The repurchase of credit makes it possible to reduce its monthly payments by regrouping several credits but it also makes it possible to finance a new project. Many files are filed with a request for cash to be included in the amount of the repurchase of credits, here is how this financing is put in place.
Cash and credit redemption
The purchase of credits is an operation to consolidate several loans into one, a financing facilitating the reduction of monthly payments and the lengthening of the repayment period. Simply, banks offer private and professional applicants if they want to add an amount dedicated to a new project, what some call cash. It is an amount that is added to the remaining capital due to finance a new project and avoid subscribing a new credit thereafter.
The term of cash is rather adapted to the professionals in the frame of their activity, it is simply a sum available to face the expenses and in particular the unforeseen. This term was subsequently deported to individuals but may have an unhealthy connotation since it suggests that the sum is free and easy to obtain. We are talking about a new project to finance and especially to justify, by a quote or a purchase order ideally.
How to get extra money with the credit redemption?
When a borrower files an application to buy back credit, he will have to specify the complete list of his credits including certain loans that he wishes to preserve. At the time of this request, all the forms of banks and credit institutions ask if the borrower wants to add an additional amount, this allows to finance for example work, a trip, the studies of a child or the purchase of ‘a car.
The interest of asking for this sum at the time of the simulation is to be able to study the feasibility of the repurchase of loans taking into account this additional amount, this makes it possible to inform more quickly the borrower of the possibility of financing his project and especially of be able to modify the amount, or even withdraw it in the event of an unfavorable response. It is important for the bank to verify that this amount is compatible with the capacity of the borrower and that it will avoid a possible imbalance in the coming weeks.
Simulate the redemption of credit with cash
It is easy nowadays to obtain estimates of buyback of loans with or without cash, online simulators allow to quickly obtain a feasibility notice and to be able to observe the rates practiced within the different credit institutions. Whether it’s consumer loans and / or home loans to buy back, the simulator allows both tenant and homeowner borrowers to get an adjusted and accurate estimate of their proposed credit buyback.
Regarding the amount to be added, several proposals will be made to the borrower to allow him to better project regarding the duration to be reimbursed and the reduced monthly payment. Finally, like any simulator, it is important to know that this approach is completely free and that no amount can be claimed at this stage of the application.