The advantages of buying back tenant credit can be manifold:
- rebalance a financial situation, regain a balanced budget following a drop in income (divorce, job loss, illness).
- avoid a plan with the debt commission,
- increase purchasing power
- the debt ratio,
- regain serenity and improve your relationships with your banker.
Another advantage of buying back credit and because income has increased, may be that of accelerating the repayment of loans in progress with a drop in the overall cost, and thus of planning a real estate project or other investment.
Principle of the repurchase of tenant credit
Tenants or people accommodated free of charge who have taken out several bank loans (assigned loans, revolving loans, work loan, consumer loans, etc.) and who can no longer manage to pay the amount of their charges sometimes use this operation. This arrangement, which allows them to rebalance their budget in a sustainable manner while freeing up cash, is set up by a bank, a banking establishment or a broker.
It consists of combining its various outstanding loans into one in order to benefit from a single loan with a reduced monthly payment in accordance with the borrower’s repayment capacity. In return for this reduction in the single monthly charge and the revision of the interest rate, the new grouped loan will have a longer repayment term. This banking technique is of interest to all tenant profiles, whether they are retired, civil servants, employees or liberal professions who are victims of an accident in life, students, etc.
This technique which avoids ficp filing and the use of the debt commission allows the subscriber to benefit from an additional amount. This additional cash will be integrated into the credit repurchase. It will not exceed 10% or maximum 15% of the redemption. The subscriber can use it for his personal needs such as the purchase of a car, a motorcycle, the financing of marriage, a trip or for free use. Note that in the context of an earmarked loan such as the purchase of a car, he must provide a supporting document such as a paid invoice or a quote.
Also remember that this operation does not only apply to over-indebted tenants. Those who wish to benefit from cash or additional financing subscribe to it in order to stabilize their budget while making their project a reality
What are the advantages of this operation?
This banking transaction has many advantages for the tenant. Firstly, it allows him to soften the management of his finance because instead of having several credits, monthly repayment deadlines and several interlocutors, he will have only one loan with a single interlocutor. In addition, the repurchase of credit helps him to get rid of revolving credits granted at a high readjustable rate.
These credits are indeed transformed into a fixed rate in order to reduce its debt. In this operation, the borrower can consolidate as much debt as he wants as long as it does not explode his debt ratio. Finally, tenant borrowers have an advantage if they ask for cash because it benefits from a more attractive interest rate than restricted loans or revolving credits.
How to reduce the cost of this operation?
If the tenant wishes to readjust the monthly repayment according to his income, he can either do the canvassing by the bank himself, which can consolidate his debts, or go through an intermediary in banking operations. The first solution is adequate if he knows this market and knows how to avoid the traps of a buyout contract. But if he cannot compete with the comparison of the different buy-back rates on the market, or if the negotiation of the different elements of this operation is difficult, it is better for him to use a broker in buyout of tenant credit.
This brokerage professional helps him to access the best buyout offers while accelerating the time to obtain this refinancing. To do this, he just has to carry out a free simulation on our site. And if his project is feasible, he can accept or decline the offer to buy cheap tenant credit that we will offer later. This offer is valid for a period of less than 2 months.