All About Credit Redemption: Conditions, Benefits and Costs – Personal Loan Without Proof

Often, the individual is over-indebted after accumulating several loans. While the refund of a credit allocated to the purchase of a car has not yet reached maturity, it may be asked to take out new loans to install the heating, to go on vacation or to pay for surgery. As a result, its debt capacity turns red. Faced with his many debts, he can be the victim of bank fichage …  Find the best fast credit offers with our simulator Compare offers

Use credit consolidation

Use credit consolidation

To remedy this, the best solution is to use credit consolidation. This formula makes it possible to collect all the loans contracted in order to simplify their repayment and to revise the interest rate applied. Indeed, it is a repurchase credit at the best rate. How does this type of refinancing work? What are the advantages? How to calculate it? Read this guide.

What is the redemption of credit?


This is a loan consolidation method that allows you to collect outstanding credits in one. The credit redemption facilitates the payment of monthly payments, knowing that the borrower will not have to repay several credits at different rates, but rather a single credit at a single rate. As such, the repurchase of credit with registration is a solution adapted to customers over-indebted and victims of banking prohibition. However, only credits of the same kind, such as consumer credit loans, including restricted credits, student loans, revolving credits, and personal loans can be combined.

How does the credit redemption work?


The terms of repayment of the new credit will be specified when signing the repurchase of credit. In addition, the monthly payments will be calculated on the basis of the level of indebtedness of the person concerned, but also of his standard of living. Since it is a question of collecting several credits, it is logical that the amount of the monthly payments increases. But to ease this burden, credit companies extend the term of the loan.

What are the advantages of credit redemption?

What are the advantages of credit redemption?

There is no doubt that the purchase of credit is the best solution to simplify the management of the current account of an over-indebted individual. Each month, he will only have to manage a single debit and he will know precisely when repayment will expire. The purchase of low-rate credit helps to clean up its accounts and reduce the cost of monthly payments to less than 60% thanks to the longer repayment period. In addition, the acquisition of credit deals with all profiles of debtors whether it is an employee, a retiree or a craftsman.

Subscribe to the credit pool: the documents to provide

credit card

To open a credit redemption application file, it is necessary to provide different parts. The repurchase of credit can be undertaken alone or with a co-borrower, who is usually the spouse. Depending on the case, make a copy of the identity card, a copy of the family record book, a copy of the marriage contract and a proof of address in advance. For all these documents, it is often requested to provide certified parts of less than three months.

In addition, in order to proceed with the analysis of your loans, the institution will ask for proof of current loans, such as revolving loan amortization schedules, personal loans and mortgage loans. The credit institution will also require proof of income according to the status of the individual. If it is an employee, he will have to provide the last three payslips and the latest tax notice.

If it is a retiree, he will be required to provide an annual bulletin of his pensions and income property if he owns. If the person is in the process of retirement, the last three retirement allowance pays may be required. In the case of an unemployed person, he / she must prove that he / she receives an unemployment or other income allowance (invalidity pension, land income, etc.). Lastly, any person exercising a liberal profession must provide his last three declarations. tax advice, tax assessment, and proof of income. In all cases, the statement of personal bank accounts will always be studied carefully.

Credit redemption calculation: evaluate its cost

Credit redemption calculation: evaluate its cost

The cost of the repurchase of credit depends essentially on the total amount to be repurchased and the terms of repayment. For example, if the interested party asks the credit institution to pay its debts in advance, it must also pay IRA early repayment indemnities, which amounts on average to 3% of the outstanding capital.

In addition, the repurchase of credit incurs other costs, such as the opening of the file of domiciliation of the income, the expenses of brokerage, the insurance loan, as well as the deposit. In an overall assessment, these various fees may represent 10% to 15% of the amount repurchased. Moreover, in the case of a repurchase of credit abroad, other expenses may increase the total cost of the transaction according to the conditions established by the foreign bank.

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