Credit Repurchase: Is It Profitable?

The repurchase of credit has several names but the purpose remains the same, the goal is to group several loans into one in order to reduce the monthly payments and allow the creditor to rebuild his financial health. When too many loans have accumulated and the subscriber can no longer follow, credit consolidation can be a solution. The repurchase of credit is also very widely used to repurchase only one and single credit to save on the interests of the loan and thus in monthly payment and total cost of the loan. This practice has been more common than ever for a few years since mortgage rates have been going down for months.

Is it always profitable to buy a mortgage?

Is it always profitable to buy a mortgage?

No, this is not always a good transaction, you must first start by calculating the cost of buying back the loan, insurance and costs relating to this transaction. If the amount is significantly lower than the difference in credit rates, you can try your luck and contact credit unions or banking organizations. In certain cases the repurchase of credit is an excellent operation and it is largely possible to gain thousands of euros on the totality of a mortgage. We can advise a minimum of 0.9% difference between the base rate and the renegotiated credit.

How many active loans should you buy back?

How many active loans should you buy back?

There is no limit, you can group your monthly payments whenever you want. However, if you have no problem repaying your various credits, it is not useful to redeem your monthly payments. You still need to know that buying back credit has a cost and it is essential to understand that the monthly payments decrease but that the duration of the loan increases. A repurchase of several credits (conso, auto …) is a good operation when the creditor can no longer pay his different monthly payments.

Where to buy back your credits?

Where to buy back your credits?

A lot of organizations offer this service, you can start with your bank to get a first opinion. Always ask for at least three different opinions and quotes for your buy-back!

Do you know the online credits?

Since the crisis erupted in 2008, the failure of traditional financial institutions to offer consumer loans or to purchase a home has become our daily bread. The lack of job stability and lower and lower wages did not help improve the financial outlook for our country either.

Precisely as a result of this situation, where most of the Spaniards were completely abandoned by the banks and without the possibility of obtaining credit to continue with the day-to-day (either with consumer loans with mortgage loans), methods began to appear alternative financing. It was in 2012 when this type of alternative methods came to light and in 2013 when they would end up taking off and obtaining a significant gap in the Spanish financial system. And these methods became an immediate opportunity to continue for both individuals and companies that were born at that time and were unable to obtain credit from traditional financial institutions.

Online credit was born in a period severely affected by the crisis and became the solution for many of the Spanish who needed credit. It should not be forgotten that although financial institutions decided to stop lending money, people still needed to apply for financing. But, what were the reasons for the appearance of these credits?

Why online credits appear

Why online credits appear

  • Firstly, and as we have already explained, because traditional financial institutions decide to turn off the tap and stop lending, both to individuals and to emerging companies.
  • The continuous scandals that appear in the press about the bad actions carried out by banks, make confidence among the Spanish increase towards traditional financial entities. These go from being companies of complete trust and transparency, to apparently corrupt companies that only think for their own benefit. Although this involves exercising actions that are detrimental to customers.
  • New technologies are the order of the day and users are increasingly comfortable using them. E-commerce grows and security in transactions made through the internet becomes a tangible reality. The fear of operating through the internet (to buy, sell or contract services) gradually begins to disappear.
  • As a result of the situation, purely online banking entities arise that are in charge of filling the gap in financing left by traditional banks. They are authorized, trustworthy and one hundred percent legal companies, which are responsible for granting credit to both individuals and companies.

Online credit thus becomes a new method of secure financing to obtain credit, both for individuals and companies.

When do we talk about online credits?

When do we talk about online credits?

A credit is any financial action where a lender offers financing to a borrower in exchange for interest and the return of the amount in the agreed monthly installments.

We can speak of online credits when these amounts are obtained through the internet. Absolutely all actions are carried out online and from the comfort of the home or business of the individual or the company requesting the loan.

Both the paperwork and the request are made through the internet, without the need for the client to move to be able to make the credit effective.

Another advantage of this type of credit is the ease and speed of receiving the money. Normally, not as much information is required for the granting of the loan. In addition, in most cases, once the data is corroborated and verified by the lender, the client can have the money available in up to 48 hours and directly deposited into his checking account.