The essentials on buying back credit.
The repurchase of credit is an operation more and more current presenting a real financial attractiveness. What are the Principles and Benefits, all in detail?
What is credit repurchase?
The repurchase of credit is an operation which consists in regrouping in a single credit, all the loans contracted by an individual. This grouping system is offered by most lending institutions such as banks and other financial organizations. The repurchase of credit is intended for all the private individuals having several credits in progress, that it is of mortgage, revolving credit or credit works and leisures.
A new credit file is then created in order to reimburse all the capital still due. The repurchase of credit is thus carried out under the same conditions as a traditional credit file.
Principle of credit consolidation
What characterizes the repurchase of credit, it is that the individual profits from multiple advantages, besides the fact of being able to erase part or the entirety of his debts. The principle of this grouping system is to have your credits bought back by another lending institution, with which a new credit file will be created.
The borrower therefore undertakes to repay a single credit which covers all loans still due. This new credit is defined by a reduced interest rate, negotiable on a case-by-case basis. In addition to a lower rate, the repurchase of credit also makes it possible to extend the duration of repayment, which results in a single reduced monthly payment.
Towards financial recovery
Generally, the repurchase of credit aims mainly to avoid any incident of repayment of credit. In times of crisis, more and more individuals are unable to repay their loans. However, the repurchase of credit allows them to get rid of their loans, but also allows them to improve their purchasing power. Indeed, accumulating too much credit results in a considerable drop in resources. With a reduced monthly payment, the borrower has a cash facility. It is therefore the ideal solution for redressing finances, which also allows easier cash management.