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.
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?
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?
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.