The purchase of credit talks about it and offers are constantly increasing in the market. Sometimes it is difficult to make a choice or simply to know if one is eligible for a grouping of consumer loans. However, this is a very effective operation for people whose financial situation is difficult due to underwriting too many loans. Before getting started and finding the best organization, performing an online simulation is an optimal tool.
Understand the credit buyback operation
Individuals who have incurred too much debt in the form of consumer credit have the opportunity to turn to the purchase of credits. This consists of the repurchase by its own bank or by another organization specialized in credit, the loans being refunded. Therefore, a new credit agreement is established within which all loans are brought together. Consequences ? At the time of the negotiation of the new loan, the rate obtained is generally revised downwards according to fluctuations in the market and the borrower’s file.
As for the monthly payment, it will now be unique, which has the advantage of simplifying and considerably reducing the amount. In return, the overall repayment term will generally be extended over a longer period. The amount will be better suited to the actual borrowing capacity of the borrower. This is estimated at 33% maximum for most profiles.
This percentage corresponds to the monthly repayment charges for various credits and debts that a household’s budget can support. Beyond this stage, he will be considered as being in a situation of overindebtedness. This is why, by reducing the monthly expenses related to the repayment of a loan and facilitating its management, the consolidation of consumer loans is a real remedy against a difficult financial situation.
Types of loans involved in a consolidation of consumer loans
When considering the purchase of consumer credit, it is possible to include the following loans:
- the personal loan
- revolving credit
- work credit
- car and motorcycle loans
- student loans
- travel credits
- wedding loans, leisure
On the other hand, certain debts such as bank overdrafts, personal or family debts can also be included in a consolidation operation.
In the case of candidates for the redemption of credits, any person (tenant or owner) is eligible for a loan consolidation transaction. Only persons registered in the Banque de France’s personal credit repayment incident file (FICP) are excluded from this leverage, except in certain cases.
Simulation before applying
Using a consumer credit simulator proves to be very effective in getting a clear idea of the various credit buy-back offers on the market and especially on the Internet.
Indeed, this easy-to-use tool allows in a few clicks to get a free quote. For this, the user wanting to know if he is eligible for a purchase of credits can go on the various platforms available. For free, it is sufficient to provide information such as the number and nature of the credits involved in the operation, the capital remaining due, the borrower’s income, his personal and professional situation or his age.
Once all this information is recorded, the simulation only takes a few minutes and the borrower can have an overview of the rate that can be applied, the amount of the overall monthly payment and the possible repayment period.
The simulation of online consumer credit redemption can thus be carried out on several platforms in order to have a complete overview of the offers to which a borrower is eligible and find the one that will allow him to make maximum savings.
Find an organization with an online simulator
Another advantage when performing an online simulation: the possibility of competing between different organizations. Depending on the quotes obtained, the rates applied and the amount of the proposed monthly payment, the borrower can negotiate the best conditions for its loan consolidation. This will require careful consideration of the following when receiving a proposal:
- the fees that vary greatly from one institution to another
- the annual percentage rate of charge (APR) applied to the credit
- the amount of the monthly payment in line with the debt capacity of the borrower
- the repayment period because the goal is to save money, so be careful about the repayment period so that it is not too long
Once an online quote has been obtained, it is then possible to obtain a detailed estimate by email or by mail and to be put in touch directly with a consultant to proceed with the realization of the request.
It is also important to be vigilant when it comes to customer service. The advantage of buying back credits is that you only have to manage your loans with a single contact person. Therefore, it will be necessary to ensure that it is reachable quickly and that the communication can proceed smoothly. For this, it is possible to observe the deadlines for obtaining quotes and processing applications during online simulation to ensure that the best organization is chosen.
Realize the operation by sending the file
At the end of this simple, quick and free procedure and once a borrower has selected the offer and quote best suited to his needs, it will be necessary to concretize the request for purchase of consumer credit by sending a file.
The more complete it is, the faster the processing times of the application and the analysis of the supporting documents will be fast. The file allows the credit institution to have a concrete and complete overview of the situation of its future client. It ensures the solvency of the borrower to avoid all risks related to possible non-repayment of monthly payments.
The following documents must be sent to the organization chosen:
- valid ID
- copies of the housing tax and the property tax
- A bank account statement
- the last three paysheets of the borrower
- the last tax notice
- statements of any savings booklets
- all proof of income (allowances, pensions, grants)
- the last three bank statements
- copy of amortization schedules and loan offers
- any title deeds if the borrower owns
The study of the file will be carried out by specialized analysts of the institution to ensure the solvency of the borrower. At the end of this one, the establishment will transmit its answer within an average delay of ten days. At the reception of this one, the borrower then has also ten days to transmit its answer to the proposal.
The purchase of consumer credit is governed by the Consumer Code. As a result, a cancellation period of fourteen days applies for each contract. The funds will then be released within ten to fourteen days.