If you have several loans and you want a payment facility, the credit redemption could be an ideal solution for you.
Yet the advantage or disadvantage of contracting a loan buyout depends on the situation of the borrower.
Credit redemption: what is it?
The purchase of credit or debt consolidation is a financing solution for people in debt who want to reduce their expenses per month.
It allows to group several credits in a single loan with a single monthly payment and at a single rate. The repurchase of credits should concern at least one loan.
Redemption is possible for all types of credits. Currently, it is possible to make a quick and easy credit redemption online.
The benefits of buying home loans
The main objective of the credit redemption is to make you benefit from a facility of payment of your credits in progress. The loan consolidation is a new loan agreement. The property will review your outstanding credits and your repayment capacity.
Then, it offers a rate and fixed monthly payments during the repayment period. The duration and the monthly payment will be adapted to your situation.
Thanks to this credit restructuring, you can standardize the repayment of your loans with a single lender. You will have a decrease in monthly payments but in exchange, the duration of the credit will be extended.
Knowing that this reduction in monthly payments can reach 60% of the total amount of the monthly payments of your loans in progress, the repurchase of credit can thus allow you to make savings.
What are the pitfalls to avoid?
Admittedly, the repurchase of credit makes it possible to lower the monthly payments, however, the main risk of this step is the extension of the duration of repayment.
The credit pooling operation is that the lending company buys all your outstanding credits and proceeds with an early repayment. The redemption thus allows a short-term repayment of credits by the lending institution but in exchange for a long-term repayment.
Apart from the credits to be repaid, you will have to the lending company ancillary costs such as the expenses of file and a cost of prepayment.
Principles of online credit redemption
There are several groups of credits that offer quick and easy credit redemption online. You can first perform a simulation of your credit.
The simulation is most often free and immediate. The operation is simple to perform. You will have an ultra-fast response to your request for financing within 24 to 72 hours as well as a quote.
Once the request is accepted, the relevant credit institution will electronically sign you a contract online.
Brokers will be able to accompany you during all transactions for a quick and easy credit redemption online. They have a good knowledge of the banks and their different benefits, so they will be able to help you.