Credit buy-back periods

The consolidation of credit leads to an extension of the repayment period, this duration is fixed according to the repayment capacity. Verena Tarrant takes stock of the different repayment periods.

Duration of assembly

The first period involved in the repurchase of credit is that linked to the arrangement: it is the period between the client’s request and the release of funds. This period can extend from 15 days (supporting documents provided upon request) to 3 months.

Why such a gap? The longer the borrower takes to provide their documents, the longer the duration. The pre-analysis does not require supporting documents but these documents are imperative for the analysis and the assembly of the file.

Example: the borrower must prepare his documents (1 week) then he must send the documents by courier, it takes 2 to 3 days for receipt (working days), if he forgets a document, this period becomes longer. In certain cases, the analyst in charge of the file is led to request additional documents during the analysis…

Repayment period

loan consolidation

The repayment tenure that is proposed in the new financing plan can vary from 12 months (1 year) to 420 months (35 years), it all depends on the type of credit repurchase and the situation of the client.

Duration (months)

Duration (Year)

Repurchase of mortgage

Purchase of consumer credit

12

1

 

YES

24

2

 

YES

36

3

 

YES

48

4

 

YES

60

5

YES

YES

72

6

YES

YES

84

7

YES

YES

96

8

YES

YES

108

9

YES

YES

120

10

YES

YES

132

11

YES

YES

144

12

YES

YES

156

13

YES

 

168

14

YES

 

180

15

YES

 

192

16

YES

 

204

17

YES

 

216

18

YES

 

228

19

YES

 

240

20

YES

 

252

21

YES

 

264

22

YES

 

276

23

YES

 

288

24

YES

 

300

25

YES

 

312

26

YES

 

324

27

YES

 

336

28

YES

 

348

29

YES

 

360

30

YES

 

372

31

YES

 

384

32

YES

 

396

33

YES

 

408

34

YES

 

420

35

YES

 

Duration of release of funds

loan consolidation

After acceptance of the credit redemption, there is a delay between the agreement and the release of funds. The client must return his loan offer to the bank, which releases the funds for the repayment of credits to former creditors.

The duration between the agreement and the release of funds can range from 2 days to 1 week. Once this stage has passed, the borrower reimburses his new monthly payment according to the schedule.

Cash loan or cash loan?

You will receive a loan and cash loan directly to the bank account of your choice. However, banks have greater requirements for borrowers.

Cash loan – minimum formalities and quick withdrawal of funds

cash

A cash loan is the right financial product if you need cash in the short term. This applies if, for example, the car has failed and there is not enough money to repair it. You can also take out a loan for your dream vacation or a small renovation of the apartment.

Non-bank institutions, in addition to the so-called payday loans, offer loans in installments. The repayment period usually does not exceed 3 years, although sporadically there are proposals with repayment up to 4 years.

The maximum amount you can receive is lower than when you apply for a cash loan. Many offers allow you to borrow USD 15,000, and the best offers do not exceed USD 20,000. The advantage is the limited amount of formalities.

Depending on the loan company, you must be at least 18 or 21 years old. Sometimes it is necessary to provide a scan of an income statement or other document, but in many cases, an income statement is enough.

Convenient cash loans without certificates and without verification in the Credit Information Bureau and the National Debt Register allow people with financial problems to take advantage of the offer.

To get cash loans as proof, simply complete the online application. However, you must meet the abovementioned age requirements and, if applicable, your earnings statement. Money can be paid out within a few minutes of the loan decision.

Cash loan – what is a private cash loan?

money

Not only non-bank institutions grant cash loans, but also individuals. It can be a family member or a stranger.

Private cash loans are contracts between two parties where one of them transfers money to the other and the one undertakes to repay them in accordance with the agreed conditions.

There is a lot of freedom in determining the terms of the contract, and thanks to this, a cash loan without certificates is available not only through non-bank institutions.

An individual may transfer cash to a private individual, but also to a company or organization. The principles of obligations towards private lenders are regulated by the Civil Code.

Cash loan agreement – what should it include?

Cash loan agreement - what should it include?

All cash loans require a contract to be concluded. A standard contract should include:

  • date and place of conclusion of the contract,
  • indication of parties to the contract,
  • indication of the subject of the contract,
  • conditions for repayment of the loan (interest, commissions, and other costs should be specified),
  • signatures of both parties.

Pay attention to the points listed when your choice is a cash loan at your home.

In addition, make sure you estimate the costs related to the arrival of the loan company employee to you, and if the collection of receivables will also take place at your address, check whether this involves additional fees.

In particular, this applies if the company representative did not find you at home when the appointment was arranged or arrived due to late repayment.

When the cash loan agreement is concluded online, which is the case for non-bank institutions, then the acceptance of the terms of the agreement consists, e.g., by clicking the appropriate button displayed on the monitor. For a cash loan without certificates to be not only fast but also trouble-free, pay attention to:

  • interest,
  • real cost
  • commission
  • costs related to late repayment,
  • any additional fees.

Minimal formalities make online cash loans available instantly, but remember not to make hasty decisions and check the terms of the contract. Note the same issues also when you take out a cash loan online.

Cheapest cash loan – ranking

Cheapest cash loan - ranking

If you want to know where to apply for a loan, look at the Sean Cole cash loan ranking.

According to the ranking of 10.10.2018, taking out a loan for USD 1,000 with a repayment period of 1 month is beneficial in many companies because they offer APY 0%, which means that repayment of the liability on time is not associated with any costs – you only pay USD 1,000

Plus loan is a company that offers a repayment period of up to 45 days. Other companies offer a repayment period with no additional costs up to 30 days, including:

If you’re interested in the cheapest cash loan at a different amount, check the Sean Cole cash loan calculator.

Online cash loan – comfort provided by banks

A quick cash loan is not always a satisfactory solution because of its costs and sometimes the insufficient maximum amount that you can apply for.

In such a situation, an online cash loan provided by the bank will be a convenient solution. Currently, banks allow you to apply online, but most of them still require at least one visit to their facility to sign the contract.

However, there are proposals for full online service – among the banks that offer such a solution are e.g. GBank and Good Finance.

To find a cheap cash loan, use the Sean Cole comparison tool. Banks provide more favorable repayment terms than non-bank institutions, so use their offer if you have creditworthiness.

Can I get an unsecured credit buy-back?

 

It is possible for a homeowner to obtain a loan repurchase without mortgage guarantee. Here is the advice from our experts.

Credit repurchase: without mortgage guarantee

Credit repurchase: without mortgage guarantee

 

A loan repurchase makes it possible to reduce its monthly payments, for the borrowers owners, it is very often asked to put the real estate in mortgage for guarantee the repayment of the debts.

The mortgage guarantee is a security for the lender to recover the loan amounts and it is a means for the borrower to benefit from advantageous conditions. Everyone is there. Simply, it is possible to obtain this same type of financing without mortgage guarantee.

Loan buy-back: nature of the loan

Loan buy-back: nature of the loan

 

It is enough to understand the legislation in force. There are two loan buyback operations: real estate and consumer. It is the share of real estate assets to be taken over which determines the nature of the financing:

  • more than 60% of mortgage loans = repurchase of mortgage loan
  • – 60% of mortgage loans = repurchase of consumer loan

For example, an owner has $ 100,000 of mortgage to buy and $ 20,000 of consumer loan to buy. In total this makes a loan repurchase of 120,000 dollars. The real estate share is 83% (100,000 dollars / 120,000 dollars X 100). The financing will be real estate.

Another example: an owner has 30,000 dollars in property loans and 50,000 dollars in consumer loans. In total, there are 80,000 dollars to match. The real estate share is 37.5% so the financing will be for consumption.

Obtaining credit repurchase without taking collateral

Obtaining credit repurchase without taking collateral

 

The mortgage guarantee is systematic when it is a buyout of mortgage but if it is a buyout of consumer loan, it is not automatic. It is possible to ask the lender for financing without taking collateral, a study will necessarily be necessary to determine the feasibility of the project and there is a good chance that the financing will be less attractive.

At this stage, an analysis is essential to obtain a personalized opinion and an estimate of the future monthly payment. It’s free and without obligation. Now is the time to obtain this loan.

Credit repurchase and mortgage quota: explanations

 

The mortgage ratio is one of the criteria studied when applying for a loan with mortgage guarantee, here is what you need to know.

Redemption of credits with mortgage and calculation of quota

Redemption of credits with mortgage and calculation of quota

 

A homeowner who feels they have too heavy monthly payments or who wants to rebalance their budget can use loan consolidation. If the household wishes to have their home loan taken over, the lenders will offer financing with mortgage guarantees.

That is to say, the bank will offer a new credit agreement with a longer duration, a single rate and a reduced monthly payment. For taking collateral, if a mortgage is already in place, the lender will then have it withdrawn and put one on the new loan.

Finally, the borrower can benefit during the operation from an amount allocated to a new project. All this must be the subject of a study including the verification of several criteria including the mortgage share.

The mortgage loan repurchase ratio

The mortgage loan repurchase ratio

 

The quota represents the sum equivalent to the value of the property. That is to say that on a property worth $ 200,000, the share of 100% represents a loan of $ 200,000. A share on this same property of 80% means that the amount loaned will be $ 160,000 (200,000 X 80%), and so on. Thus, the mortgage ratio represents the amount that the lender will be ready to grant.

In a grouping of loans, financial institutions will generally offer a share of 80% on average. That said, this percentage can be revised upwards or downwards depending on the lender and especially depending on the profile of the borrower.

However, the quota is based on the value of the property and the lenders sometimes verify with a real estate expert, either external, or attached directly to the bank. It is therefore essential to provide a property value close to that of the market to avoid any disillusionment during the transaction.

Simulate the repurchase of mortgage loans and know the share

Simulate the repurchase of mortgage loans and know the share

 

The simulator allows you to quickly know if a project is feasible, it is also an opportunity to take the temperature on the amount of the monthly payment as well as the share of the mortgage rate. Several credit institutions offer mortgage financing, so it will be easier to find a tailor-made offer at the best current conditions.