The repurchase of consumer credit can, at a certain moment, be interesting. This makes it possible to group together its various consumer credits contracted and to pay only one deadline. The purchase of consumer credit can be made from:
- From your bank
- From another bank
- From another lender
When to redeem credit?
The buy-back of consumer credit by another bank may have advantages, such as having access to more competitive interest rates . This is why it can be interesting to make a simulation of buyback of consumer loan , especially when:
- Interest rates go down or stay lower than your current rate ;
- You want to terminate a loan from a specific organization
- You want to consolidate all your consumer credits to have only one interlocutor;
- You want to modify your borrowing period in order to lighten your monthly deadlines.
This is where you will have to deal with a credit redemption fee ! Whether they are mandatory and therefore directly included in the cost of the purchase, or optional and excluded from the total price, you will have to be vigilant about what you will have to pay for such an operation! Depending on the amount of the fees, you may have to review the financial interest of your redemption procedure.
What are the different charges for a consumer credit buyback?
Early repayment benefits
A repurchase of credit mechanically entails its early repayment by the organization that has accepted you . For a purchase of consumer credit more specifically, carried out after May 1, 2011, you will only have to pay these indemnities in the case of a capital outstanding of more than 10 000 dollars :
- If you have more than 12 months of reimbursement, these fees will represent 1% of the capital reimbursed in advance.
- If you have less than 12 months of reimbursement, these expenses will constitute 0.5% of the repaid capital.
However, the cost of early repayment of a consumer credit may be nil when:
- You negotiate these fees with your bank
- Your contract provides for a fee waiver
- If your outstanding capital is less than 10 000 dollars
Note that the amount of this type of credit surrender fee is framed by Article R312-2 of the Consumer Code. Thus, the credit surrender allowances can not exceed 3% of the outstanding capital .
A repurchase of consumer credit is a banking operation. It is therefore subject to fees , which can range from 1 to 7% of the capital purchased . As you can see, they can be very heavy. However, note that some actions on your part may reduce these fees , such as the return of a good record, or even delete them altogether if a bank account is opened at the redeeming agency.
These fees also vary depending on the number of consumer credits you have .
If you want to use an expert body to find you the best offer to buy credit, you will certainly need a specialized broker . Such a recourse will then generate brokerage fees, at least if the broker does not get paid directly by the body making the repurchase of credit. If this is the case, the broker’s commission can represent from 1 to 5% of the amount of the new loan .
Of course, this commission is paid only in case of signature of the conso purchase agreement.
When consolidating consumer loans, insurance is rarely required. However, when this is the case, a death and disability insurance is required. This is where additional fees must be taken into account.
So know that depending on the level of coverage you want, your contributions will not be the same . You can thus add in addition to the invalidity-death the guarantee temporary incapacity of work. Study the offers carefully to select the most suitable one.
How to benefit from a cost of repurchase cheap credit?
When consolidating all of your credits, it is important to compare the current credit surrender rates . Indeed, current rates may be higher than rates offered a few months or years ago.
In this case, get the various credit agreements you want to buy, then compare their borrowing rates with those proposed for the repurchase of credit you want . Be aware that a 1% differential between the rate charged and the new rate can be considered an advantageous transaction .
In any case, to benefit from a purchase of a really good credit , it is essential to:
- Take the time to reread all your contracts
- Calculate all your expenses (prepayment, fees …)
- To inquire with several banks
- Negotiate, by playing the competition between credit companies
Berves advice! Anyway, if you have the will to subscribe a personal loan on Good Finance, do not hesitate to use our comparator of credit conso on line, which will allow you to find the offer of consumer credit the more suited to your needs at the best rate, or to survey the market to benefit from a solid basis of negotiation.