The repurchase of credit is a financial operation which can prove to be very advantageous when it is done intelligently. To successfully buy back credit, there are 5 steps to follow in order to present a good file to your bank and thus be able to buy back credit on attractive terms.
Gather sufficient information on the repurchase of credit
Borrowers have struggled to assimilate the concept of credit repurchase when it first appeared on the market. They then adapted it when they discovered its multiple advantages. However, certain information gaps hamper the complete assimilation of the concept, in particular with regard to banking concepts and the steps to be taken.
The advantages of buying back credit
The repurchase of credit remains the preferred solution of the majority of the borrowers when it is a question of regrouping the credits, of reducing the monthly payments to be repaid, and thus of preserving the financial stability of the borrower. The constitution of a solid file is however essential to carry out the negotiation well and to obtain the green light from the credit institution.
The credit buyback simulation
A credit repurchase transaction consists of several stages. None of them should be overlooked. The borrower is first required to check his financial situation before making his request. The knowledge of credit seekers in matters of finance and banking concept is generally basic. It is therefore advisable to use credit buy-back simulations. Several simulation sites are present on the internet, they offer simulations and advice which can be very useful in making a good choice.
A solid file to present to your bank
After choosing the most suitable loan buyout, it is now a question of building a solid and complete file. This file must include all necessary and compulsory supporting documents. The credit institution may require the inclusion of additional supporting documents for certain specific credit redemptions.
The credit buyout validation step
The filing of the loan buyback request file is followed by a validation step where the bank intermediary and the broker carry out an exhaustive check of the file to verify the conformity of the documents. They are then responsible for making a report which will be the last green light to release the loan.
The five stages of buying back credit
The procedure for obtaining a loan repurchase consists of 5 steps:
- The fulfillment of the request – A signature of a capital search mandate is sent to the credit institutions by the broker representing the applicant. The legal procedure is thus launched with these establishments. No commitments or additional costs during this first stage;
- The proposal of a solution The banker in charge of the file offers a solution for grouping loans adapted to the applicant’s needs;
- The assembly of the file – We then proceed with the assembly of the credit repurchase file, including the supporting documents required by the broker, among which we find:
- Photocopy of the applicant’s national identity card;
- Amortization tables for outstanding loans;
- Supporting documents of the applicant’s income;
- Bank statements
- Signing the contract – The applicant signs the credit repurchase contract if the offer seems attractive to him
- The release of funds – After a withdrawal period, the funds are finally released. During the withdrawal period, the borrower has the right to re-examine the offer and to refuse it if he changes his mind.