There is a credit repurchase transaction specially intended for tenants. Its objective: to simplify the management of its budget, to reduce its monthly payments but also to make new projects. Zoom on this operation and its advantages.
Why are we talking about buying back tenant loans?
Two categories of credit grouping are established according to the situation of the borrower. The distinction is made between owners and tenants. The first will mainly turn to a buyout of mortgage loans, including at least one mortgage to consolidate. While the repurchase of tenant credit only concerns consumer loans. The latter does not require a mortgage guarantee and is therefore particularly aimed at tenants, offering them a solution adapted to their situation. Advisers work with banks specializing in this type of loan buy-back to offer each tenant a tailor-made solution.
What can we integrate into the new loan?
If you are a tenant and want to reduce your monthly payments, you can buy back any outstanding loan. It can be consumer loans, such as a car loan. But also revolving credits, which are for example the credits associated with store cards of the large distribution. Be aware that this transaction can allow you to also include your debts, that is to say a bank overdraft or delayed rentals. All these credits and debts will be redeemed and you will have only one new loan to repay each month, at a fixed rate and renegotiated. It is even possible to add additional cash to the new loan.
However, you should know that the repurchase of consumer credit is capped. In general, its amount cannot exceed $ 100,000, and its duration will generally not exceed 144 months, or 12 years.
The benefits of buying back loans for tenants
First, consolidating your existing loans will allow you to decrease the amount of your repayment each month. Thus, you will have a new monthly payment adapted to your income. You will have more flexibility in the management of your budget and therefore more facilities to pay your rent and charges.
But that’s not all. Reducing your debt ratio is also beneficial in the long term. Indeed, if for example you plan to carry out new projects, the grouping of your current loans can unblock the situation. And if, your current debt ratio prevents you from becoming a homeowner, the repurchase of your credits can be a solution.