Struggling with a difficult end of the month, thinking about buying back credit? This operation can indeed allow you to restore the situation and get out of your financial worries. To obtain loan consolidation studies and find the best deals, the use of a credit buyout comparator is often advised. Most online credit organizations – if not all – also offer a simulation tool. This allows you to make comparisons very simply and very quickly.
Better understand the concept of debt restructuring
Before telling you all about the oh so useful tool that is the credit buyout comparator, let’s take the time to define the concept of credit consolidation. This financial technique allows the borrower to better support his credits. Concretely, all the loans are grouped into a single loan, the duration of which is extended and adjusted according to the borrower’s situation. Instead of paying several monthly payments, the latter then has only one monthly payment to pay. As the credit is rescheduled, the amount of it weighs less heavily in the budget. Ideally, this one-time loan will have a lower rate than old loans.
Depending on the nature of the loans to be bought back, the bank can offer two types of buy-back:
- the repurchase of real estate credit (consumer credit (s) + real estate credit (s)).
- the purchase of consumer credit (consumer loans only).
Credit buyback comparator: how does it work?
The credit buyback comparator is a free tool, without obligation and easy to use. You will first have to fill in a form, in which you will be asked, among other things, the amount of your debts and the total monthly repayment made under your credits. At the end of the questionnaire, if your situation allows you to make a credit consolidation, different offers will be offered to you.
Good to know: the use of a comparator does not exempt from that of a simulation tool
On the contrary, even! Insofar as a comparator cannot centralize all the offers to buy back credit, the use of a parallel simulation tool is highly recommended. You may well find even more advantageous offers.
What criteria should I use to compare credit consolidation offers?
Offers to buy back credit must be studied according to several parameters. These are in fact the same as for conventional credit. The annual effective annual rate (APR) is the main criterion to analyze since it takes into account all costs (nominal interest rate, application fees, insurance …). This rate therefore reflects the total amount of the loan.
Another point to note: the repayment period. To select the best offer, the comparison must be made over an identical repayment period. Because for the same duration, not all offers are created equal. When you make comparisons between the offers obtained via a credit buyback comparator and those offered through a simulation tool, make sure that they report to the same duration.
The type of rate also matters. With variable rate credit, you do not know the total amount of the loan in advance or even the amount of the monthly payments. However, the rate of the loans being subjected to strong variations (in less as in more), the prudence wants that one turns rather towards a loan with fixed rate.
Finally, if insurance is offered in credit consolidation offers, know that you are not obliged to accept it. If the bank makes it an award criterion, you are entitled to take out insurance with a competitor. Goal? Pay less!