Redemption of credit: misconceptions
The repurchase of credit is a banking operation which is addressed to the people having contracted loans with the consumption or real estate with incomes more or less important. The repurchase of credit (RAC) allows to obtain a better financial comfort. It certainly increases the total amount of debt, but also allows a longer payment period with lower monthly payments for better budget comfort. It’s really a spread of debt, not a decrease.
Idea # 1: I will be forced to change banks
No, you can keep your usual bank account. The monthly installments of credits will be deducted from this account. The banking organizations managing the credit buy-backs do not function like traditional banks, they are not deposit banks, that’s why they do not ask the change of bank to agree to regroup your credits.
Idea # 2: The requested debt ratio is limited
Certainly to obtain a credit buyback the debt ratio is taken into account but not that: we also rely on the calculation of the rest to live. The criteria vary according to the banking institutions. We must therefore learn.
Idea # 3: Cash financing is limited
No, especially if this cash is allocated to a specific project. It is always possible to request additional cash which makes it possible to secure the credit buy-back operation by giving the borrower immediate savings in the event of a sudden blow or a large unforeseen or anticipated flow.
Idea # 4: We can not do RAC when we have already had payment incidents
No, some conditional banks can buy back credits when there have been payment incidents before. We must learn and Crédigo advisers are trained to accompany you throughout your steps.
Idea # 5: I can not do RAC alone if I’m in a relationship
It’s wrong. If you live in a common-law relationship, or even if you are married or pacsed under the separation of property regime, you can do this without your spouse being involved. But the debts subscribed to be grouped must absolutely be in your name. Your case may be more likely to succeed if your spouse is associated. Indeed, these incomes and its situation (employment, savings) will be taken into account. Learn more.
Idea # 6: I can not buy credit if I’m too old
Not especially if you own your property. The maximum age to access credit redemption is therefore around 75 years old. This limit actually adjusts according to the end of the loan. These thresholds are also reviewed according to different parameters: the duration of the credit, the amount bought back, the repayment capacity of the subscriber. Learn more.
Idea n ° 7: The repurchase of credit will harm me after
No, you will not be stuck at the Bank of France because the credit redemption is just one new credit to pay. It will also be possible to request other loans later. A repurchase of consumer credit can sometimes be able to then apply for a mortgage.
Idea n ° 8: I am going to ask for a mortgage on my property if I do a conso RAC
No, subject to age, this purchase of consumer credit can be done without a guarantee on real estate and therefore without mortgage. Learn more.
The repurchase of credit is a banking operation which is addressed to the people having contracted loans with the consumption or real estate with incomes more or less important. The repurchase of credit (RAC) allows obtaining better financial comfort. It certainly increases the total amount of debt, but also allows a longer payment period with lower monthly payments for better budget comfort. It’s really a spread of debt, not a decrease.