Before embarking on the repurchase of a credit, it is necessary to have in hand all the elements relating to this loan as well as to your finances. Borrowing capacity, monthly payment to be paid, duration of the credit, so many things that will directly impact the final cost of your credit. This is why online credit simulators were put in place. But to get the most out of this free tool, it’s best to understand its principles first.
What is the repurchase of credit?
When you have accumulated debts and you can no longer meet your deadlines, you can apply for a credit redemption. You therefore ask a new bank to pay all your credits for you in exchange for a loan with a single monthly payment from the latter.
In other words, you merge all your loans without distinction of type (consumer credit or mortgage) to have a brand new loan contract with a duration, a single rate and monthly payments adapted to your current financial realities. It’s as easy a process to follow as getting credit online .
When you sign up for this financial maneuver, the loan terms become more flexible and give you better visibility on the management of your finances. Especially with a single rate, a single monthly payment to pay and a single bank as interlocutor, this greatly facilitates your life and makes it possible to clean up your finances for sure.
How is a credit simulation useful?
The Credit Calculator is an online tool that allows you to study the risks and rewards of a credit offer with great precision. It is an action which does not commit you in any way and which moreover is completely free!
It is a tool that allows you to compete for offers. Indeed, the main objective is to find a selection of financial brands likely to meet your request and have a tailor-made offer with the best possible conditions. The credit simulation also gives you a basic reference to take into account for the negotiations according to your request.
To get the most out of this little program, you need to be as specific and sincere as possible. So do not lie about the figures you have to fill in at the risk of completely distorting the simulation. By going through the simulation box, you are able to know your debt capacity.
What data does the simulation of a loan repurchase need?
To be effective, the simulator needs your full cooperation. You must therefore provide the exact sum of your income, the total cost of the charges as well as the monthly payments you are currently paying.
This is where you can anticipate the new monthly payment that will correspond to your new loan. Also, the calculation you have just made will give you a precise idea of your purchasing power. But how ? It’s very simple. To define your situation, the simulator is based on the income and expense indices. Once all the fields are correctly filled with the correct information, you get your current debt ratio.
Financially, you are in a situation of over-indebtedness when your debts exceed 33% of your monthly income. And to remedy this, the repurchase of credit is an effective and easy solution to set up. Build a solid case, submit your application and negotiate the loan terms. But before all that, use and abuse the credit calculator to find the bank that is ready to give you the best loan terms.