegation.



Renegotiating real estate loans or loan consolidation: Make the right choice!

With the fall in mortgage rates, we talk a lot about the opportunity to renegotiate its mortgage, provided that there is usually a differential of 1 to 2 points depending on the case. There is less talk of loan consolidation especially when you have another loan beside the mortgage. Without wanting to oppose these two options, here are some ways to help you make the right choice.

Credit rates ranged from 3.40% to 4.62% five years ago. They fell sharply from 2011 to November 2016 (with a lower rate at 1.40% at 20 years). They then recovered to July 2017 before starting a slight decline to stabilize in November and December 2017 (around 1.65% to 1.80% at 20 years). This steady decline is the result of the decision of the EurCen Bank (EB) to sharply lower the Euribor rate. This rate corresponds to the rate at which the banks lend money to each other in the short term and to which are paid the deposits in the funds of the EurCen Bank. A further rate cut is not possible in 2018 because banks are at the limit of their break-even point. Similarly, a sharp rise in rates is also not possible in 2018 because banks would be caught between soft loans at low rates and much more expensive purchased money. Is it appropriate for today to renegotiate its mortgage or to consolidate its credits?

The benefits of renegotiating real estate loans

With the steady decline in mortgage rates, the renegotiation of the loan seems to have become very attractive. This is the opportunity to get a better rate and thus achieve substantial savings to reduce either the amount of your monthly payment or the duration of your credit. However, this solution is not always advantageous from a financial point of view. In the case of a conventional fixed rate loan, each maturity includes a portion of the subscribed capital and a portion of the interest, the distribution of which varies during the loan. In the beginning, interest represents the largest share, and over time each monthly payment is almost exclusively capital. As a result, renegotiating one’s real estate loan is only worthwhile when the share of interest in the amount of each monthly payment is still high, usually during the first third of the life of the loan. Refer to the details of the repayment schedule for interest and principal. Overall, the interest rate differential must be large enough (ideally, 1 point) to cover transaction costs, which can go up to 4.5% of the outstanding capital. For example, for recent loans of more than 300,000 euros or subscribed for more than 20 years, a difference of 0.70 points can do the trick. Simulations are needed by getting closer to his credit institution.

The benefits of pooling credits

The lowering of interest rates also favors the regrouping of credits provided that there is another credit beside the mortgage. On the one hand, the management of your budget is simplified because you have a single monthly payment, a single rate and a single dedicated financial institution. On the other hand, you benefit from adapted financing, which allows you to adjust the amount of your monthly payment or the duration of your credit according to your situation. But it usually involves a longer period and causes a number of costs:

  • the prepayment penalties, generally equal to 3% of the capital, without being able to exceed 6 months of interest on the repaid capital.
  • new banking fees
  • bank guarantee fees
  • the costs of a permanent and definitive disability insurance.

Hence the obligation to measure the overall cost of loan consolidation through simulations that will allow you to look at the consequences of the consolidation of credits on the outstanding capital, the loan payment and the overall cost of the initial mortgage.. There is a moment from which, the remaining capital of the new credit will be less than the outstanding capital of the mortgage. This moment called “tipping point” is the time it takes to amortize the pool of credits. Before that date, you will lose money by selling your property. If you plan to keep your property for many years, consolidation will not be a problem. On the other hand, if it is a property that you want to resell in the short or medium term, or if you think that your family or professional situation will evolve in the short or medium term, be careful, calculate your tipping point even if the difference between the two interest rates, that is, between the initial credit interest rate and the interest rate proposed for redemption, is greater than 1%.

Other benefits of pooling credits

Consolidation of credits (mortgage and other credit) also has other advantages, while preserving your budget, for example:

1- to be able to realize other projects including real estate (the acquisition of a new good) by lowering your debt ratio,
2- to be able to request additional cash to carry out development work for example,
3- to have a single monthly payment and a single rate.

By performing simulations, you can calculate your leeway to finance a new project: the financing of your children’s studies, the completion of work, the change of car… The credit institution must give you an information document allowing you to compare the financial characteristics of outstanding credits with the financial characteristics of the credit pool.

Loan consolidation is a global solution that allows you to bring new projects to life without waiting for a full refund of your outstanding credits. It’s a way to boost your finances!

Loan application What to consider?

This guide covers various things about how to apply for a loan. We deal with loan application questions like: how much can you get a loan, how does a credit decision evaluation work, and what if your bank doesn’t approve a loan?

Loan, How Much Can You Get?

The question of how much you can get a loan comes up in many ways when it comes to applying for a loan. Can you get enough loan to buy the car or vacation that you dream of?

When looking at a loan, you should focus on how much you need the loan – and what you plan to use it for. Instead, maximizing your loan amount is never a good goal.

The amount of the loan depends on the applicant

How much you can get for a loan depends on many things. Applying for the largest loan is hardly worth the pleasure of applying for a large loan. Instead, you should think carefully about how much you need a loan.

Applying for a loan and the amount of the loan are affected by, among other things, the applicant’s income and payment history. The basic requirements for getting a loan are usually regular income (such as a job or retirement income) and pure credit history.

If the applicant has a default payment, the loan is usually not available. Only a very few lenders differ from this. However, one exception confirms the rule, but Svea also offers SveaPrivat loan to the creditless. However, they also have a tight screen: Applicants must have no new default payment entries in the last year. If the applicant has older credit malfunctions, they must have been completed, ie they must have a ref entry.

There are rules of thumb for how big loans a customer can get. For example, Handelsbanken often assumes that a consumer credit can be obtained three times its monthly income.

So, for example, if your monthly gross income (that is, pre-tax income) is, for example, EUR 2 789, you can get a consumer loan of EUR 8 367 from Handelsbanken.

Instant Leverages and Loan Limits

Following the tightening of the Quick Leverage Act, many companies have shifted to offering larger loans. The Quick Leverage Act and its interest rate cap only apply to loans of less than $ 2,000. The interest rate cap is based on the principle that the effective annual interest rate of the loan may not exceed 50%. However, the reference rate is not taken into account by the interest rate cap, for example, the annual interest rate with the reference rate may be 50.2%, for example.

In practice, however, many companies offer so-called “flex” or “limit” loans. They always get a “loan limit” of more than € 2,000, usually € 2,100, when applying for a loan. This is despite the fact that the customer would apply for a loan of, say, EUR 300. When the loan is more than EUR 2,000, it is not subject to the interest rate cap on instant loans. Thus, the annual percentage rate of charge may be significantly higher than 50% and the reference rate.

There is no obligation to increase the entire loan limit, but the customer can only increase the amount he / she intended, for example, EUR 300. However, the customer may be tempted to raise the whole of just over € 2,000, since it is still possible. However, in this case, keep your head cold and remember that you should not borrow more than is necessary.

Focus on total costs

Whatever the loan amount, in the end, always pay attention to the total cost of the loan. One good metric should not be confused, such as low monthly interest rates or low opening costs, but should focus on the whole. However, in the end, you will have to pay the full cost, so it is a good idea to get there first.

Total cost refers to all costs that come with a loan. Another measure used is the effective annual interest rate. The annual percentage rate of charge is expressed as a percentage and includes:

  • loan processing costs
  • the advertising costs to be paid for the loan
  • loan opening and service fees

The example helps you to understand why outlining total costs is important, rather than focusing solely on interest, for example. Even a large loan does not necessarily make you happy if you find it expensive in the long run. The loans are not the same, so a comparison before making a loan decision is a good idea.

How does the credit decision estimate work?

When applying for a loan, the borrower often has to art between bids and reality: Can I just get the loan on the terms that the lender hardly places in their ads? Our loan comparison now uses an estimate of the credit decision. In practice, this means that the customer will receive an individual assessment of the likelihood of approval of the loan application based on the information they fill out.

What are the benefits of an individual assessment?

The benefit of an individual assessment is precisely that it gives an indication of the terms and conditions on which a particular person could obtain this particular loan. This is especially important because the loans are not carved from a tree, so there are also differences in their terms.

Differences in terms and conditions may report, for example, to age limits or income. For example, some loan providers do not offer loans to people under 25. In addition, some loan providers use client-specific pricing, which means, for example, that the interest rate on a loan depends on how reliable the customer is. Reliability can be affected by, for example, your Payment History and earnings. In practice, this is about risk analysis.

What is the credit decision based on?

The credit decision estimate we have is based on information provided by credit providers. Credit judgment estimates are based on probability and risk. We ask, among other things, the amount and time of the loan, age, income, and the type of employment and residence.

It is good for the consumer to remember that the credit rating system is an overall assessment designed to facilitate the consumer’s choice and to provide the most accurate information possible. However, this is not a final judgment. Current loan applications ask for more information that will influence your credit decision.

Our questions take into account the easiest information to evaluate (such as income) and the most basic credit rating information available to lenders.


Credit without processing fee – so get it

As a consumer, one can fall back on the financial market on a wide range of banks and credit institutions. The different providers often offer different loan products, which often correspond to the same type of loan, but can differentiate each other in terms of interest, term, loan amount etc. Loans often differentiate themselves by interest. Basically, you should consider two different forms of interest on loans. On the one hand, loans are provided with the so-called debit interest. The borrowing rate is called adjusted interest. In addition to the debit interest, there is still the effective interest rate. The effective interest includes not only the debit interest but also all other costs, which can be recorded as a percentage. The effective interest rate includes, for example, processing fees, provision fees, etc.

Credit with no processing fee – benefits

To provide the customer with the highest level of transparency, many banks today offer loans without a processing fee. This is mainly due to the fact that many banks have advertised in the past with a low borrowing rate in order to attract as many customers as possible. Since this is forbidden after a resolution today, various banks and credit institutions renounce today on a processing fee. By waiving the processing fees, the comparability of different loan offers automatically increases. The advantage for the consumer is enormous. Although loans are now being offered more and more frequently without a processing fee, this in turn does not mean that the loan is necessarily lower interest rate. Again, caution is needed.

The no-processing fee is not significantly different from other forms of credit. Here too, as a consumer, one can individually determine and adapt certain features of the credit product. So you can often choose from a generous line of credit any loan amount. Also, the term and repayment can often be designed according to their own requirements.

Loans without processing fee – make a comparison

Loans without processing fee - make a comparison

Before opting for a loan with no processing fee, you should make use of the possibility of credit comparison as a consumer. The comparison for a loan with no processing fee is offered on the Internet by financial portals. The finance portals in the network often provide credit calculator for the comparison. Credit calculators enable the consumer to compare with individual claims. This flexible information can be made, the comparison is very accurate and accurate. Credit comparisons are free, anonymous and objective. For this reason, a multiple comparison is worthwhile. By means of the credit comparison, one can find out the cheapest offer, with the lowest interest rates. Thus, can save a lot of money with little effort.

  • Start your loan request now (there is no contract yet).
  • After checking your request, the money is already in your account after 4 days.
  • You just have to accept our offer. If not, then not. No hook, no cost.

Repurchase of credits 100,000 euros: what solutions?

If many households opt for a credit buyback operation, it facilitates the management of personal finances. When the total amount of loans to be bought back reaches 100000 euros, loan consolidation is quite possible. On the other hand it is important to take into account the fact that it is preferable to apply to an organization specialized in credit buyback, because they are professionals in this type of financial arrangement. The primary ambition of a credit buyback operation is to be able to have a perfect mastery of its debts. With a single global debt that includes all repayments, repayment of € 100,000 credits makes life easier.

The operation of the purchase of credits 100000 euros

The advantage of the redemption of credits is that it allows you to manage only one financial institution. All credits, but also all existing debts, are thus collected in a new single debt. This is a credit subscribed with new conditions in a new loan agreement. The monthly payment will also be unique, and for an amount of 100000 euros borrowed, the borrower will have the opportunity to choose a decrease in the monthly payment for a longer repayment time, or on the contrary an increase in the monthly repayment amount for a duration shorter. The purchase of credit provides a more serene credit management and can also reduce the costs associated with it.

For an amount of 100,000 euros and to obtain financing at the best rate and especially adapted to the situation of each borrower, it is essential to call on experts. With a strong experience in this type of transaction, they will be able (whether brokers or intermediaries in banking operations and payment services) to set up the fairest monthly payment. The goal is primarily to reduce the amount sufficiently, so that the rest to live can be increased. This solution necessarily leads to an increase in the repayment term of the credit, which will increase its total cost.

To negotiate a personalized financing of 100000 euros with banks and credit organizations, you need to have experience. Because these financial institutions will propose the repurchase of all the debts, by selling all the remaining capital due. These can be composed of consumer loans (credits allocated car, motorcycle, work, personal loans, revolving credits, etc.) but also various debts (late payments of bills, rents, family debts, tax debts, tax arrears, housing tax, etc.). On the other hand, home loans can also be included in the purchase of credits of 100,000 euros, whether it is a loan for the purchase of real estate, for a construction or extension, or Works.

The interest rate on the redemption of credits is always fixed and unique and will not change during the life of the new credit subscribed. The contract provides for the signing of all credit conditions, fees, the amount of the single monthly payment and the terms of repayment. It is a matter of making a financial package tailored to the means of the borrower. When the income is not too important it is better to choose a suitable monthly payment, and vice versa if they allow it, so it is better to choose a slightly higher monthly payment to limit the repayment period.

The conditions to make a redemption of credits of 100000 euros

When a borrower wants to buy a loan of 100,000 euros, he must first know his repayment capacity and its level of debt. This ability to repay a credit corresponds to the total revenue that can be allocated to the payment of monthly installments. In general, it will not exceed a debt ratio of 33% of monthly income. Beyond this, financial organizations refuse to grant credit in the majority of cases. The only exception is the case of a household with a comfortable income, to which a debt ratio of up to 42% can be granted under certain conditions.

Thus, the redemption of € 100,000 credits is subject to strict conditions of eligibility. The bank accounts of the future borrower will be scrutinized, this means that the accounts must be kept impeccable, with a payment without incident of all the previous debts. A good management of his finances is absolutely necessary to see his file accepted, because it proves above all the seriousness of the borrower. Having a savings capacity is always an asset.

It is possible to make a redemption of credits of 100000 euros with or without guarantee. With a guarantee, it will be a mortgage credit, that is to say with mortgage of a property. When there is no mortgage, the amount of the redemption of credits is capped. Tenants will only be able to borrow up to 100,000 euros, while homeowners will have the option of going up to 200,000 euros. The latter can even borrow more than this sum, but on the condition of subscribing to a loan with a mortgage. The repayment period of a redemption of credits of 100,000 euros can not exceed 12 years.

In order to properly prepare an application for the redemption of credits, all the documents to be provided must be gathered, namely all the loans and mortgages with the remaining capital due and the depreciation tables. It will also prepare the last three bank statements and better wait until they are flawless before filing an application. The request can be made online but also by phone. Advisers are listening to applicants throughout the day on many websites.

Start with an online simulation

To evaluate the possibility of a € 100,000 buy-back operation, it is necessary to systematically use an online simulation tool. This allows to know in a very short time the feasibility of the project in relation to the personal and professional situation. The simulator also gives the possibility of receiving at the same time several offers from which the borrower can make his choice, according to his means and the nature of his project. These tools also display an estimate of the future monthly payment, which makes it possible to get an idea, even approximate from the beginning.

Once this first step is completed and the borrower has chosen the offer that suits him best, he can build his file and send all the required supporting documents. An analyst, a true expert with a great deal of experience, will then be able to establish a real tailor-made financing file. It is at this point that the borrower has the opportunity to request the grant of additional cash in the form of cash. This is granted under certain conditions, and may be used to finance a new project or purchase.

The personalized loan offer of 100,000 euros is sent as soon as the file is validated. After a period of reflection of 10 days the borrower can sign it. He will always have 14 days of retraction period granted by law, even if the payment of funds was made before that time. It will have to repay the amount collected plus interest for the period.

How to make a bank grant us a difficult loan.

When we are dealing with difficult credit

We talk about difficult credit when there are difficulties in obtaining it. There may be different reasons for this. Most often, however, we encounter the concept of difficult credit when we repay earlier obligations late, we have a difficult financial situation, we have many other obligations or our credit history leaves much to be desired and does not make us good partners for the bank. These are the most common reasons why we are talking about difficult credit. However, this does not mean that we will not receive a bank loan, but only our path will not be easy. How to make a bank grant us a difficult loan and what to avoid?

What not to do when applying for a difficult loan

Difficult credit is a very specific creation. In this situation, it is not worth acting too quickly and too quickly. We have to convince the bank that we are not only a suitable but also a solvent customer. Before this happens, however, we must watch out for certain things. Namely, it is a very big mistake to send many loan applications to various branches, hoping that maybe it will go there. This is the worst thing you can do when applying for a difficult loan. Why? The answer is simple. Already three applications for a loan, to which the bank has refused, can determine that we will not receive a loan at any other outlet. In this simple way, we can lose your chances of a difficult loan.

How to make a bank grant us a difficult loan

First of all, for a bank to grant us a difficult loan, we should not act alone. We have a much better chance of receiving a difficult loan with the help of a specialist, i.e. a professional credit advisor. He is a person who has experience in negotiations with representatives in the bank. Based on the collected information about our financial situation, it is able to develop an action plan and choose those banks in which we have the chance to receive a difficult loan. What’s more, a professional credit counselor has much more opportunities than we do alone. The broker has the opportunity to negotiate credit terms with the decision maker in the bank. Thanks to this, he is applying for an individual product for us, not available to everyone in the bank’s outlet. A professional credit broker has the necessary knowledge about finance and banking products. He knows what to expect from a particular bank and what products can be offered to him by a particular institution.

How to make a bank grant us a difficult loan? There is one answer. Ask a professional credit broker for help, and if you have problems paying back your loans and need to consolidate your loans.

How long to get a buy back of credits?

When finances are cut off by too much borrowing, it is possible to turn to a redemption of credits . A very effective financial operation to reduce the amount of monthly payments and extend the repayment period while having to deal with a single interlocutor. On the other hand, if once this assembly is revealed to be optimal and effective, it is nonetheless a process that can not be improvised and can not be done at the last moment. To ensure the success of a loan consolidation, it is better to be well informed about the various deadlines necessary for its effective implementation.

1  The time of the search for the offer: a not insignificant step

The time of the search for the offer: a not insignificant step

First and foremost, it is important to take into account the time it takes to find the best offer for your needs. To carry it out the borrower has two options: to offer the services of a broker or to perform several simulations and quotes online.

In the first case, seeking advice from a broker can save a lot of time. Indeed, this professional, as a true expert in the financial sector, will accompany his client throughout his research. He is also the most effective intermediary to have a complete overview of the offers available on the market. It has all the brochures and tariffs to avoid the customer having to go fishing for information. A broker is therefore an ideal intermediary when one wants to subscribe to a purchase of credits without wasting time. But it will nevertheless pay a certain amount of money to afford the services of this professional.

Another, more laborious and therefore longer option is to conduct a careful review of the contract panel. For this, there are now multiple platforms on the Internet. These offer in a few clicks to perform an online simulation. All you have to do is enter the essential information about the future contract, such as the income of the borrower and his household, the number of loans involved in the operation, the number of monthly payments remaining or the duration of the credits in progress. It is then possible to directly receive a quote by email or to be called back by an operator.

This approach is certainly longer but it allows for a complete search and to play competition between market players, ie institutions specializing in credit and banks.

Whichever option you choose, some essential criteria must be taken into account in order to find the best repurchase agreement:

  • the proposed rate
  • the amount of monthly payments
  • the proposed repayment term
  • the remaining capital
  • application fee
  • prepayment fees

Criteria that will vary depending on the different institutions and the type of contract but will depend mainly on the file and the profile of the borrower.

A solid file rhymes with rapid response

To ensure a positive response but especially fast when applying for loan consolidation , it is essential to provide a complete file. The round-trips of emails, calls or mail to provide certain documents are the main reasons for an increase in the deadlines for completion of this assembly. Thus, the more complete a file is transmitted, the more the study of it and the response of the creditor will be fast. To save time, it will therefore be necessary to submit documents such as:

  • the copy of the identity document
  • the last three paysheets of the borrower
  • bank statements
  • proof of a pension
  • the last tax notice
  • rent receipts or title deeds
  • statements of booklets or other savings products
  • all documents concerning credits in progress

All these different elements will be taken into account at the time of the study of the demand and will especially allow to determine the rate of indebtedness of the borrower.

3  The deadline for accepting an offer.

After sending a complete file, the lender will rigorously study each document in the file. For a favorable response, it will be necessary for the internal commitment committee at the institution to vote and consult. This is to assess the risks and benefits of accepting the file.

In some cases, the creditor may request additional supporting documentation before making a decision. Consequence: the profile analysis time and therefore the formulation of the offer can be extended.

The response time varies from one bank or financial institution to another but also depends on the nature of the contract and the type of redemption structure. Indeed, it will usually take between one week and ten days before receiving a contract offer when it comes to consolidate only consumer credit (personal loan, car loan, work).

On the other hand, when the operation includes a loan of a property, the study of the file can be a little longer because sometimes it may be necessary to make an estimate of the property in question in the presence of a notary, this which greatly lengthens the procedure. For a repurchase of real estate credit it will thus be necessary to count two to three weeks before obtaining an answer.

With respect to the purchase of mortgages , the overall approach is much longer as some documents will have to be drafted with the help of a notary. The operation is also heavier and requires more checks before the release of funds. This will take place after a period of four weeks on average.

4  Unlocking funds: the last step

After receipt of the offer and signature of the contract, the borrower has a withdrawal period of fourteen days for consumption credits and ten days for mortgages. This is an obligation set out in the Consumer Code which governs this operation. This period may, however, be reduced at the request of the borrower.

After this period, the release of funds will intervene more or less quickly depending on the nature of the credits to be consolidated . When the installation concerns only consumer loans, the sum can be released almost immediately after the signature of the contract. With regard to a mortgage repurchase it will take between 48 hours and 72 hours before the release of funds. A delay that can be extended when the intervention of a notary is necessary.

5  What is the delay between two loan consolidation?

What is the delay between two loan consolidation?

 What is the delay between two loan consolidation?

It is possible to make several redemptions of credits as there is no legal restriction regarding a possible delay. On the other hand, depending on the institutions, some are very reluctant to grant several groupings. To be able to benefit from two credit buy-backs as a result, the client’s profile must be impeccable and his debt ratio must not be too high.

The redemption of credits is an ideal solution when many credits are running. It allows all to reunite by subscribing to a new loan obtained at a favorable rate. Therefore, it is possible to reduce the amount of monthly payments *. As a result, the repayment term will be extended and the total cost increased.


How to get a buy back of low interest credits?


The redemption of credits is a financial transaction that primarily reduces the monthly charge paid for the repayment of outstanding credits. In addition to these, it may also include other debts, which will then all be combined into a new single credit. The borrower will have to repay only one monthly payment that will be lower than the previous ones collected, provided to extend the repayment period. The interest rate is an important element of the redemption of credits because the purpose of setting up a loan consolidation, also called debt restructuring, is precisely to reduce it as much as possible. For this you must first make an online simulation, which will be aware of several offers at the same time.

The elements to be taken into account for a purchase of credits

Before any project of redemption of credits, it is necessary that the household is already asked some fundamental questions and especially studies well its financial situation. For example, what about the debt ratio? Is it reasonable? In the limit of what banks allow? If it is too high and exceeds a certain limit (33% in general, but up to 42% in some cases) the borrower will certainly be refused at the time of filing. Banks are now required to check the creditworthiness of their customers before any credit agreement. The rules for the rest of the household are defined by each financial institution according to their own criteria, but a minimum is always required.

This operation, though sustainable and global to restore order in its finances is not to be taken lightly. When properly structured and negotiated, the redemption of credits is a real solution to put an end to a difficult financial situation. It helps to deal with all kinds of problems such as rent or tax delays, tax debts, outstanding credits, bank overdrafts, etc. Depending on certain criteria, it will be necessary to determine in advance whether the operation is profitable. Parameters like the financial, professional, family situation will be important. Then it will be clear whether the redemption of credits allows:

  • A decrease in the amount of the monthly payment
  • An extension of the repayment period
  • A lower rate
  • An additional cash loan to finance new projects
  • A FICP (Personal Loan Repayment Incident File) file if the borrower owns
  • A debt ratio revised downward

A repurchase of credits the cheapest possible

Before discussing the interest rate, which is certainly an important element in a credit buyback operation, it is important to know the other costs that come to increase its total cost. The borrower insurance, for example, is added to the amount of the monthly loan. In order to lower its cost, it is quite possible to go through a delegation of insurance rather than choosing the one of the bank that will grant the credit. This is a good way to lower the cost of a buyout.

Brokerage fees are another area of ‚Äč‚Äčexpense that can be reduced. In a fully online credit redemption transaction, the fees are substantially reduced or nonexistent. This is because banks and financial institutions pay directly to brokers and intermediaries in banking and payment services.

The other ancillary costs which can impute significantly the cost of a transaction of redemption of credits, are the expenses of file required by the bank. This is to pay the processing of the credit application. They are always negotiable and can also be canceled in some cases. It is up to the borrower to know how to play the competition and not hesitate to negotiate.

Obtaining a low rate

When the credit buy-back operation includes several consumer credits (allocated credits, personal loans, consumer credits resulting from consumer purchases, auto loans, work loans, online credits, revolving credits, etc.), it may be interesting for the borrower to offer a mortgage guarantee. This means that he mortgages a property that will be seized if he could no longer meet his credit terms. The advantage of this option is that it is certain to get a low interest rate. In general, bringing a mortgage lowers the rate.

Interest rates have been falling for several consecutive years already. This means that the offers to buy back credits in their entirety are interesting. The rate in a credit pooling operation is a critical element as it will determine a significant portion of the cost of borrowing. Applying to an intermediary like Astro Finances is certainly a great way to get a lower rate. His knowledge of the market as well as his expertise, his experience in the field and the quality of his partners, give him unparalleled know-how. Specialized in credit buyback operations, he is mandated by one or more financial institutions, which allows him to obtain several simultaneous offers. Each offering a different rate, the borrower will have the choice to select the offer the most advantageous for him and especially the most adapted to its situation.

The process of buying credits online

Any borrower can do a simulation online to get a first glimpse of the amount of his future monthly payment. It will be enough for him to fill a form by informing the necessary elements and a first estimate can be provided to him. The steps will be as follows:

  • Online simulation to get a first result. It can be preceded or completed by a first telephone contact with a consultant to understand the situation and needs of the borrower
  • The agreement in principle that is given within 24 hours after completing the online form and filled in all the information requested. This approach is free and without commitment
  • The constitution of the file with all the necessary documents and proofs. They can be deposited online directly on the site
  • Receipt of the credit offer, which will generally be required after 10 days
  • The signing of the contract and the release of the funds in a variable time according to the withdrawal period

Note that it is the lender who will take care of repaying all creditors. The withdrawal period is extended to 14 days for a consumer credit purchase agreement. The only search for a solution to buy credits can in no case be billed, it means that a payment of any kind whatsoever can not be required before obtaining a loan of money.

Good to know: the maximum time for a loan redemption when a borrower is a tenant is 12 years. It is extended to 15 years for homeowner borrowers. The maximum amount granted is 100,000 euros for tenants and 200,000 euros for owners who do not provide a mortgage guarantee. When there is a mortgage on a property, this amount can go up to 400,000 euros. Additional cash in the context of the operation can be obtained without supporting documents.