When the finances of a household suffer from too many monthly payments of credits, the financial situation can be complicated. Between the repayment of the car loan, that of the mortgage and sometimes in addition to the monthly payments of the loyalty card of a department store, the rest to live is too low. There is a solution that can help a monthly cash management simpler, it is the grouping of loans. While this financial package is certainly an upgrade of its monthly expenses, to access it must however meet certain criteria.
The principle of this financial solution, also known as the purchase of credits, is to pay off all credits in progress thanks to the subscription of a new single credit. It will buy all consumer loans but also the mortgage. The low level of current interest rates will thus be an opportunity for one side to benefit from a more attractive rate for the new credit, the other to reduce the single repayment monthly, by increasing the repayment term of the loan. especially.
The beneficiaries will thus benefit from several advantages. The first is certainly the amount of the monthly payment, which can really be revised downward. To the sum of the consolidated debts may also be added additional cash, to be requested at the time of the merger operation. In addition, instead of multiple creditors the borrower will have more than one interlocutor, which greatly facilitates his personal financial management.
Finally, the loan consolidation is available to all consumers who have one or more credits in progress, whether they are tenants or owners, hosted by a third party or housed by their employer. When there is only one loan in progress, a new project to be financed can be included in the financial package. In this case, it will be necessary to call on an organization specializing in the purchase of credits, more able to realize the constitution of a personal financing file and especially adapted to the needs of the borrower.
The loans that are eligible are all consumer credit, with no mortgage guarantee to provide. Among them we can name auto credit, credit work, personal loans, revolving credits, bank overdrafts, and finally all mortgages. Note that these may have been subscribed at fixed or variable rate, and with or without mortgage. Professional debts, such as late payments URSSAF or VAT or gambling debts can not fall within the scope of this financial package. In a loan consolidation transaction it is possible to buy back only all consumer credit, or only the home loan, or both. In the case of the repurchase of the mortgage, it is not a matter of renegotiating with a bank or its lending institution a more advantageous rate, but of turning towards another lending organization.
Since this operation is primarily a banking operation, the financial institution in charge of it must carry out certain checks before giving its consent. To establish the eligibility of the future borrower, it is first of all necessary that he justifies his professional situation. The more stable and long-lasting it is, the greater the chances of obtaining an agreement, the repayment of monthly payments being then much more guaranteed. In order to be able to cope with the maturity of the same single credit, the borrower must have the necessary income. Pay slips, proof of property income, welfare benefits and all proof of income must be submitted. The lender will calculate the level of indebtedness and the rest to live. The file will only be accepted if the different parameters are coherent.
Then comes the financial situation which must not be tainted by any major incident. A borrower stuck at the Bank of France for unpaid, a regular overrun of his authorized bank overdraft, an incident of settlement of credit maturities, misuse of his bank card, can not benefit from a consolidation of credits. Only one exception exists for the owners, who, even if they are registered, have the possibility to give as security their property. The project will then be subject to a feasibility study.
Another problem that may lead to a refusal of the request to buy back credits, a bad check rejection incident, which is immediately reported to the national file of check incidents.
Financial institutions systematically check the national files of the Banque de France and categorically refuse any request if the credit applicant is on one of these lists.
Even if there are legal standards for the acceptance of a file, financial institutions lenders also have assessments specific to each. However, these are primarily based on the borrower’s personal and family situation. This means that you must first have a majority. An applicant with any disability or loss of civil rights can not claim a loan consolidation. Also excluded are people in the course of divorce as well as companies. For the latter there are companies specialized in this type of repurchase of their credits. Being a holder of a residence permit or foreign national also does not make it possible to make a request.
The second most important criterion for the acceptance of the file is the solvency of the borrower. The conditions requested are in principle the same as those required by banks when subscribing to a conventional credit. Above all, the debt ratio should not exceed 33% compared to net monthly income. The remainder to be lived when all the charges and repayments of credit are paid, is also a major criterion that the financial organizations take into account. This must be important enough to avoid financial difficulties. Income stability is also a key element, so the type of employment contract (permanent, fixed-term, civil servant, retired) is a decisive factor. Alimony and family allowances can be taken into account in the calculation of net income. When the applicant is a trader, craftsman, or liberal profession, it is the last three balance sheets that are taken into account to check the solvency.
The age of the applicant is another acceptance criterion on which lending institutions are based. These are rather flexible since they take into account the evolution of life expectancy. In addition to this scale, retiree resources are also important. For a purchase of consumer credit, you must have a maximum of 80 years on the last payment date and this limit is up to 90 years, in the case of a mortgage loan. In this case, the uncompleted goods that are unfinished or intended for professional use, as well as mobile homes, camping, boat, wooden constructions etc. can not constitute a guarantee.
The specialized institutions all have online simulators. These easy-to-use, fast and efficient tools allow you to know in a few minutes if an operation is possible. It is thanks to the knowledge of the conditions of acceptance of their banking partners that the advisers can give an adapted answer. A tailor-made loan offer can be established upon receipt of all supporting documents. A specialist advisor will quickly check the eligibility and feasibility of the funding file.