What are the criteria for a credit surrender?

The repurchase of credit is characterized by obtaining a new loan that replaces a pre-existing credit with new conditions. To claim some conditions are necessary. Explanations below.

Consumer credit purchase: the main conditions

The situation of a household determines the conditions for obtaining a purchase of consumer credit in the same constraints as a conventional credit conso. First, this operation is characterized by the existence of a property in the process of repayment and generally aims to extend the repayment period it can not exceed the limit of 35 years.

To become eligible for this banking operation, the household situation is not left behind since they must prove their financial capacity to repay with a financial history without anomaly. To do the banking at the Francia bank excluded the applicants as the incidents on the joint account. The best asset for claiming this financial mechanism is to prove that the household has stable incomes like a permanent contract or an official’s status. The level of debt is largely to become eligible for credit consolidation, so a level below 33% seems the best solution.

Who is involved in the loan redemption

There are several situations that motivate homeowners to buy back credit, such as floating-rate or variable-rate credit agreements, which may overvalue market conditions (if rates go up).

Financing can evolve at the initiative of the borrower but also its ability to repay. For example, if developments in the Durilor rate tend to fall, it is possible to obtain more advantageous conditions such as reduced monthly payments. During this operation the borrowers have a good opportunity to exercise a rescheduling of the duration of their loan hitherto impossible in a renegotiation.

Should we call on a banking intermediary?

Several professionals intervene to carry out a credit repurchase transaction. Between brokers or sole agents, it is difficult to make the right choice. What is important to remember is that these specialists in banking intermediation bring a considerable saving of time for the borrower. Indeed, hunt for the bank to get the best deal takes time and preparation. It is not uncommon to take days off to renegotiate a credit.

In addition, the agent has an expertise but also an experience that strengthens his advice. Borrowers can be reassured by a particularly protective legal framework. Does not become an agent who wants because this profession requires certification at ORIAS (register of intermediaries in insurance, banking and finance).


The termination of a credit conso

Whether for the purchase of a car, work in a house, or an expensive personal project, such as the organization of a wedding for example, banks are constantly solicited for loans in the form of consumer credit or credit termination following an unforeseen event.
Many financial institutions in France thus offer this type of credit at rates sometimes unbeatable. However, if it is relatively easy to get this type of contract with your bank, what about when it comes to terminating it? In the event of an unforeseen event, is it possible for an individual to cancel his consumer credit? And if so, how? This is what we will see in this article.

The different types of consumer credit

The different types of consumer credit

Consumer credit can come in four different forms where the terms of borrowing, with or without the ability to terminate, vary.

The assigned loan

First, there is the loan allocated to a given expense. Although it requires the consumer to define beforehand the expense for which it makes its loan, its termination is very simple since the obligations vis-à-vis the bank appear only on acquisition of the property. Canceling the purchase decision cancels the credit.

The personal loan

On the other hand, there is the personal loan. Opposed to the principle of the loan allocated, it is not necessary to define the purchase that one wishes to make thanks to this credit. To cancel, it is therefore necessary to make an early repayment of credit, which can sometimes be done without payment of compensation, or to send a letter of withdrawal within 14 working days of acceptance of the offer as provided by the so-called Lagarde Law of 1 July 2010.

Personal standing credit

It is also possible to opt for a permanent personal credit. The latter consists in making available, usually for a year, a sum of money to an individual. The latter can use it as and when repayment. This consumer credit is subject to the Scrivener law, which allows the borrower to prepay the credit without additional fees or penalties, regardless of when the refund decision is made. In addition, as for the personal loan, the Lagarde law applies and the deadline of 14 working days for a decision of retraction is preserved.

Subscribe to a credit from home

Subscribe to a credit from home

Finally, thanks to the development of new technologies, it has been possible for almost 20 years now to subscribe to consumer credit online. Simpler, faster, more adapted, these loans have quickly multiplied on the web. The same terms and conditions imposed by the Lagarde law apply to this type of loan.
Finally, it has become relatively easy to terminate a consumer credit since the 2010 law which increased the withdrawal period from 7 to 14 days. However, it must be remembered that depending on the type of consumer credit chosen, the prepayment process may incur additional fees, or is simply not possible.

All you need to know about credit redemption – Debt consolidation

Credit redemption consists of consolidating several outstanding loans into one. It is therefore used to repay once a month his monthly payments. It can be granted by a bank or a financial institution. More concretely, the repurchase of credit allows the borrower to spread out his debt over a longer period, and thus to reduce his monthly payments.

The repurchase of credit is for everyone: tenants, owners, employees or officials. On the other hand, most of the time it is possible to get out of a critical financial situation. It also prevents us from being stuck in the Francia bank as a banking prohibition.

In which cases can one subscribe to a repurchase of credit?

In which cases can one subscribe to a repurchase of credit?

The repurchase of credit has many advantages for the borrower. Not only does it make it possible to reduce monthly repayments thanks to the lengthening of the repayment period, but it also makes it possible to lower the interest rates of all the cumulated loans. In addition, by repaying only one amount per month, the borrower receives a much clearer follow-up and will have only one bank or financial institution referent.

Thus, this operation can be particularly interesting for households that have difficulty repaying their various credits.

Redemption of mortgage

Redemption of mortgage

This operation can be particularly advantageous when the interest rates of mortgages are at their lowest. When the interest rate charged is lower than that of the real estate credit contracted, the borrower can then reduce the term of the loan by paying lower interest rates.

The borrower can also subscribe to the repurchase of mortgage to reduce the amount of his monthly payments ; in this case, for the operation to be interesting, the new interest rate must be:

  • At least one point lower than the initial interest rate if the borrower is in the first third of the repayment;
  • And 2 points when the borrower has exceeded 2/3 of his credit repayment.

The duration of the repayment of the new monthly payments must be between 5 and 30 years.

Auto loan buyback

Auto loan buyback

The purchase of car loans may concern a new or used car. It can be purchased from a car dealer, a bank, or a financial institution specialized in car loans.

This repurchase of credit has the same terms as a global loan redemption, and allows the borrower to have a clarified follow-up of his monthly loan payments. Indeed, he will have to repay only one monthly payment, regrouping all his loans. In addition, his monthly payments are lower than the sum of previous monthly payments, as long as the borrowing period is lengthened.

Finally, a special case for auto loan repurchase: If the borrower is the victim of theft of his car, or deterioration, the amount reimbursed by the insurer can come to participate in the repayment of the loan.

Buyback of consumer credit

Buyback of consumer credit

The purchase of consumer credit includes the purchase of auto credit, but also revolving credit or affected, or even personal credit (no project required). This concerns all types of consumer credit.

For example, this may concern a household with a car credit of $ 300 over 5 years, at the same time as a credit subscribed to pay a sofa at $ 200 over one year and another for a trip to $ 100 out of 2 years. The borrower can then request, as he wishes, to regroup the 3 credits, or only two of them.

The financial institution dealing with the repurchase of the credits then redeems all the credits to the banks or credit organizations where the credit agreements will have been subscribed beforehand.

Generally, the overall rate after credit redemption is about 3 times lower than the rates charged for revolving credits. Holders of this type of loan will therefore look with more interest towards the repurchase of credit. Indeed, due to the risk taking of lenders, there is a generally higher rate for revolving credit.

Buyout credit overindebtedness

Buyout credit overindebtedness

In case of difficulty of repayment, it is possible to make a request for redemption credit overindebtedness with the Commission of Over-indebtedness. This step comes after requesting a redemption of credit that would not have been accepted.

It is then the Francia bank that proposes a solution to avoid over-indebtedness. This procedure is free for the borrower.

How to make a credit redemption?

How to make a credit redemption?

To perform such an operation, it is recommended to use the online comparators, in order to find the best offer. The borrower can also turn to his bank, but he will not be assured of having the best interest rates for his credit redemption. Indeed, there are many organizations that can offer credit buybacks, with different terms and fees. Interest rates are in any case not fixed and left to the will of the bank.

It is also possible to go through a specialized broker, but there will be more fees.

Whatever the organization used, it is essential to submit the following supporting documents:

  • Civil status of the borrower
  • Income (last 3 payslips, employment contract, tax notice, etc.)
  • The charges
  • The debt ratio (must not be greater than 33%)
  • Real estate assets and the act of purchase if the borrower owns

Indeed, even if it is a repurchase of credit, the financial organizations study just as much the solvency of the borrower; the risks remain significant and even if the debt is repaid over a longer period, and therefore a smaller amount monthly. This operation remains a committed credit. The bank and the borrower must check the repayment capabilities before committing; this applies to credits as much as to credit redemptions.

The negatives concerning the repurchase of credit

The negatives concerning the repurchase of credit

Additional fees

The credit buyback has many advantages mentioned above. But, the borrower must also take into account other factors that may result in high costs such as:

  • Credit insurance if it is compulsory (ADI: death insurance disability, very often imposed by the banks because it covers the guarantees death, disability and temporary incapacity for work).
  • Bank or broker fees.
  • The bank guarantee if it exists.

In addition, at the end of the repayment period, the final amount reimbursed will be greater than the initial amount, because of the length of the monthly payments.

For example, if the borrower makes a loan of $ 30,000 at a rate of 7.6%, it will cost $ 2280 over 10 years and $ 3420 over 15 years, which can be a significant difference at the end. the repayment term of the loan.

The borrower must choose between a variable rate and a fixed rate.

  • Fixed rate: Same monthly payments but does not benefit from a possible fall in interest rates. The rate is higher than the variable rate. It may be worthwhile to redeem credit when interest rates are particularly low.
  • Variable rate: The monthly payments are then uncertain, and can decrease as much as increase according to the fluctuation. The borrower can therefore end up with a final amount well above the one he had planned.

Other negative points

  • It’s almost impossible to take out a credit buyout after 75 years
  • A mandatory health questionnaire will have to be informed. It will be useful to know if you need other insurance, or even to increase or decrease the contributions and the duration of the repayment.
  • Finally, a credit redemption can take time. We must therefore anticipate a potential problem of repayment so that the borrower is not caught off guard.

It would be unwise to find oneself already in a situation of debt distress during the constitution of one’s repurchase of credit.

Conclusion on the repurchase of credit

Conclusion on the repurchase of credit

Generally, it is easier to buy back your loan, than to validate your first loan. And this, whatever the field (consumption, real estate or auto). Indeed, the fact of having taken out a first loan shows that a financial institution has already trusted the borrower. He has already studied his solvency.

However, it is necessary to highlight the strengths of his file so that the transaction is accepted. This concerns:

  • Bank records
  • Income
  • The amount of savings

Indeed, a credit buyback usually denotes a financial problem to repay all its loans.

To avoid subscribing to a credit redemption:

  • Study each credit application in detail
  • Study the rates of each proposal
  • Feel free to play the competition regarding the monthly payments in order to benefit from all the possible advantages

Understanding fast consumer credit

A fast consumption credit, also called consumer credit without proof, can be contracted by the vast majority of banks and specialized financial institutions in this field. Uncomfortable, he speaks to everyone.

What is a fast consumption credit?

What is a fast consumption credit?

This type of credit does not require a defined project; thus, no proof of purchase or proof of any project is necessary. It can be used to finance a personal project, the acquisition of a property, the financing of an event, studies or a bank deficit. In addition, it can also finance work on real estate, unlike most other consumer loans,

This type of credit can not exceed 75 000 $. That said, it is often capped at around $ 21,000.

However, the speed of execution of the loan application does not exempt the borrower from proof of his solvency.

The conditions for obtaining a fast consumption credit

The conditions for obtaining a fast consumption credit

The demand for a consumer credit can be done online, and the lender can respond favorably in a few days. However, although the solvency evidence was not given at the time of the request, the banks request bank account receipts at the time of finalization of the credit.

Like any consumer credit application, it is therefore necessary to prove its solvency to the lender. After an agreement in principle, the financial institutions are entitled to ask the borrower his payslips, to avoid over-indebtedness.

This is why, in addition to bank statements and payslips, it is also necessary to monitor that its debt ratio ((monthly installments of credit and fixed charges) / incomes) x100) does not exceed 33%.

Similarly, people stuck at the Banque de France will find themselves almost unable to subscribe to a fast consumer credit, in the long term.

What are the benefits of fast consumer credit?

What are the benefits of fast consumer credit?

This type of credit is usually found in most banks, and online. To find the best offer, it is possible to make very fast simulations on the internet to compare different and many organizations. The use of these comparators is completely free and allows to subscribe to the most interesting offer.

The main advantage of this credit lies in its speed: it is possible to obtain credit in less than 48 hours, which can be reassuring for a person in need of funds quickly.

Many banks also highlight the speed of sending the loan amount. The borrower can then use it immediately.


Some financial institutions present quick consumer credit as a convenient offer for any need for cash almost immediately. However, you must check with the credit comparators to find the best deal. Indeed, despite a communication focused on the “express money loan”, it is a credit, binding and to be repaid. In order to benefit from the best credit rates, do not hesitate to contact several financial institutions to compete.

How to make a credit redemption. How to compare credit buy offers.

The rates you will pay…

The rates you will pay...

It’s the jungle! You will have to really compare and detail the offers before making your choice… Especially that the types of loans offered are different depending on the institutions.
On average, the rates recorded vary between 6,80% and 9,90%!
Comparative credit surrender rates.

Two main types of credits

Two main types of credits

Mortgages, which are offered to real estate owners. In this case, you obtain a credit to buy back your loans against the mortgage of your house or apartment. The formula is tempting… but generally expensive: the rates are increased by a commission of the intermediary, a taking of mortgage and expenses of file. Credit terms are quite long: up to 30 years… This credit is very engaging and often requires to completely change the way of life…
How to make a mortgage purchase…

Personal loans are offered to homeowners and tenants. The credit obtained allows you to buy all of your consumer loans, but not real estate loans. The rate is lower because there are rarely fees (you can negotiate!). Credit terms are also shorter: up to 10 years.
Redemption of credit for tenants.

Two kinds of institution

Two kinds of institution


They flourish on the Internet, in your mailbox or in free newspapers. These are agencies that transmit your credit application to banks or financial institutions. Of course, they take a commission that increases the cost of credit because it is you who pay! This commission is most often included in the cost of credit.
As a genius, these small companies offer you a mortgage loan (less risky for the bank) and more interest generator. This is normal: credit terms are longer!

Financial institutions and banks

Here it’s more serious… you have to go directly to a recognized institution with a bank status. No commission on personal loans, or it is integrated into the APRC, no bad surprise. This type of offer is also available on the Internet, but with less aggressive ads.

What you need to know about consumer credit without proof


You may have already crossed the term “unsupported consumer credit” in your bank’s loan proposals, without really knowing what’s behind it. Consumer credit without proof is in fact a practical and quick financial solution for unforeseen circumstances, small projects or urgent financing needs

What is credit without proof?

What is credit without proof?

This type of loan is part of the family of consumer loans, while being particularly flexible. Its main advantage comes from its lack of justification: the borrower does not need to explain the use he will make money. This credit is also called personal loan, as opposed to the assigned loan which requires him to provide a quote or invoices to justify the request for funding. Often used when carrying out small projects or purchases (work, appliances, permits …), it also helps to overcome hard and unforeseen difficulties, easily meeting the financing needs.

The characteristics of this credit

The characteristics of this credit

As for the amount granted, a consumer credit without proof can go up to 75 000 $: it is however often capped at 21 300 $. The duration of this personal loan can be in months or years, but rarely exceeds 6 years, making it a practical solution that is not viable for long-term projects. The operation of the repayment of funds is similar to that of most loans: the borrower returns the money by monthly, quarterly or any other frequency chosen in agreement with his bank. The loan rate is often quite high because of the risk taken by the banks, but remains fixed and guaranteed throughout the contract. Be careful, the borrower must still be an administrative file: without proof does not mean anonymous!

Enter a loan without proof

Enter a loan without proof

One of the advantages of this loan is the speed of execution: the borrower receives the funds in a few days only when his file is validated. Note, however, that it can not be accepted in case of over-indebtedness or filings at the Banque de France. Most banks offer this type of credit, just make a simulation online or go directly to the agency. To be certain of obtaining the most advantageous loan, do not hesitate to use comparators of credits which will guarantee you the best possible rate! Be wary of offers that are too appealing or do not require proof of identity, home or income. Now that you know everything about consumer credit without proof, remember that this solution remains a loan that commits you: be careful not to contract one on a whim!