What is the repurchase of credits?
The repurchase of credits, sometimes qualified as refinancing of credits, restructuring of credits or even grouping of credits, is a financial operation which consists in repaying all the credits (real estate credit, consumer credit, revolving credit, car credit, works credit, etc.) – contracted with one or more credit organizations – by taking out a single loan granted by a banking organization specialized in this type of operation.
How it works ?
You complete your request to buy back credits online. It’s quick and easy !
1. A Across Lender financial advisor studies your situation and sends you a tailor-made financing plan, optimized and adapted to your needs,
2. A Across Lender credit analyst takes over and becomes your privileged contact until the signing of your overall credit. It becomes your exclusive intermediary with the new lender.
3. Your credits are grouped and restructured into a single credit at the best possible rate, without changing banks.
What are the advantages of buying back credits?
The loan repurchase operation makes it possible to drastically reduce the amount of monthly installments, usually by extending the duration of repayment of the credit at a more advantageous interest rate. If necessary, when negotiating the repurchase of credits, the client can negotiate additional cash in order to give them some leeway in managing their cash or finance a new project.
The repurchase of credits is particularly suitable when the cumulative maturities of several credits exceed the repayment capacities of the debtor (debt ratio too high). The refinancing of credits thus makes it possible to get out of a possible situation of deleveraging or over- indebtedness from which it becomes difficult to get out by other means.
The consolidation of loans allows households to regain financial balance, by substantially reducing the amount of monthly payments. And to avoid for some, the referral to a commission of over-indebtedness of the Bank of France or the seizure of their real estate, if they are owners or accessing the property.
Influencing factors for a loan buy-back
There is no shortage of economic reasons (notably economic reasons), some of which can be easily identified:
The increase in household debt (in connection with the real estate boom), the increase in the repayment burden of variable-rate loans in a context of rising interest rates, the weak gains in power purchase, a bridge loan that drags on.
Consequently, the repurchase of credits can concern anybody whereas initially it was reserved for a more restricted clientele confronted with recurring financial difficulties.
Role of the credit broker
The credit broker or intermediary in banking operations (BIO) is a finance professional. He is generally mandated by several banks and presents all of their financial products which he must know in great detail. As part of a loan buy-back operation, its added value lies in the personalized study of each situation in order to offer a tailor-made solution to each of its customers.
For essentially cost reasons, banking establishments outsource these skills and refer to a network of brokers.