Is the credit buyout still granted in times of crisis?
European banks are the most affected by this financial crisis which seems to be perpetuating. As a result, many individuals believe that they will no longer be able to accept a request to buy back credit. But on the contrary, to consolidate their finance, credit organizations do everything to attract customers. Among the means they implement, there is the relaxation of the conditions for subscribing to credit repurchase.
The repurchase of credits consists of regrouping all your current loans with only one financial institution, which replaces them by a new single loan. You therefore only have one monthly payment to pay, and thanks to an extension of the repayment period, you significantly reduce the amount of each installment. This increasingly common financial arrangement is also called grouping or consolidation of loans, or debt restructuring.
Some households who are in debt no longer believe they find other solutions to get out of it. Indeed, with the current financial context, it is difficult to hope for the acceptance of a request to buy back credit. Most consumers believe that the conditions have become unfavorable. But this is not the case. To the surprise of all, financial organizations and especially those specializing in the repurchase of credit become more generous. Reasonably, they must lower their production of loans and loan redemptions and then cancel interest rates because they are suffering from the crisis. However, they soften their conditions, which reassures all those wishing to reduce their debt ratio and improve their financial situation.
Conditions adapted to everyone’s wishes and situations
Before 2008, financial organizations focused their offers on a specific type of rate (fixed, revisable, capped). But today, they are becoming more and more open and allow customers to choose the type of rate that suits them. If before, the owner was required to put up an element of his real estate assets as a guarantee when buying back credit, for some time it has been possible to subscribe without guarantee if the borrower finds the offer more advantageous.
Credit agencies became less strict during the study of files. To accept or reject the request to buy back credit, they are no longer based on a single element but do an overall analysis of the files. They are doing everything possible so that everyone can subscribe to more suitable offers.