The main causes of refusal to buy back credit


You have several credits in progress: auto financing of 22,000 dollars, a mortgage loan of 158,000 dollars and a personal loan granted for the renovation of your garden of 8,500 dollars for example. What are the causes of refusal of a credit buy-back?

You are having some administrative difficulties in managing three monthly repayments and you are wondering whether a repurchase of your credits to carry out a consolidation would not decrease the total amount of your monthly repayments.

What could be the main obstacles to carrying out these credit buy-backs?

 

What is credit repurchase?

credit repurchase?

The repurchase of credit aims – in a way – to operate a grouping of credit. In the example below, you have three separate monthly payments. By redeeming the three outstanding credit balances, you will have only one credit whose monthly payment will be far less important.

 

For what benefits?

debt problem

First, from an administrative point of view, you no longer have to think about paying your three premiums each month to different interlocutors. By the repurchase of credit, you have only one credit outstanding and a single contact.

Then, it is quite obvious that the cumulation of three distinct premiums led to much larger refunds than if you had only one credit in progress, even if the amount of this credit is more important.

 

The main causes of a bank’s refusal to buy back credit?

credit loans

  • You will undoubtedly find it difficult to obtain a loan repurchase if you are already in a situation of litigation, that is to say if you have not repaid your monthly payments on time. In this case, you will be registered with the National Bank of Belgium;
  • Your banker will analyze your debt ratio which should never exceed 35 to 40% of your monthly income;
  • Your banker will take into account your credit repayment history;
  • Your banker will analyze the quality of the guarantees offered to protect themselves in the event of default.
  • If you are married, both spouses must agree and sign the credit agreements.

Is there a breaking point, beyond which a debt is considered too large to be treated via the repurchase of credit? Yes. Because financial organizations want to protect themselves against the risk of non-payment, each establishment has its own limits which must not be exceeded.

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