Do you have one or more credits outstanding and want to lower your monthly payments? Are you planning to lower the overall cost or the duration? Perhaps you want to make new investments without unbalancing your budget? Several options are available to you, including renegotiating a loan or buying back credits. What are the characteristics of a loan renegotiation or a loan buy-back? What are their differences and their respective advantages? How to choose between one or the other of these two solutions? Follow the guide with Across Lender.
What is a loan buy-back?
The repurchase of credits consists of regrouping part or all of your credits in progress to replace them by only one loan of consolidation on the most advantageous conditions.
You can thus group together, several consumer loans, a mortgage, personal loans and even other debts such as tax delays, debts owed by bailiffs, or family debts.
The objective may be pursued to lower your monthly payments, more often by extending the duration of the loan, in order to benefit from a more important living. It can also be to simplify your management (you only have one line of credit), or to make a new investment without unbalancing your budget, by integrating for example an additional sum in the new single credit.
Keep in mind: A loan buyback must be made on at least two outstanding loans, unlike the renegotiation of loans which can be carried out on a single loan.
What is a loan renegotiation?
Renegotiating your loan consists in asking the crediting institution which granted it to you, to modify the conditions, in particular the interest rate.
You will be able to take advantage of the most advantageous rates of the moment and lower, according to your wishes, your monthly payments, the total cost, or the duration of your renegotiated loan.
The operation requires diplomacy and arguments to convince your banker, but more often than not, he will lend you an attentive ear, because you are for him a precious client that he does not want to see going to the competition.
However, the credit institution wants to preserve its commercial gains, and your request for renegotiation must be justified and defended.
Credit buyout or renegotiation: how to choose?
Buying back credits often has more costs than renegotiating, but it is a very advantageous financial transaction to lower your monthly payments and simplify your management.
In addition, with a loan repurchase, you can also integrate an additional sum to make the next investment, or reduce your debt in order to make a real estate purchase.
In addition, renegotiating loans can be easier because you only have to convince your banker. Contrary to the repurchase of credits which more often requires to make play competition between the banks.
Using a broker who specializes in buying credits will be very useful. For example, the advisers of Across Lender allow you to maximize your chances of obtaining a favorable, fast and advantageous agreement for your repurchase of credits.
Good to know: buying back credits does not necessarily require changing banks, and sometimes you can contact your usual credit institution to carry it out.