If you are facing recurring financial difficulties because you have accumulated many credits, it may be time to think about buying back credit. How did it work? What is the right moment to perform this operation? What are the advantages? There are 5 reasons to redeem the credit.
1. Find a balanced budget
Consolidation of credits is an effective solution to reduce your monthly expenses and find a balanced budget. You group your different credits into one and you find a monthly payment that is unique and better adapted to your situation. Your daily management is facilitated.
2. Gather all your credits and even your debts
The buyback can integrate different credits: real estate credit, consumer loans in progress, credit work, auto credit, revolving credit, and even bank overdraft, considered a consumer credit. If you have personal debts or delays in rent or taxes, you can also request a purchase.
3. Negotiate a more interesting interest rate
Consolidation of credits is the ideal time to benefit from a more attractive interest rate, especially in the case of a mortgage purchase or the merger of several revolving loans. Do not hesitate to run a simulated online buyout and to solicit different specialized organizations to obtain a better rate, adapted to your situation, which will lower the total cost of the loan and will thus compensate for the extension of the duration of the loan. refund.
4. Reduce your debt ratio
The more credits you have accumulated, the higher your debt ratio, the more attractive it is to call for credit redemption. Indeed, banking organizations consider the operation really interesting if you are more than 50% of indebtedness. By grouping all of your credits into one, you extend the credit period and thus reduce your debt ratio. This can be useful if you are planning new projects within a few years.
5. Fund a new project
The advantage of a repurchase of credit is that it can fully integrate a new complementary sum to realize a new project. Purchase of car, marriage, works, travel, higher education of children.