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?
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.
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.
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.