In the space of a few years, it is possible to end up with several credits to be reimbursed: car purchase, financing a personal project, renovation work, etc. http://www.jovenivola.com/payday-loan-consolidation-quick-app-if-you-want-to-combine-payday-loans-into-one/ fleshes this out
It can be difficult to maintain a financial balance in this situation, especially when 'There are unforeseen events, such as the loss of a job or the birth of a child. A solution when the monthly payments become too heavy: the broker in the repurchase of credit.
The repurchase of credit, a solution to restore order in its repayments
Various and varied monthly payments, direct debits on different dates… When an individual has to face a large number of credits, and therefore several repayment plans at the same time, the situation can quickly turn into a headache. And if the borrower has consumer loans at very high rates such as revolving credit, he may be in financial danger.
The repurchase of credit makes it possible to gather its various credits into only one. Certain organizations can indeed redeem your credits and thus allow you to have only one monthly payment to pay.
This reduction in monthly payments can go up to 60%, which makes it possible to see more clearly financially, and even to consider the financing of new projects…
How does borrower insurance work for a loan buyout?
As with a conventional loan, the borrower has no obligation to take out insurance to cover the risk of default. However, banks often make insurance an acceptance criterion, especially if the borrower has no collateral (life insurance, surety, etc.).
To lower its borrowing rate, however, the latter remains free to apply to an outside organization to ensure its loan. This is called the delegation of insurance. This is possible both before and after the signing of the credit offer.
A broker to facilitate his repurchase of credit?
Whether a borrower approaches banks or institutions specializing in the repurchase of credit, he will find himself faced with a wide variety of offers. However, not all are created equal. Some banks charge particularly high rates compared to others. Not to mention that certain organizations only offer groupings of consumer loans, or even exclusively groupings of mortgage loans (that is to say real estate loans with a mortgage as collateral).
Managing a loan buy-back is a complicated task. To avoid getting lost, it is better for the borrower to be accompanied! This is, in particular, the role of the loan repurchase broker, an intermediary in banking operations responsible for finding the best performing loan offers.
Credit repurchase brokers are fully conversant with consumer credit regulations and have legal expertise. Thanks to their professional network, they can find better rates than an individual who applies alone.
In addition, brokers are experienced in this kind of technique and carry out these procedures more quickly than an individual. Ideal for a borrower with a project to finance as soon as possible! After studying its situation and then peering through the offers from banks and partner credit institutions, as well as their conditions (borrowing rate relative to the loan repayment period, cost of insurance, etc.), the broker will target the proposal best suited to the borrower's project.
Finally, for some people in over-indebtedness, using a broker is the only solution to obtain their credit repurchase. Why? Quite simply because brokers provide better guarantees to banks.
Note: what are the comparators and simulation tools worth?
If they cannot replace the broker properly, simulation tools and comparators are very useful. They allow in particular to observe the rates charged, and thus, to get an idea of the credit market. They can even, potentially, allow the borrower to find a more attractive loan offer than that offered by a broker since the sweep is wider (a broker sticks to his network of professionals).
Credit repurchase broker: how much does it cost?
A loan repurchase broker will not cost you a cent until you sign the financing offer he offers you. On the other hand, if you sign this offer, the intermediary in banking operations will be remunerated according to a percentage. The latter will be applied to the amount of the file financed.
For a consumer credit buyout, this percentage is generally close to 1%. For a mortgage grouping, it hovers around 5%. Generally speaking, a broker will not exceed 7%. Because while it is normally free to set its rate of pay, many credit agencies set a ceiling. All the more so in the event of significant production from a single bank, the broker receives a bonus.
Good to know: you have a right of withdrawal
Have you signed the broker's offer in a hurry? Note that you can retract within 15 calendar days if it is a consumer credit buyout. For a buyout of a mortgage, this period is reduced to 10 days, unless the mortgage represents less than 60% of the combination. If you are on time, the procedure will be canceled and you will have no cost to pay.