Renewable credit redemption.
Revolving credit, or revolving credit, is a consumer credit that offers advantages in terms of project financing. It may be worthwhile to include revolving credit in a credit repurchase transaction.
How revolving credit works
The revolving credit allows its holder to have as he wishes a sum of money. This flexibility is reflected in the fact that the underwriter of the loan does not need to justify his expenses, unlike the appropriations allocated. The amount of money available (the credit) is renewed with the reimbursements made.
Why integrate revolving credit with a credit repurchase?
If the main advantage of revolving credit is its flexibility, it has a disadvantage: its borrowing rate is high. Including revolving credit in a loan repurchase can be interesting from the point of view that one no longer wishes to use the flexibility of this credit and that one wishes to settle it at the same time as other loans or debts. The repurchase of credit then makes it possible to regroup all or part of its loans in only one, in order to reduce the amount of its monthly payments or to allow the realization of a project.
Revolving credit is fully eligible as part of a loan consolidation operation . We can also include any other consumer credit (work loan, LOA, car credit, personal loan …). You can also, in the context of a mortgage loan repurchase (the real estate share must represent 60% of the total amount), include your mortgage in the transaction. It is then the real estate rate within the framework of the repurchase of credit which is applied. We can also integrate debts in the consolidation operation: (delays in rent or taxes, unpaid invoices …).
By consolidating its loans, we then obtain a single credit to which a single rate is applied, with a single monthly payment to be reimbursed , of an amount lower than that of the previous receivables, all over a longer period. Month by month, there is therefore more to live.
Consolidating loans including revolving credit can also have the advantage of allowing a project in the event that the latter was hampered by the borrower’s debt ratio being too high, because the repurchase of credit also has the effect of lowering this debt ratio. We can also integrate additional cash to buy back credit to finance said project.
- Reduce monthly payments as much as possible or limit its duration?
- Total or partial buyout?
- How much will it cost to buy back credits?
- Redeemable credits
- Renewable credit redemption
- Renegotiate credit repurchase