Rates are still low and do not seem to be showing any signs of an increase. This situation favors the applicants for repurchase of credit to prepare new projects or quite simply to reorganize their finances. But how do you do it?
How to become eligible for credit repurchase?
When a household has to finance a major purchase such as housing or expensive equipment, it generally chooses credit to spread the expenses over time while enjoying the good. In addition, credit makes it possible to benefit from the property more quickly to improve comfort or benefit from better yields (renewal for more economical equipment).
In this case, to take advantage of the credit, certain conditions are mandatory in the eyes of the borrowing organization. A stable income seems mandatory but also an exemption from filing at the bank, as is the presence of overdrafts on the bank statement for the last three months. To do this, the bank requests at least one fixed-term contract in the household to claim a loan.
Consolidate your credits to organize your finances
Low rates provide an opportunity for households to reorganize their finances by consolidating their loans. For example, if a homeowner sees his income decrease due to a change in professional situation he can reduce his monthly payments on his accommodation with a grouping of credits. Although the duration of his repayment is lengthened, he can benefit from a more substantial living time to find a new strategy to increase his income. However, in this example, this financial mechanism seems attractive in the short term, but becomes less advantageous in the long term.
For owners who already own a property with a mortgage, it’s time to take advantage of low rates to reduce the duration of their loan but also to reduce their monthly payments.
Most people have several credits which can make their room for maneuver sometimes more complicated. With the proliferation of LOA for the financing of a car, but also with the payment in several installments on commercial sites, we often forget that this financing is assimilated to credits. With this accumulation of maturities, the debt ratio is high. This is why, the grouping of credits becomes an entirely conceivable option to reschedule its repayments.
Buy back credit to prepare new projects
The reorganization of its finances makes it possible to reduce its debt ratio just as much as to take advantage of certain opportunities to develop new projects. If an aging vehicle needs to be renewed while other credits are being repaid, this may be the time to bring all of the credits together around a single rate.
Homeowners looking to invest in stone are not left out because they can consider buying a second property by combining a loan with the first to ensure a better guarantee. This investment will reimburse the loan either by making a capital gain or via the rents received.