The operation consists in quickly buying back by a third-party lender all the credits in progress to merge them into a single loan (what is called the repurchase of credit). While the repayment term can be extended, the subscriber benefits from a reduction in his repayment monthly payments. Thus, he can respect his claims urgently without risking falling into a negative spiral leading to a situation of over-indebtedness.
What are the specifics of an urgent credit buyout without supporting documents compared to a traditional loan grouping? What mistakes should not be made and what conditions should be respected? Follow the guide to find the best urgent credit buyout offer for your situation!
The emergency credit buy-back: how does it work?
The search for urgent credit buyback involves contacting one of the following actors:
- the lending institution with which the borrower has taken out most of the loans it wishes to consolidate. We then speak rather of renegotiating credit in an emergency: the bank can only renegotiate a mortgage loan, but it can buy consumer credit.
- a third party lender competing with the previous one which can make an offer to buy back an urgent loan;
- an establishment specializing in the repurchase of mortgage loans or the repurchase of consumer loans;
- an intermediary such as a broker who is an expert in fast online credit redemption or collaborating within a network of brokerage agencies and making available on his website a credit redemption simulator;
- a local organization specializing in helping and supporting people facing a situation of over-indebtedness.
Urgent loan buy-back: for what reasons?
Loss of employment, divorce, imperative housing work, health costs: there are many cases that require an urgent financial contribution to meet your expenses but also the maturities of credits in progress to be reimbursed.
Faced with a drying up of cash inflows or a sudden increase in fees to be paid (or even both!), The emergency credit buy-back remains a solution to consider. The reasons for using emergency loan redemption are many and varied.
How to obtain an urgent credit buy-back?
In order to get a loan buyout quickly, it is necessary to follow a number of steps. These allow the borrower to optimize his journey and thus respond urgently to the situation in which he finds himself. How to request an emergency credit buy-back?
- Prepare the elements relating to the loan: copies of the mortgage or consumer loan contracts as well as the associated amortization tables should be made. At this stage, it may also be interesting to carry out online simulations in order to check the viability of a loan buyback operation.
- Prepare a complete file: in order to maximize their chances of obtaining a loan repurchase at the best conditions, borrowers can provide proof of income (salary slips, tax notice), charges (receipt of rent, tables of depreciation) and assets (property tax, copy of bank statements, etc.).
- Request the intervention of a bank or a specialized organization via a physical appointment, a telephone interview or a contact directly on the internet. This last option makes the procedure more fluid and saves precious time.
- After studying the file, the financial organization gives an answer in principle, establishes a financing proposal and builds up the credit file.
- Once the file is validated, the borrowers receive the loan offer.
- In the case of a home loan, borrowers must wait an incompressible period of 10 days before returning the offer. For a consumer loan, this period is 14 days. It is however possible to give it up in order to gain speed.
- The funds are then released by the lender who repays the credits by following.
What are the recommendations to follow to make an urgent loan buy-back?
It is not always easy to trust your interlocutor. Finding a quality organization to buy back credits without supporting documents means taking into account several criteria, including:
- commercial offers made;
- the proposed Emergency Credit Redemption borrowing rates;
- the cost of application fees;
- the nature and cost of the guarantees required;
- the overall cost of the new loan granted;
- the flexibility of the new loan taken out, in particular the fact that you can adjust your monthly payments or postpone them;
- the possibly borrowable amount;
- the length of the repayment period and the loan termination age;
- the reputation of the lender;
- any promotional bonuses and other welcome bonuses.
Urgent or not, the repurchase of credit requires a reflection. Merely the criteria of loan rate and amount of monthly payments are not enough to make the best choice. The subscriber must first observe and compare the interest rate applied and the overall cost of the credit (including the various costs inherent in the consolidation of credits).
For this, it is recommended to rely on the TEG (annual overall rate), which is an excellent basis for comparison between several credit offers. In fact, it takes into account all of the fees, and not just the interest rate.
Be careful, in a rush, borrowers tend to want to solicit many specialized financial organizations. They imagine that they can speed up the process and be able to make offers more quickly. This is counterproductive. Why ? Because the banks can be given the same file by several intermediaries.
The financial institution deduces the urgency of the file to be processed. However, the urgency and appreciation of errors generally do not mix. This situation is a source of confusion, likely to lead to urgent credit buy-back offers ill-suited to the situation of the subscriber.
The ideal remains to avoid taking out a credit buy back in an emergency, and to give yourself enough time to prepare your supporting documents before committing.
How to shorten the deadlines for granting urgent credit buy-back?
The accelerated credit buy-back procedure must follow the classic steps of a classic loan buy-back. The lending organization studies the feasibility of the operation, then makes an offer if necessary.
The borrower has a compulsory reflection period of 10 days before signing the offer if the loan buy-back is made by a mortgage, and a withdrawal period of 14 days once the offer is signed. it is done through consumer credit. In fact, the release of funds only takes place when the withdrawal period ends.
The saving of time cannot therefore be carried out on this part. On the other hand, the preparation of the file and the choice of the right interlocutor are the two fundamental criteria making it possible to obtain an urgent repurchase of credits.
How to make an urgent and rapid loan buy-back to avoid default?
A person whose debt ratio soars is no longer able in the long term to meet the repayment deadlines. This is the runaway and the long descent to over-indebtedness. The fact of not being able to honor its debts also causes it to be entered in the File of incidents of repayment of loans to individuals (FICP).
How do you end up at the Best Bank? In case:
- non-payment of two consecutive monthly payments;
- overdue situation for more than 60 days in the case of a repayment by non-monthly installment;
- abuse of authorized bank overdraft following a formal notice from the bank in the event of non-regularization of the situation within 60 days for an amount equal to or greater than 500 $;
- non-reimbursement of the capital remaining due after formal notice to pay the creditor.
If the individual does not regularize the situation within 30 days, their registration with the FICP is effective. The filing lasts a maximum of 5 years, during which time any urgent credit buy-back appears complicated to obtain. To obtain his cancellation from the FICP, the individual must regularize all his payments.
Good to know: in the event of over-indebtedness, the borrower is automatically registered with the FICP.
Given the consequences of being filed with the FICP and the deadlines for granting an urgent loan buy-back, it is essential to anticipate a negative development in its financial situation. As soon as a personal budgetary deterioration is felt, the option of restructuring their credit charges should be considered. The urgent repurchase of credit has the advantage of reducing monthly payments by lengthening the duration of repayment, in fact removing the danger of conceding payment incidents.
In addition, the fact of grouping its loans (mortgage, consumer loans, bank debts) in a single loan brings more readability and transparency. It is by having clear ideas that the subscriber can restore the situation more effectively.
Finally, the emergency loan buy-back can include a reserve of money to finance a personal project such as the purchase of a vehicle so practical in the context of looking for a job or to undertake urgent work in its accommodation. This cash flow is a real breath of fresh air, provided, however, that the debt ratio is respected after the urgent credit buyback operation, the theoretical threshold of which is set at 33%.
Can I buy emergency credits online?
Yes, credit redemption is faster online even if the procedure remains strictly governed by the Consumer Code. In reality, these platforms do not carry out urgent credit redemption but simply make the funds available to the borrower. The funds are then used to honor the maturities of the outstanding credits pending the formalization of the real urgent credit buy-back.
The reflection and withdrawal periods (see above) are the same for a loan buyback contract concluded with an online bank.
Online credit players also offer an almost instant response in principle, while a bank’s response time is on average 48 hours. Finally, the borrower must wait 7 days to sign and return the commercial offer proposed by a bank, then wait for the final agreement and the release of funds.
In comparison, the online response for direct credit can be picked up within 24 hours after receiving the file, the funds of the urgent credit can therefore be released a week after the agreement.
Good to know: the speed with which funds are released is not taken into account in the calculation of the rate applied for an urgent credit buy-back.
Frequently Asked Questions
Urgent credit redemption without proof: is it possible?
Online banks rely on the dematerialization of the online credit application process much faster and the legal minimum in terms of supporting documents. The time saving compared to an exchange with a traditional financial institution is obvious, although the degree of commitment is not the same.
Buying back credits without supporting documents does not mean that the file must be botched. On the contrary, a complete file passes more quickly in commission within the lending organization. Incomplete, the file returns to the stack pending the delivery of all supporting documents. Remember that the file is used to assess or even prove the creditworthiness of the applicant.
Without being exhaustive, the supporting documents necessary for a rapid credit repurchase are the following:
- an identity document (valid national identity card or passport);
- documents related to the place of residence (invoices dated less than 3 months);
- documents relating to the family situation (marriage contract, divorce certificate, etc.) or property (property tax);
- documents showing the income of the borrower or the household (salary slips, tax advice, certificate of social assistance, retirement pensions, unemployment benefits, rental income, etc.);
- documents notifying the banking situation (bank statements, amortization table for outstanding loans, financial guarantees, etc.).
Can I make an emergency loan buy-back if I am prohibited from banking?
A banking ban, or “IB”, is to be distinguished from a FICP file, as described above. Indeed, the banking ban is recorded in another file, called the FCC: Central File of Unpaid Checks. Such filing appears in the event of bounced checks or improper use of a bank card. Without regularization in the meantime, it is registered for a maximum duration of 5 years.
Although it is not legally forbidden for a person registered with the FCC to take out a bank loan, it is almost impossible to do so. Indeed, the banking ban means a very difficult situation for the borrower. As a result, financial organizations do not generally grant loans to this clientele, hence the importance of anticipating their difficulties and solving them through an urgent loan buy-back.
It is however possible to obtain the lifting of a banking ban before the 5-year period. For this, the person concerned must regularize incidents with his bank. It will then be much easier to get a quick loan buy-back.