For individuals who can no longer manage their loans, buying back credit is a financial operation which consists of grouping all of your outstanding debts into a single credit. An explanation over at fourchetteagauche.com
Made with a credit institution responsible for buying back all your credits, this new loan makes it easier for you to pay your monthly payments because they are now combined into one, allowing you to reduce your charges with a reduced maturity.
The advantages of buying back credit
The main asset of the credit buy-back is easier management of your financial commitments. Indeed, you will no longer have to make several payments to different financial institutions every month, because you are now speaking to a single bank for a single monthly payment, the amount of which has been reduced to better be supported by your budget.
What’s more, credit consolidation gives you advantageous interest rates estimated between 6 to 8%, which is quite interesting since interest can quickly reach 20% for revolving loans. By choosing to buy back credit, you will be able to save again, by taking advantage of up to 60% of your old monthly repayments thanks to a longer repayment period.
Credit repurchase: the steps to follow
To make a credit repurchase, start by informing yourself with your bank or on online banking sites concerning the possibilities of grouping of your current credits.
To speed up the process and obtain a favorable response more quickly, already prepare a complete file with the necessary and essential supporting documents such as each amount of your outstanding loans, the detailed characteristics of each consumer credit contract or home loan, the amounts your monthly repayment, your bank statements, your amortization tables, documents confirming that you have paid your monthly payments and your last three pay slips to serve as collateral for banking establishments which mainly rely on your repayment capacity.
As soon as you have addressed your request for credit consolidation with the supporting documents requested, the financial institution of your choice will proceed to a study of your case, by verifying in detail your current credits. Thus, if you have never been the subject of bank disputes and that you have always paid regularly your monthly repayment, you will be considered as a good customer and the solution of repurchase of credit will be granted to you.