Credit buyback: how do you know if it is really advantageous?

Like many borrowers, you are probably wondering about the advisability of using a credit repurchase. This operation indeed seems to be the best way to reduce your costs, especially if you have several monthly payments to honor. However, how do you know if this is really beneficial? Here are some tips to help you see things more clearly.

The online simulation for the repurchase of credit

If you are interested in a credit consolidation, your bank will take care of this preliminary calculation. The simulation indeed makes it possible to bring out a projection of your situation in the event of repurchase of your various loans. Note that you can also use an online simulator for your credit redemption to find out if this option is advantageous in your case. This simulation allows you to have a fairly close idea of ​​the amount of your future monthly payment, your remainder to live but also your interest rate as well as the duration of your repayments.

Thanks to the development of digital technology, it is now very easy to carry out a loan repurchase simulation yourself, using an online simulator. The online simulation procedure is simple, you just have to fill in a certain amount of information in a form. These include in particular:

  • your monthly charges,
  • your current credits,
  • your professional situation,
  • the amount you still have to repay,
  • the amount of your income.

Once all this information has been entered, you just have to run the simulation and you get your results very quickly. If these suit you, you can then contact your banking organization to study the feasibility of your loan consolidation project.

The principle of credit redemption

Also called credit consolidation, credit redemption is a financial operation that consists of merging several credits (car loan, consumer loan, home loan, mortgage loan, etc.) so that only one remains. with lower monthly payments. When drafting your new loan contract, a single interest rate is set for all of your credits. Depending on the case, the credit rate can then be considerably reduced. If the repurchase of credit leads to a reduction in your monthly payment, it can however extend the repayment period. Therefore, carefully check the conditions for redeeming your credits.

The repurchase of credit, however, helps to simplify the borrower’s situation. You only have to pay a single monthly payment to a single organization. This monthly payment is debited from your account at once, which makes it easier to manage your finances. Thanks to the repurchase of credit, your debt ratio decreases, and you can manage your budget with more flexibility. In some cases, pooling loans can also reduce the cost of insurance. It can also help you save money, especially if you can negotiate the total cost of repayment down.

The profitability of a loan repurchase

It may be interesting to use a comparator to compare the takeover offers from different organizations. What you need to analyze first is the rate (APR) and the conditions for repaying your credit. The amount of these monthly payments indeed depends on these 2 elements. The following tips will help you carry out your credit redemption more quickly and calmly.

For a personal loan buyback

You should know that the law does not provide for the payment of any penalty in the event of early repayment or repurchase of credit. As mentioned above, the personal loan buyback allows you above all to reduce your monthly payments, rebalance your budget and lower your interest rate.

For a mortgage repurchase

Loans made in connection with real estate projects are generally large. The credit redemption procedure can therefore take time since it is necessary to renegotiate the costs and possibly change the insurance to reduce the monthly payments. Regarding mortgage loans, it is therefore generally easier to use a brokerage company who will take care of all these steps. The costs of the latter can be around 5% of the amount of your new loan, it is advisable to measure the interest of such a service.

For a revolving credit repurchase

Variable rate credit, revolving credit is very framed by legislation, because it is easy to obtain. When buying revolving credits, it is important to take into account the total cost of repayment. Bringing together several revolving loans is indeed a good way to save money.

Deal with your bank or go through a broker to redeem your credit

When you have carried out your simulation, you can then negotiate directly with the banking organization of your choice. To do this, you must get in touch with an advisor who will accompany you throughout the procedure. Otherwise, it is possible to seek the help of a brokerage firm.. You will find several on the internet. The advantage of this solution is that brokers have the means to group together several client files in order to obtain advantageous credit conditions. These professionals are more apt to negotiate and also benefit from specific offers. Note that their services are also billed according to the content of the file.

Before choosing a broker, make sure they are a reliable person or company, who has the necessary permissions to act on your behalf. Scams abound on the internet, and it would be unfortunate if you were wasting your time and ultimately your money.

In conclusion, applying for a credit redemption can be very advantageous. From a practical point of view first of all by limiting the various monthly payments and from a financial point of view also by reducing the interest rates and associated insurance. The repurchase of credit can be carried out directly with your bank or through a specialized brokerage company. Start without delay a simulation of credit redemption to clean up your cash flow and save money.

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