Can we buy back credit with another bank?

The grouping of loans can be set up by any financial organization, its setting up is done independently of its own bank.

Repurchase of loans elsewhere, in another bank

Repurchase of loans elsewhere, in another bank

The repurchase of credits is a banking operation which makes it possible to group several loans into only one, which involves an extension of the duration and a reduction of monthly payment. This financing does not force the borrower to change his direct debit and he is not obliged to ask his bank to obtain a reduction in his monthly payments.

Thus, the borrower is completely free to resort to the financial organization which it wishes to obtain the best offer of repurchase of credits, whether it is a bank, a banking intermediary or a credit institution directly.

Credit repurchase: bank, intermediary or credit institution?

Credit repurchase: bank, intermediary or credit institution?

Few borrowers know this, but there are indeed three types of structures allowing them to group their loans and therefore reduce their monthly payments :

  • The bank
  • The banking intermediary (or more often called a “broker”)
  • The credit institution

The bank

The bank is based on its own funds, it will define its commercial strategy and therefore propose or not the repurchase of credits. In some small agencies, clients will not find loan buy-back offers because advisers are not trained to offer this financing. In large agencies, they favor the best files and make a selection of requests.

The banking intermediary

The BIO or broker is a specialized body. Some only offer loan repurchase and have mandates with specialized credit institutions, which allows the borrower to benefit from the best offers without changing banks.

The more production the broker or intermediary achieves, the more attractive conditions and therefore advantageous offers for the borrower, it is a channel to be taken seriously because good solutions are possible.

Credit institutions

These structures are in fact subsidiaries of large banking networks only specialized in the financing of loan buy-back projects. Most do not deal with the client directly but study requests on a complete file, so you have to go through a broker or bank intermediary.

That said, we have seen in recent years that more and more establishments are opening their doors to borrowers, customer service may not be ideal but it is possible to save on costs.

Consolidate your loans: choose another bank

Consolidate your loans: choose another bank

The loan buyback simulator allows you to quickly find out if the loan buyback project is feasible. He will probe several financial organizations before offering a free estimate of the new reduced monthly payment. This process is completely free and without obligation. Just complete the form and validate it, the result is quick.

Cash loan: these questions you should ask yourself before you get into debt + print credit tree

Anticipating your questions: this is how I have repaid my loan in my life. Probably four years ago my laptop broke down (quite unexpectedly, he was only 5 years old: P), my basic work tool, and every day I had to buy new equipment.

I was fresh after university, I didn’t have any savings – a situation near the gate. I thought so then … Then it turned out that my grandmother could lend me the money. This business of life cost me an additional USD 500.

When taking a loan is the only way out

cash

However, I know that there are situations when taking a loan is the only way out: someone breaks the washing machine or fridge and there are no savings or someone who can borrow on interest-free installments. Yes, there are situations when taking a loan is a good decision.

However, if I read that 35 percent. society is considering taking credit for holidays and gifts, I will not say what I think about it as a courtesy. If for 12 months you didn’t manage to put aside a zloty for this purpose, will you be able to repay the loan for another 12?

Maybe just instead of gifts for USD 200, get yourself a gift for USD 20? Once and for all, change the “pawn and put yourself” principle to “I don’t have, I don’t buy” and make credit decisions wisely.

There is no urgent need, no credit

money

From my own experience (buying a laptop in installments) I know that we can regret it too quickly and ill-considered.

For 12 months, when I repaid installments for my equipment, I was stressed if I could dress the amount I needed on time, whether I would not forget or be late with the transfer … I felt very bad about it, so to develop self-restraint.

When making credit decisions, I wrote myself a set of questions that I always ask myself when I think I should take a loan. Here they are:

1. Is this money really necessary for me?

Necessity or whim? Admit that sometimes you think about buying a new phone for credit, although the one you have is doing very well. I also sometimes have such ideas, but I deal with them quickly and I advise you as well. If that’s why you’re going to the bank’s website now, then it’s better to shut down your computer quickly and go for a walk. Fresh air will do you good …

2. Maybe I can take an interest-free loan from a loved one?

Think about whether someone close can not give you the amount you need. I did not use this option when buying a laptop, and it cost me an additional USD 500. Needless to say, it would have been a lot of money for me, if it wasn’t so, I would have bought a laptop for cash. I don’t make that mistake anymore.

3. Will I be able to repay this loan?

The urgency is urgent, and none of your relatives can lend you money – this is a sub-gate situation. Remember, however, that even the most favorable loan will not solve your problem, if you are unable to pay back the installments incurred and you have to pay back at least 120 percent. what you borrowed. The bank will ask for money.

4. Maybe I can postpone the purchase and collect the money myself?

Maybe you can postpone your purchase and collect the amount you need? You have nothing to save from?

Maybe it’s time to reduce your expenses a bit, think about changing jobs or additional earnings? If anyone ever asked me such questions, I would have gilded him.

Credit Decision Tree

money

The above questions are credit must-have. To make it easier for you to make a wise and thought-out credit decision, I have prepared for you aboard with a credit decision tree.

You will find these questions there. I always use it when I think that I want to take a loan and I encourage you to do so. It’s best to print it and hang it in a visible place, e.g. on a corkboard or fridge.

However, if you have already reached the last question on my board, then probably taking a loan is the only right solution for you.

Just remember to carefully compare offers (comparison websites will be helpful), and then read the contract carefully before signing. If you have any doubts, ask a bank adviser or write to me. Good luck!

What is credit check?

All credit granting is preceded by a credit examination. The purpose of this is to analyze the solvency and the credibility of the interested loan taker. This will ensure that you are able to honor the chosen credit. Find out here how exactly granting credit works and how it protects your interests.

Part One: Credit Check

Part One: Credit Check

The purpose of the credit check is to determine whether the potential borrower is financially able to repay the credit. It is therefore not only of particular interest to know if the client earns enough each month, but also if he has, after spending on rent, food, taxes, car, etc., enough money to pay the monthly payments. The lender establishes, on the basis of information provided by the borrower, a personal monthly budget whose borrower confirms the accuracy of the different positions by his signature.

Part Two: Credibility Review

The purpose of the credibility test is to know whether the customer is likely to repay a loan. It aims to reduce the risk of payment default. In addition to certain risk factors, the customer’s payment behavior is also examined. In this context, credit institutions request information from the prosecution offices and other services such as the central credit information service (ZEK).

ZEK: the essential link

The Central Credit Information Service (ZEK) is an information service for the credit and leasing sector. It records information about the loan takers (e.g. name, date of birth, marital status), as well as information about people who have already applied for or obtained credit. Only member companies of the ZEK have access to this information. On www.zek.ch, under “Personal data”, you can check whether information about you is stored and what type of information it is.

What happens if I fail the credit test?

What happens if I fail the credit test?

If you fail the credit test, you will not be given the credit you want. This can protect you from possible over-indebtedness. Any credit refused is registered with the ZEK, and this information is accessible for two years to all affiliated credit institutions. However, all industry experts know that a credit check is a point in life. Your personal situation can change, as can your creditworthiness and credibility.