With interest rates that remain at very low levels, borrowing continues to attract borrowers. Remember that this operation allows you to reduce your monthly payments while simplifying its management and integrating new potential investments. On which criteria to assess the interest of a loan buy-back and how to compare the offers? Here are the important points to keep in mind to make a successful purchase of credits.
How does the credit buyback work?
The principle of buying back credits is simple: it consists of grouping all or part of your current credits, including if they are of different types (real estate loans, consumer loans, revolving credit, tax, family or rental debts ) and replace them with a single consolidation loan on more favorable terms. You can thus benefit from a single reduced monthly payment (the reduction can reach 50%), also benefit from simplified management with a single line of credit, integrate a new sum to invest, or even save on the overall cost. of your credit by taking out more attractive borrower insurance.
Why compare offers?
There are many organizations and banking establishments which offer solutions of repurchase of credits. Before studying the points to compare, remember that it is in your best interest to get the services of a specialized broker to put the odds in your favor. Solution Finance advisers provide you with support that is perfectly suited to your needs, allowing you to meet all the conditions for a favorable loan buy-back.
When you want to consolidate loans, it is important to be able to compare the offers to choose the most attractive. Depending on the organizations, the rates offered, the amount of the fees, the duration of the credit and the insurance conditions may vary. Better to have the help of an advisor to choose the buyout proposal that best suits your situation in order to gain maximum benefits.
What are the criteria to assess?
Buying credits can help you find financial peace by rebalancing your budget and gaining purchasing power. For this, you will have to evaluate the different offers that are offered to you on several points.
First, the TEG, or Global Staffing rate. This rate includes all the fees that you will have to pay in connection with the subscription of a credit repurchase contract. And especially the administration fees, insurance costs and interest on your new consolidation loan.
Then compare the nominal rate of the new loan. It is from this rate that we can calculate the interest related to your monthly payments.
Study the monthly payments and the duration of the credit which are proposed to you. The monthly payments correspond to the amount that you will have to repay each month. You must have monthly payments that do not exceed one third of your household income (less than 33% of your income). As for the duration of the credit, it corresponds to the number of monthly payments that you will have to pay to repay your loan.
In addition, there is another important point to compare: the costs. From one organization to another, these costs can vary from simple to double, and it is a criterion on which it is wise to know how to compete.
Also evaluate the borrower insurance that is offered to you with your loan repurchase. It is compulsory and will be used to cover possible payment difficulties in the event of unemployment or accidents in life. You will also have the option of choosing insurance that is independent of the credit institution that offers your loan repurchase. With equal guarantees, you are free to take out the most advantageous insurance.
Our advice: you can now use a credit buyback simulator to check the benefits you can get from buying back credits. For example, go to the Spin Lender website and connect to our simulator