Loan consolidation, credit repurchase – definition

Credit consolidation: definition

Credit consolidation: definition

Credit consolidation gives you the opportunity to consolidate all of your loans into one credit. deborahjmiller.com has more information

Contrary to what many people think, credit consolidation is exactly the same type of loan as a personal loan.

The consumer credit law of June 12, 1991 regulates this type of credit. It is an integral part of the installment loan family.

Do you have to repay all your credits?

Do you have to repay all your credits?

Of course not!

You must examine the APR of each loan that you wish to group. In this way, you will be able to define whether or not a loan is worth integrating into your credit union.

Let’s take an example!

If the APR of your new car loan is 0.89%, do you think it would be worthwhile to refinance it at a rate of 5.95%? Of course not!

You should use credit consolidation sparingly! Do not rush and think carefully before you start your process.

Credit consolidation: your benefits

Credit consolidation: your benefits

  • You only pay to one credit agency
  • Your new monthly payment is lower than the different monthly payments of your old credits
  • You can even lower your APR in some cases
  • You recover liquidity if necessary for other projects
  • Your purchasing power increases

There are disadvantages!

There are disadvantages!

  • You increase the repayment tenure
  • Your new APR is often higher than your previous APR
  • You pay off more interest

Credit consolidation will very rarely earn you money.

Fees to be Payed During a Credit Consolidation

Fees to be Payed During a Credit Consolidation

When you combine your credits, an indemnity is due to the company which undergoes a premature repayment of the credit or credits that it granted to you.

What should you reimburse?

You only have to reimburse the balance outstanding balance calculated at the time you wish to carry out the transaction. All of the interest that you would have had to pay if you went through with the credit is lost by the company.

Closing costs during a credit consolidation

  • 1.00% on the part prepaid in principal if the period between the prepayment and the date of termination of the contract is more than 12 months
  • 0.50% on the part prepaid in principal if the period between the prepayment and the date of termination of the contract is less than 12 months

Procedure for submitting a credit consolidation request

Procedure for submitting a credit consolidation request

  1. You compare the different credit offers available on our comparator
  2. You click on “REQUEST AN OFFER” and you go to the site of the chosen partner
  3. Once on the partner’s site, you perform a new simulation
  4. You send your request for offer
  5. The financial institution examines your credit request
  6. 2 possibilities: agreement or refusal
  7. In case of refusal, you will receive an email within 48 hours to notify you of the refusal
  8. If agreed, you receive your contract
  9. You sign it and return it to the lender
  10. The credit company reimburses your credits
  11. You receive the remaining liquidity within 48 hours (if there is liquidity)

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