The repurchase of credit is an option that allows you to gather and have all your other accounts (bank credits) under the name of a single account in a single bank. Indeed, this concept offers its followers various advantages. However, one should not forget that the disadvantages exist and should not be ignored. This article deals with these two points.
The advantages of credit repurchase :
If a person tends to do a credit repurchase it is because this option contains several advantages, among them there are:
- Simplification The first goal of a credit repurchase is to gather all your credits under a single contract and under a single account. This is considered as a simplification of the management of your different credits.
- Debt Credit repurchase allows you to lower your debt ratio. In addition to that, the repurchase of credit offers you the possibility of making savings because you have only one account which gathers the whole instead of having several distributed everywhere.
- Insurance Credit repurchase allows the reduction of the prices of insurances because you have only one credit so you need only one insurance which will cover the whole.
- Over-indebtedness Credit repurchase allows to foresee a situation of over-indebtedness and thus to avoid it by rearranging the situation in order to take advantage of it.
The disadvantages of the credit repurchase :
It is true that the advantages offered by the repurchase of credit are very interesting but it is necessary to take into account the disadvantages which exist before launching out in this kind of procedure and signing a contract. Here are some of them disadvantages of credit repurchase :
- The total cost Indeed, the repurchase of credit increases the total cost because the duration in which you refund your credits is lengthened, which makes that the price increases.
- The costs This is a "hidden" disadvantage because it is often included in the contract. However, your wallet feels it! There are therefore fees for early repayment (real estate loans and consumer loans with fairly high rates), fees for brokerage (the repurchase of credit can go up to 5 %), file fees (for the opening of the account), guarantee fees (in the case of a new loan following the mortgage of your property).
Before buying credit, try the simulation to know the costs and benefits
Buying back credit has many advantages when interest rates are low for housing. Many French people have taken the habit of renegotiating with their bank the real estate credit of the house to realize consequent savings.
In many aspects, the repurchase of credit remains an excellent operation which it is necessary, as a preliminary, to anticipate. Indeed, the credit simulation appears as a precautionary principle. This is why, opting for for example in ferrets to the credit simulation is a good thing. First, there is a personal guidance and a fair estimate of the credit reduction.
Next, for a quick simulationThe first submission via the simulator is free of charge. This gives the customer an initial indication of potential savings with a new credit.
If the first credit simulation offers real savings for a credit repurchase, it is better to start the negotiations as soon as possible. On the one hand, because the purchasing power available to the individual will be greater. Secondly, the monthly charge of the new credit allows you to better distribute your budget for other expenses.
Even if, it should not be forgotten that the repurchase of credit involves immediate expenses to be supported: expenses of file, expenses on the repurchase of credit by anticipation. In the immediate future, there will be consequences on this decision to buy back credit. This is why, the first step of the simulation remains a must to weigh the pros and cons.
Credit repurchase: patience before signing the new credit
The credit repurchase obtained with the simulator at Les Furets gives an indication of the savings made. However, you must take care to read the contract with the bank on the new credit to be contracted. Since additional fees will apply immediately. Thus, you have to ask yourself if the household is a winner in the short term.