This financing solution allows borrowers to consolidate their outstanding credits into one. Consolidation of credit allows a decrease in monthly payments, resulting in an extension of the repayment term and an increase in the total cost of credit.
Credit consolidation, for which purposes?
This kind of credit which restructures sometimes heterogeneous loans by merging them into one, aims to allow borrowers simplified management with a single credit agency and to recover a repayment capacity. The credit consolidation however, is not trivial. It commits the borrower to a new contract and a longer term.
Description of the solution
The credit consolidation replaces several loans taken out with one or more financial institutions. With the redemption, this allows the borrower to have only one monthly payment with a single due date from a single
This financial operation makes it possible to group various loans: personal loan, assigned loan, revolving credit, sale on credit …
The benefits of grouping
The credit consolidation is proposed both for the purpose of budget restructuring, but also for the simplification of a customer’s debts with a single monthly payment and a
annual percentage rate
adjusted accordingly. This new claim will have the following advantages:
• Reduced monthly payments: the new loan, negotiated with the acquiring financial institution, will reduce the amount of the maturities, which has the consequence of lengthening the repayment term and increasing the total cost of the loan.
• Cash flow to finance a new project.
• One contact: the customer chooses the buyer credit institution.
Tips and Steps
Credit consolidation is an engaging process. So you have to choose your financial institution buyer. Beyond the real benefits of this financial solution , by engaging in this approach, the customer accepts the extension of its borrowing period and the constitution of a credit file more consequent.
To better support you in your approach, Pre-finance provides you with all the necessary information and a simulation tool that also includes credit consolidation. In addition, our expert consultants in agencies are available throughout France to assist you in the administrative procedures related to your purchase of credit.