What criteria to be eligible for a redemption of credits?

 

With the fall in interest rates in recent years, the repurchase of loans has attracted very many households. Whether it is to improve purchasing power by lowering the amount of monthly payments, or to simplify management or make new investments, buying back credits has multiple advantages. However, as with any loan, the lending organization will need to ensure that the new single credit will be repaid.

This is why a favorable response will be subject to an in-depth analysis of the personal and professional situation of the subscriber. What are the requirements for determining whether a redemption request is eligible or not? What are the main reasons for refusal? 

An evaluation score that can vary significantly from one establishment to another.

An evaluation score that can vary significantly from one establishment to another.

Even if it is impossible for a bank to predict without making a mistake if its client will respect its commitments throughout the duration of the credit, it has a precise scoring which allows it to quickly decide if a request can be received favorably.

This analysis grid is more or less the same from one organization to another. However, it is good to remember that a request can succeed when several organizations have already refused. Joining the services of a broker who is an expert in the repurchase of credits will therefore be an asset to accelerate and favor the positive outcome of a request for repurchase of credits.

What are the eligibility criteria for buying back credits?

What are the eligibility criteria for buying back credits?

First, remember that the redemption of credits must be done at least on two credits being repaid. Among these credits, at least one of them must be a consumer loan, such as a personal loan, a work credit, a car loan, or even a revolving credit.

Among the criteria that will be assessed by the bank, let us first mention the creditworthiness of the applicant. Thus, after consolidation, the monthly payment of the credit must not be greater than 33% of the borrower’s income. If the applicant has significant and stable income, if he owns his property and that a mortgage can be taken out, certain establishments will accept higher ratios, ranging up to 40 or 50% of debt .

In all cases, the level of income is a determining criterion. Just like the type of employment contract. It is thus essential, in the majority of the cases, that the applicant is in CDI, civil servant or in retirement. If he is a Self-Employed Worker (TNS), his request may be received favorably provided that he presents his last three tax notices and his tax forms for the last three years preceding the request.

Another important point studied: the subscriber’s bank balance. The financial institution will assess three bank statements to verify that the applicant is demonstrating good management. Suspicious movements, repeated overdrafts, rejection of samples will be negative points likely to result in a refusal on the part of the lender.

In addition, the scoring will endeavor to verify that no credit repurchase has been carried out on an earlier date. In general, banks prefer files in which this is a first request, but it is possible to carry out a new loan repurchase one year after a previous consolidation operation. In any event, no payment incident should have been observed during this period.

Finally, the age of the applicant will be studied by the organization. Thus, the age of the last single credit repayment deadline may be up to 80 years, and 90 years if the loan repurchase includes a mortgage with mortgage.

What are the cases of refusal of a loan buy-back request?

What are the cases of refusal of a loan buy-back request?

Certain requests are systematically refused by financial organizations. This will for example be the case if the borrower is registered in the central check file (FCC) which records payment incidents. Likewise if he is in a situation of over-indebtedness and he has filed an over-indebtedness file with the Banque de France.

It sometimes happens that a file at the FICP (Personal Credit Payment Incident File) results in an agreement if the applicant is the owner. However, even if owning a property improves the scoring of a request, a FICP filing will most often lead to a negative response.

Other cases of refusal can be raised: when the applicant’s nationality is not French and he only has a residence permit, if he is in the process of divorce or if his request to buy back credits includes gambling debts, for example.

Remember: although stable income is essential to obtain a loan buy-back, workers on fixed-term contracts can receive an agreement under certain conditions, such as proven seniority in the business, or even real estate on which a mortgage can be realized.

How to succeed your credit for a first real state purchase?

With mortgage rates at the lowest, at 1.13% on average for October 2019 (CSA / Housing), first-time buyers are more and more likely to want to invest in stone. Some tips to put into practice to borrow at the best conditions.

Define your borrowing capacity

Define your borrowing capacity

According to a study by Harris Interactive carried out for the Council of Notaries, first-time buyers are buying their property increasingly young. The average age to become a homeowner has dropped from 38 to 32.

With falling interest rates; banks are indeed more favorable to grant mortgage loans to young workers, whether they have a personal contribution or not.

To optimize your chances of being granted your credit by your financial institution, it is important that you demonstrate a stable financial situation, and not exceed 33% of debt in relation to your income.

Finally, it is important to take stock of your possible other outstanding loans, to determine if you have enough left to repay your home loan.

Find the best rate

Find the best rate

Your bank can offer you a mortgage, but hiring the services of a broker can help you find the best rate. This professional is based on the rate scales applicable by the banks and determines with you your repayment capacity and the amount of your loan.

According to an OpinionWay survey, almost 30% of French people have used a broker.

Compare different loan insurance

Compare different loan insurance

Insurance of a mortgage is not compulsory, but the bank can require it, especially in the event of risks linked to death and disability. In all cases, you are not obliged to choose the insurance offered by the lending institution.

Take the time to compare the costs of the various types of insurance offered on the market. Be careful, however, that the insurance contract presents guarantees similar to that offered by the lending institution. More information on the website of the French administration.

Study the homeownership aids you can claim

Several government aids have been put in place to facilitate access to property for first-time buyers, including:

  • – The zero rate loan which can finance up to 40% of the amount of your property purchase, without interest or bank charges.
  • – The social accession loan, allocated under means conditions and able to finance the entire real estate operation.
  • – The housing savings loan that can help you buy your main residence if you have had a housing savings account or plan for four years.

In addition to the aids mentioned above, it should be noted that there is also an approved loan, still little known and which is granted without means test, thus making it easier for you to buy or build your main residence.

And if you plan to buy in new real estate, know that you can claim other devices, under certain conditions of eligibility, as is the case of rental-accession or accession at controlled prices.

Take into account notary fees

Take into account notary fees

Different notary fees depending on the condition of the property. They are around 7-8% in the old and 2-3% in the new.

According to the latest outlook from the Notaries of France, 1,020,000 transactions were carried out over twelve months at the end of July 2019, whereas last year the number was 953,000. According to this same study, this increase can be explained there also by the attractiveness of interest rates.

Prepare for retirement with a loan buy-back.

 

Prepare for retirement with a loan buy-back

Prepare for retirement with a loan buy-back

When retirement age comes, it is good to take advantage of your free time and for that it is better to have cash. How to save money? For example, on the cost of your credits or on the amount of your monthly payments which can be renegotiated on advantageous conditions thanks to a well-carried out loan buy-back.

The retirement is there. Unless you are prepared for it, your income will inevitably drop even though your expenses are the same. The solution may then be to lower your credit charges by renegotiating your existing loans to lower the cost and the monthly payments. With current rates going down to historic records, you can save a lot.

For example, when the rates were 4.20% in March 2012, the total cost of a mortgage of 200,000 USD over 20 years was around 95,954 USD. The same loan taken out today would cost around 69,341 USD. A saving of – 26,660 USD!

How do you go about making a successful loan buyout?

How do you go about making a successful loan buyout?

It is important to consider several criteria. First, you have to take into account two parameters:

– A difference in rate between the current rate of your loan and the renegotiated rate greater than 1%. (A difference of 0.6 to 0.7% can sometimes be enough for certain long loans of a large amount.)

– A low age of the loan in order to take maximum advantage of the rate differences on the interest due.

Finally, do not forget that the Lagarde law of July 2010 allows the borrower to take out loan insurance different from that offered by his lender. This will allow you to further reduce the cost of your loan insurance and add a few thousand USD in additional savings.

Our advice: in all cases, a loan repurchase broker will allow you to optimize the conditions of your transaction. The specialists at Spin Lender support you, for example, in setting up your file, they guide you towards the most advantageous loans, and facilitate all the steps to follow in order to successfully buy back loans. Perform a simulation

Small loans: an opportunity to turn your idea into reality

 

Let’s imagine the situation: since moving into your apartment two years ago, your goal has been to renovate another room and turn it into a workshop and guest room for friends and family visiting you. 18 months have passed and the other room has unfortunately become more of a storage room. Every time you put your head in through the room door, you remind yourself that you really should renovate the room this weekend. “Maybe next weekend,” sighs themselves.

A few days later, you receive an email from a close friend announcing that he will be in town for a week at the end of the month, and he wondered if it would be possible to be with you in your other room at that time. “Of course!” you reply to a friend, excited because you see your good friend for the first time in 12 months.

There is nothing better than a set deadline to encourage action!

Dream and it will come true

Dream and it will come true

You roll up your sleeves and step into another room and start making plans to fix the room. The first thing to do is buy a bookshelf to lift your precious book collection out of the boxes onto the shelves. You will also want to buy a stylish sofa for guests to sleep in, a separate wardrobe, a large and comfortable reading chair for Sundays and a few more pieces of furniture to give the room a final touch.

You stand in the doorway, squinting and almost seeing in front of your eyes how beautiful the room finally looks. You smile. Finally, the other room is functional and just like you always imagined. To do all this, especially in such a short time, you need a little help.

Grab your helping hand

Grab your helping hand

This is where small loans are the perfect help. Our microloans range from 30 to 2,000 dollars and loan repayment periods range from 2 months to 36 months. Unlike regular small loans, small loans are paid in monthly installments, which are usually spread evenly over the entire payment period, allowing you to adjust the loan repayments to your budget.

Thanks to our automatic credit score technology, we can provide a loan decision response in just a few minutes. You can complete the application online in just a few minutes – no paperwork or queuing. Our goal is to say “yes” when others say “no.” Our mission is to provide the best user interface and personal customer service for lending and offering credit products.

So how can we help you?