The repurchase of credit suffers from the banking and financial crisis.

The repurchase of credit could become more difficult due to the recent bad economic context, which saw at the same time increasing the distrust towards the banking establishments and the exposure of the most questionable financial practices.

Less favorable loan buy-back conditions

Less favorable loan buy-back conditions

The least we can say is that the news has not been tender with the banks in recent months: revelation of shocking speculative practices, dismantling of the Cream bank, endangering major French banks like Across Lender due to questionable investments (subprimes, or more recently products directly impacted by Greek debt).

Everything therefore seems to encourage lending organizations to adopt a strategic retreat position in a highly fragile economic context which no longer spares them. Unfortunately for borrowers, and more particularly for those considering a credit buyout, this also means a tightening of the conditions for accepting refinancing.

Increased response times for credit redemptions

Increased response times for credit redemptions

First of all, it is likely that the time periods for accepting applications will lengthen, officially for reasons of analysis of the optimal conditions for the repurchase of credits, but more likely to respond to internal instructions aimed at limiting the maximum risk of default, even if it means discouraging less persistent applicants.

In this case, only the use of a broker well established with specialized banks will allow you to pass the course without too many disappointments and have your loan buyback dossier processed within a reasonable time.

New acceptance criteria

New acceptance criteria

In parallel with the extension of the processing times for credit buy-back files, these will also be examined more carefully on the basis of a set of much more restrictive criteria, again with the aim of rejecting as many requests as possible. For example, the buyback of unsecured loans (that is to say from individuals who do not own property in particular) will be much more difficult to obtain.

But being an owner will not be a guarantee of admissibility either, because it will still be necessary for the property to be easily “liquidable” and thus to be quickly sold by the lending bank in the event of default by the borrower. Owners of real estate located in areas where prices are higher than the national average could therefore be penalized: a property more expensive than the average is indeed more difficult to sell in the short term.

A likely rise in interest rates

A likely rise in interest rates

In such a tense and uncertain climate, where insecurity now affects the financial organizations themselves (or even the States, etc.), some establishments could be tempted to compensate for the increased risk taking by significantly increasing the interest rates granted to the files. the most delicate, among which we obviously find the repurchases of credits.

Indeed, the main reasons leading borrowers to request a loan repurchase are related to the difficulties they experience in meeting their maturities. In this case, the lender may doubt the ability of the borrower to repay his debts, and therefore will tend to apply higher interest rates.

French people and payment cards: too many credits in progress?

Payment cards and associated credits have been successful in France. On average, the French have almost 7 cards in their wallet. 97% of our fellow citizens have at least one payment card. All these payment facilities and associated credits contribute to household debt and even if they represent a convenience that should not be overlooked, they are also to be watched.

A payment facility that multiplies credits

A payment facility that multiplies credits

Store payment cards are popular with users with a score of 8.2 / 10 against 7.5 / 10 for loyalty cards only. Used or not, payment facilities are an asset for store card holders.

They are considered a free credit, with the possibility of paying in several installments without interest rate. Generally of 3 months, the duration of these credits can also be longer, resulting in the assimilation of the payment facility to a conventional credit with all the associated rules: pre-contractual information sheet, loan contract offer and 14 day withdrawal.

A level of debt to watch

A level of debt to watch

Some French households end up making excessive use of all these payment facilities which nevertheless represent sums to be reimbursed. These charges can add up to the point of increasing the budget of a household. Indeed, even if the credit is free, these are amounts to be reimbursed each month and good management requires keeping a close eye on all these commitments.

Remember to regularly calculate your debt ratio to find out the share of your budget that goes into loans, to calculate the capital remaining due and to view your amortization table. Nearly 3 out of 4 French people declare that they are forced to arbitrate in the management of their consumption, the food station or the holiday post can be reduced in favor of incompressible expenses.

If your debt level rises to the point where it threatens your financial health, don’t forget to study the possibility of buying back credit or debt restructuring that could allow you to start off from the good foot with lightened monthly loads.

Credit Broker – Your Reputable Credit Brokerage Online!

When looking for a loan, more and more consumers go to seek help from a credit broker. Since there are now an infinite number of providers and loans, loan brokering is a good way to find a suitable loan quickly and easily. Credit brokers are particularly in demand in the online area, because the right loan is usually just a few clicks away.

Brokering loans quickly & easily online

Brokering loans quickly & easily online

In the case of a credit brokerage, the credit broker you trust is provided with all the necessary documents and information, the credit broker takes care of everything else and tries to find the best possible credit for his customer. The loan is granted by a bank, the credit broker is only a middleman and receives a commission for the loan brokerage. The commission can be paid by the lending bank, but also by the consumer himself.

A credit brokerage is mainly used by consumers who have a negative entry at Credit Bureau, because with this they have almost no chance of getting a loan from a Cream bank. In such cases, a credit intermediary can provide loans from abroad that are known as loans without Credit Bureau.

In the area of ​​Credit Bureau-free loans, warnings are often given against dubious credit intermediaries, but it cannot be said in general that there are only dubious credit intermediaries. If you want to take advantage of a loan broker, you should be careful when choosing a loan broker so that you do not get to a black sheep in the industry.

Internet can help you find suitable credit broker

Internet can help you find suitable credit broker

Experiences of other customers, as well as opinions and reports on the Internet can help to find a suitable credit broker. On the Internet you can find a lot of information about credit brokerage and various credit brokers. It therefore makes sense to do some research before deciding on a credit broker, because only those who find a suitable credit broker who acts in the interests of the customer can enjoy a cheap and fair loan.

Through numerous contacts with banks at home and abroad, a reputable credit broker can broker any kind of loan, such as a building loan, a car loan or the said credit despite negative Credit Bureau, which can only be applied for with a credit broker at banks abroad.

Borrow 200 USD mini loan with instant payment to your account!

There are many situations in which you have to overcome a financial bottleneck, for example with a 200 USD mini loan. For example, you can use a loan of over 200 USD to cover unexpected costs, such as repairing your car or dishwasher. Here we tell you how you can take out a 200 USD loan and what you should know about mini loans.

Which providers offer a 200 USD mini loan?

Which providers offer a 200 USD mini loan?

Mini loans over 200 USD are offered by several providers . The best known include Fine bank, Infra Bank and Best Bank. With Best Bank you can take out a 200 USD mini loan with a term of 15, 30, 60 or 90 days. At Infra Bank this loan is only available for a term of 30 days.

Fine bank does not offer a 200 USD mini loan, but only one for 199 USD. The terms are 15, 30 or 60 days. With the 60-day term, the repayment is divided into two installments. For this, the 2-rate option must be selected, which costs an additional 40 USD.

Who can take out a 200 USD loan?

Who can take out a 200 USD loan?

In order to take out a loan of over 200 USD, you must be of legal age and have a Binary Lender account. You should have your main residence in Germany. Infra Bank is an exception here, where it is sufficient if the main residence is in Europe. All providers rule out lending to someone who is over-indebted.

A negative Credit Bureau entry does not mean that you cannot get a small loan. As a rule, you can also have your financial situation assessed directly by the providers. Infra Bank is the only company mentioned here that does not have to provide proof of income. To get a $ 200 loan from Fine bank, you need to have a stable minimum income of $ 700. With Best Bank, an income of 500 USD is sufficient.

What is a 200 USD loan needed for?

What is a 200 USD loan needed for?

A 200 USD loan is often taken out when there are spontaneous additional costs. If you have a car, you are probably familiar with such a situation: the weather is good, possibly too warm for the season, and suddenly the person in the weather forecast says that the first snow will be around you in a few days. They go to the basement to get the winter tires.

You will notice that the tires have cracked during storage. This in turn means that you can no longer use them and quickly buy new winter tires. If the money is scarce, a 200 USD loan is certainly not inconvenient in this situation.

It is similar with repairs. Maybe it’s summer and your balcony door slams so hard that the glass breaks. Now you need a new screen as quickly as possible so that it cannot rain in and burglars should not have an easy time of it.

A 200 USD small loan can also be used for medium-sized purchases. You may be saving $ 100 every month to buy a new notebook. You are still missing 500 USD. Suddenly you will find a special offer in a prospectus, in which it is offered 300 USD cheaper. If you take out a mini loan, you can take the offer with you and pay back the loan with the money that you would have saved in the next two months anyway.

How quickly is a 200 USD loan paid out?

How quickly is a 200 USD loan paid out?

Depending on the provider, the mini-loan is paid out within 3 to 15 working days. The mini loans are free of charge from the providers mentioned, which means that you only have to repay the loan amount plus the interest. If you want to take out a loan of several thousand USD, you usually do so on the basis of a calculated plan for a larger purchase or something similar.

Mini loans, on the other hand, are mostly emergencies in which some money is quickly needed. Therefore, the providers offer express options that allow you to have the money in your account within 24 hours during the week and sometimes even on the same day.

With a 199 USD credit from Fine bank, the rush fee is 39 USD, the same applies to the 200 USD mini loan from Best Bank. With a loan amount of 200 USD, Infra Bank charges an acceleration fee of 89 USD. The fees are usually due at the repayment rate. With Best Bank, a $ 200 instant loan would therefore cost a total of $ 241.32.

When do you have to repay a 200 USD loan?

When borrowing, you decide on a term. With Best Bank you can take out a 200 USD loan with a term of 15, 30, 60 or 90 days. You must have repaid your mini loan by the end of this period. The same applies to the loan with Infra Bank. Fine bank’s loan offers a special feature. At Fine bank you cannot take out a loan of 200 USD, but instead a loan of 199 USD.

From 200 USD you can choose between 30 and 60 days duration. At 60 days, you would pay two instead of one repayment rate, which incurs additional fees. With the 199 USD mini loan, there is an additional term of 15 days to choose from.

A bank or non-bank loan? When is which one advantageous?

 

 

 

The current hectic times bring situations and problems that can often only be solved by a quick financial injection. Whether it is a necessary repair after an accident in the home, or the replacement of faulty and old electrical appliances, money is needed for everything.

Perhaps you have – if you belong to the happier part of the population – saved, and you can use them to “pay for the holes” that no one planned or counted on. However, many households today have a really tight budget and the necessary financial reserve is simply not available in such situations.

The only option that comes to mind at that time is to take on the burden of debt for a while and borrow money from someone. It is practically impossible to get money from acquaintances today, but there is often an unpleasant feeling in the game that you have to “beg” your loved ones.

It is therefore easier to use institutions that are directly involved in lending money to obtain the necessary financial amount: banks or non-bank companies.

What are the advantages and disadvantages of obtaining a loan at a bank and a non-bank? When is which type of lender more appropriate and advantageous?

The cheapest loans are provided by banks

The cheapest loans are provided by banks

 

The indisputable fact and truth is that in terms of RPM (annual percentage rate of charge), the most advantageous loans that you have the opportunity to obtain in banks are.

Everyone owns at least one bank account, and you certainly do not represent the benefit either. So you know for sure that you can ask the bank to set up a so-called allowed overdraft to your current account (also called an overdraft). This is the type of loan you start to draw when you run out of money in your account.

The maximum amount of the “minus” amount is always determined by the bank based on the analysis and evaluation of your monthly income and expenses. Most often, the overdraft limit is around 1000 dollars.

Today, every bank also offers the opportunity to apply for a credit card. It allows you to pay for goods and services with it, with the provision that it is automatically a loan.

So we can say that as soon as you pay by credit card “in the red”. In other words, you do not pay from your own, but from borrowed. However, the advantage is that for each credit card there is a so-called an interest-free period (usually 45 to 55 days) during which, if you “reset your minus”, you do not pay any interest on the money borrowed.

Then there are the consumer loans. In principle, banks provide two types of “appliances” – special purpose and non-purpose. For the former, it is necessary to use the money for a precisely predetermined purpose, for the latter you simply borrow the money and you do not have to explain to anyone what it will be for.

In this context, the rule is that special-purpose loans are always more advantageous because they have a more favorable interest rate than non-specific loans. This is because when a client asks the bank to provide money, the bank also assesses its risk, ie the degree of potential inability to repay the loan.

If the bank knows what you intend to use its money for, it has a better overview of you, and therefore a higher certainty that you will not “reconsider” the money, so to speak, and that you will not end up being an undisciplined non-payer.

If you want a good loan, you can’t avoid verification!

If you want a good loan, you can

And this brings us to an important principle that is firmly valid in the banking world: if you want to borrow as cheaply as possible, you must provide the bank with as much information as possible about yourself. The less relevant data the bank has about you, the less trustworthy clients you become for it!

Therefore, when applying for most loans with a favorable RPMN, the banks will first knock you out to find out how you are actually doing with your solvency. If your creditworthiness in the eyes of the bank turns out to be low, it will certainly be reflected in higher interest on the provided loan, in the worst case, they will evaluate you as an unfit client and you can forget about the money!

In addition, the banks will check you in the credit registers to find out what your payment morale is, ie whether you have repaid your loans properly and on time in the past. If this is not the case – and it does not even have to be a big “transgression” (for example, you have been late for a short time with the monthly lease payment) – the result is in most cases uncompromising – your bank will reject your loan application!

When borrowing from banks, you will also have to provide the amount of your income and guarantee the repayment of the loan – either by finding a suitable co-borrower or guarantor, or by mortgaging your property or movable property.

Non-banknotes = less lustration, but higher interest

 

 

Although it is not possible to say about non-banking companies that they do not verify their potential clients without exception, the truth is that they tend to be much more benevolent in assessing their creditworthiness.

Non-banknotes, like banks, have the right to inspect credit registers to see which category of clients you belong to as a loan applicant: honest or defaulter. However, the reality is that they do not always use this privilege, or even if they look at you in the register, they have no problem ignoring your “transgressions” from the past.

So we could say that their tolerance threshold is set much higher than in the case of banks, and the chances of getting the necessary financial injection are definitely much higher than in traditional banking houses. Of course, it must be taken into account that the higher risk level is taken into account by non-banknotes in the form of a higher RPMN (= total loan repayment).

Today, however, they face high competitive pressure and in the market they have to compete for the client not only with each other but also with banks. This has a significant benefit for the consumer: today, it is far from the case that for all credit products, non-banknotes are set to have many times higher interest rates than banks. Of course, the differences in how much you repay for your loan still exists, but they are no longer as significant as they used to be.

What is the difference between a loan limit, a credit account and a credit limit?

 

Maybe you’ve seen ads for a credit line, credit line, and credit account and wonder what they are? In fact, all three are very similar or even identical loan products, the only thing that usually distinguishes them is the name and a few small nuances. With all three products, a limit has been set for the customer, within which money can be withdrawn. A credit limit, credit account and loan limit are like virtual credit cards where you have the required amount always available in case of any unexpected situation.

Are the loan limit, credit limit and credit account the same product?

Are the loan limit, credit limit and credit account the same product?

As mentioned above, the loan limit, credit limit and credit account are like virtual credit cards. If you have a contract with a financial institution, you have free money in the virtual account in the agreed amount and you can use it whenever the need arises. The limit that is set on your credit limit, credit account, or limit depends on several factors: your income, your prepayment behavior, and your debt burden.

To get a credit account, you need to fill in an application online, answer some questions and, if necessary, identify yourself, and that’s it. It is especially convenient to use it if you do not need to use money in your account, you do not have to pay interest on it. Unlike credit cards offered by banks, it has no maintenance fee, you only pay if you actually use the money – so the system is fair and transparent. In addition, the advantage of the loan limit is that you can always borrow more within the loan limit.

For example, if your maximum limit is $ 900, and you’ve already used up $ 450, the remaining $ 450 will still be available to you at any time. This way, you don’t have to re-apply, but you can use it easily and conveniently right away if needed. Whether you need a sudden car repair, a visit to the dentist or gifts for your loved ones. Although different financial institutions use different names for this product, the meaning and content of the product are still the same and it is a great product to cover unexpected cash needs.

Why prefer a loan limit to a small loan?

Why prefer a loan limit to a small loan?

You probably wondered if it was a loan limit, why prefer it to a small loan at all. The biggest advantage of a credit account over a loan is that once you have made it yourself, you always have extra money when you need to use it. However, if you don’t need extra money, you don’t have to pay anything to have a credit account. You will only start paying if you actually use the money in the credit account. If the loan requires fixed monthly repayments, then the credit limit allows for much more flexible payment options – you can pay with fixed monthly payments or, for example, the entire amount at once. It is also possible to make irregular off-schedule repayments at no extra charge, if you have the opportunity to do so.

Applying for a credit limit is also very easy and convenient. You fill in the application online, send it, answer a few additional questions if necessary, identify yourself and the account is open. No visiting a bank branch or waiting in line, and there are no hidden extras such as a contract fee or card / account maintenance fee. A credit limit is like a feeling of security in your back pocket, because you know that you always have a certain amount of money that you can use in unexpected situations. You never know when you will have an unexpected car repair, a visit to the dentist or a change of household appliance. It is in such situations that the limit account is especially convenient to use, because you can pay for the necessary product or service immediately and then repay the amount used appropriately. and there are no hidden extras such as a contract fee or card / account maintenance fee.

A credit limit is like a feeling of security in your back pocket, because you know that you always have a certain amount of money that you can use in unexpected situations. You never know when you will have an unexpected car repair, a visit to the dentist or a change of household appliance. It is in such situations that the limit account is especially convenient to use, because you can pay for the necessary product or service immediately and then repay the amount used appropriately. and there are no hidden extras such as a contract fee or card / account maintenance fee.

A credit limit is like a feeling of security in your back pocket, because you know that you always have a certain amount of money that you can use in unexpected situations. You never know when you will have an unexpected car repair, a visit to the dentist or a change of household appliance. It is in such situations that the limit account is especially convenient to use, because you can pay for the necessary product or service immediately and then repay the amount used appropriately. You never know when you will have an unexpected car repair, a visit to the dentist or a change of household appliance.

It is in such situations that the limit account is especially convenient to use, because you can pay for the necessary product or service immediately and then repay the amount used appropriately. You never know when you will have an unexpected car repair, a visit to the dentist or a change of household appliance. It is in such situations that the limit account is especially convenient to use, because you can pay for the necessary product or service immediately and then repay the amount used appropriately.

Applying for a credit limit is also very easy and convenient. You fill in the application online, send it, answer a few additional questions if necessary, identify yourself and the account is open. No visiting a bank branch or waiting in line, and there are no hidden extras such as a contract fee or card / account maintenance fee. A credit limit is like a feeling of security in your back pocket, because you know that you always have a certain amount of money that you can use in unexpected situations. You never know when you will have an unexpected car repair, a visit to the dentist or a change of household appliance. It is in such situations that the limit account is especially convenient to use, because you can pay for the necessary product or service immediately and then repay the amount used appropriately.

The flexible loan limit is favorable

The flexible loan limit is favorable

Bank offers a convenient loan limit service with a maximum amount of up to 1,200 dollars, and in addition, all new loan limit account openers can use the loan limit account for 30 days with 0% interest. Read more about the offer here! In addition, applying has been made easy and convenient and can be done without leaving home. Need extra money right away or do you want to have the security of money in the long run? Contact us and make your wish come true!

Always secure your friends’ loans well

 

 

It may not apply to you yet, but in the spirit of the “never speak never” rule, in the near or distant future you may be approached by an acquaintance, neighbor, colleague or friend asking for financial help.

This does not automatically mean that he is in such trouble that he will probably not be able to repay or repay the loan, but… It is always good to think about such a scenario before lending it to him.

In any case, keep in mind that as a person who does not have a valid money lending license, you do not have the opportunity to look into the credit registers and thus do not have the opportunity to “knock” your friend over.

Our advice is: if it is not really a very close person or a family member (and even in this case we recommend maximum care), for whom you would “put your hand on the fire”, you’d better politely refuse!

Later, you could grab your head and cry over the spilled milk. Experience from practice shows that loans between friends can end up in lengthy court proceedings and it also happens that the creditor loses his money for good! There is probably not much to say that not only friendly but also family ties are destroyed…

Recommend him to apply for a loan on our website and he will be sure that he will not buy a cat in a bag. We only work with solid companies.

However, if you still decide to help your friend, despite the high risk of (non) return on borrowed funds, do not just think about the amount owed, the maturity of the loan, the amount of any interest or penalties for late payment when writing a loan agreement.

Our advice is definitely the provision of funds to properly secure and the contract agreed way of ensuring commitment explicitly mention! If you are lending as a private person to a friend, you have several options to insure against his inability to meet his obligations to you.

Not all forms of security always come in handy

Not all forms of security always come in handy

The Civil Code allows, for example, the securing of your receivables by a contractual penalty, liability or lien, but not always and not in all circumstances, these forms are appropriate and advantageous.

For example, if you have agreed in a loan agreement to pay a contractual penalty if your friend does not properly fulfill his obligations to you, you cannot count on him to play a significant “deterrent” role. To put it bluntly: if your acquaintance finds himself in a tight spot, some “ridiculous” fine will not force him to return what he owes right away. In order to get your money’s worth, you will most likely not avoid a lawsuit that may not go as fast as you would like.

A lien – whether for real estate or a movable property – is an excellent form of securing a loan, but it is quite often the case that the borrower does not own any assets that can be fully guaranteed. Or even if he owns it, he can no longer guarantee it because he has it “established” due to another loan or commitment. Under normal circumstances, writing a lien on a loan on your part as a lender is an excellent move to secure your peaceful nights, but objective circumstances do not always allow it.

There are also problems with securing a claim by the guarantor in practice. Finding and convincing someone nowadays to go guarantee someone’s loan is very low, almost zero. You can also find more information in our article on liability weaknesses.

TIP: If you can, you better avoid borrowing from friends. This carries not only worries about the administrative and legal side of things, but also the sleepless nights scenario, if for some reason it happens that your friend or colleague will have a problem with repaying the debt. Instead, recommend one of the reliable online loans that we have verified and selected for you.

What to do if the borrower does not return the money?

What to do if the borrower does not return the money?

In such a case, it is not very sensible to rely on the fact that it is just a small overstep and the debtor will “get common sense” in the near future. First of all, contact him, either by phone or in person – depending on which form you prefer – and let him know that he did not return what he had. If he does not hide and refuse to communicate with you, but rather tries to persuade you to delay the due date for a certain period of time, this is the best option. In this case, ask him to sign a debt recognition. In it, you can also agree on the return of the borrowed amount in the form of several installments and extend the total maturity of the loan.

The second, for you as a creditor, a worse option may occur when the debtor refuses to sign the debt. Then don’t wait unnecessarily and proceed to vigorous enforcement. You will have to bring an action in court in the form of an application for a payment order to pay the amount due. However, if you are not proficient enough in legal matters, you probably will not be able to do without an experienced lawyer who specializes in debt collection. It will not be free and you still have to count on a court fee, which represents 6% of the amount sued!

If you are aware of all the possible risks, but you still haven’t told your friend and you’re going to lend him money, we recommend two full-fledged ways to save you a lengthy court file: To secure your claim:

  • Liability by notary minutes
  • Bills of exchange liability

Liability by notary minutes

Liability by notary minutes

We speak of this type of liability if you conclude a loan agreement in front of a notary and he notates the notarial record. Such a contract has a higher credibility and probative value in the eventual recovery of the debt than a conventional contract concluded only in the presence of the parties – the creditor and the debtor. In addition, the notary, as a public authority, is responsible for identifying both parties to a contractual relationship.

Notarial companies also use the notarial guarantee for some of their loan products, providing them with a high guarantee that they will get their money in the event of non-payment of the loan without any major problems. The notarial record is in itself already a writ of execution – it is therefore possible on its basis, if the debtor does not fulfill his obligations to the creditor, practically “immediately” to carry out the execution.

According to the law, the notarial record must contain the debtor’s consent to its enforceability – the so-called enforcement clause. This, to put it simply, means that the court will then, if you “scold” the friend you have borrowed for money that he does not want to return to you, without further in-depth examination of the case, knocking out the execution . No lengthy coaters!

Therefore, you can also use it for sure when providing loans for non-banknotes! If you are writing a loan agreement, not explicitly, but still recommend that you do so in front of a notary, who rather notes it. Although the fee of a notary costs something, it is not a horrible amount (the notary’s minimum fee is 16.60 dollars by law) and with a higher amount of funds you lend, it is worth it. In addition, given that, without a notarial deed, traditional court fees would represent 6% of the amount sued, which, for example, in the case of a 3,000 loan, could be 180, everything is even clearer.

Too much consumer credits? Think about redemption of credits.

Consumer credit, whether it relates to earmarked or unrestricted loans, is a great financial tool to finance your projects other than the purchase of real estate. However, it is still an amount to be repaid each month, and it can happen that credits accumulate until you put yourself in a difficult financial situation. The solution of buying consumer credit can then bring you a real breath of fresh air and allow you to find a balanced budget.

The different types of consumer credit

The different types of consumer credit

Consumer credit is a contract by which a lender (a financial institution) provides you with a sum of money (up to 75,000 USD) which must be repaid in installments and which is not intended for the purchase or construction of real estate. There are two types: assigned credit which finances a defined asset such as a car, a gift, a trip, capital equipment, works.

Unrestricted consumer credit makes it possible to obtain a sum of money, the use of which is left free to the borrower. Thus “personal loans”, “revolving credits” (formerly called revolving credits), fall into this second category of unrestricted credit.

In the majority of cases, consumer credit is distributed by banks and most so-called specialized establishments. These establishments are regulated and controlled by the banking authorities and grouped into professional associations (the FBF and the ASF).

Restricted loans, on the other hand, are mostly taken out outside of bank branches, and mainly in retail and distribution companies. Since the 2010 reform, the employees of these companies who are not bank staff must be trained in the distribution of consumer credit and in particular in the prevention of over-indebtedness.

Reasons to redeem consumer loans

Reasons to redeem consumer loans

Despite all your precautions, it may happen that your consumer credits accumulate to threaten the balance of your budget. The monthly payments then become too heavy and your living quarters decrease until becoming insufficient to ensure your regular expenses. In this situation, your debt is too high and it becomes urgent to take action.

The purchase of credits allows you to find a balanced budget. It is also a timely solution when a change in family or professional situation causes your income to decrease. Likewise, when you are considering new investments but your indebtedness no longer allows you to take out a new loan, buying back credits can be of great help to you.

The characteristics of buying back consumer loans.

The characteristics of buying back consumer loans.

The principle of buying consumer credit is simple . The idea is to have all of your consumer loans bought back by your bank or other financial institution, and replace them with a single loan on more favorable terms. This can be done regardless of the number of consumer loans and whatever their rate or duration.

After buying back credits, you will only have to pay one monthly payment, adapted to your income and current expenses. You can thus lower the amount of your monthly repayments in order to find a healthier financial situation.

In some cases, by extending the duration, you can reduce your reimbursement charges by more than 50%. The purchase of consumer loans can also include other debts (such as tax arrears) or an additional amount that will allow you to finance new projects.

This redemption of consumer credits takes place over a period of between 5 years and 12 years. You also have the option, if you own a mortgage. This is called mortgage repurchase and in this configuration, you can get a longer loan term, up to 25 years.