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 expense 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.