Looking to buy back a loan? This option allows you to take advantage of a preferential rate and thus lighten your financial burden.
Credit Buyback and Credit Consolidation: What’s the Difference?
People often mention credit buyback and other times credit consolidation, wondering if there is a difference between the two. Essentially, there is none. The operation is identical.
Why opt for a loan buyback?
Three main advantages can be cited: easier repayments, reduced monthly payments, and a single point of contact for all your communications. Each credit buyback project requires personalized analysis to determine its relevance and feasibility.
While buying back a current loan involves fees such as reinvestment indemnities and potential processing fees, the long-term benefits are very real.
An effective tool against over-indebtedness, it is a suitable solution for individuals struggling to repay their ongoing loans.
Fixed Rate or Variable Interest Rate
Non-repayment of a fixed-rate loan in difficult situations can lead to a listing at the National Bank of Belgium for over-indebtedness. If the credit buyback involves a consolidation of personal loans, the generated rate will be fixed.
For more information on your personal situation and before compiling any files, you can check the status of your loans by mailing, visiting an agency, or using your card reader and following the online procedure with the BNB.
Online Simulation Available
You can quickly perform an online simulation, free of charge and without commitment. Upon receipt of the credit application file, a Credafin advisor can quickly provide feedback on the situation, often within a few days, or even a day. The lender is obliged to consult the files provided by the Central Credit Registry for Individuals of the National Bank of Belgium as well as its internal files.
Dedicated credit institutions will thus thoroughly analyze the applicant’s financial situation and their loans, including the outstanding balance, the total amount remaining to be repaid, and the contract duration.
Finally, know that buying back a loan doesn’t necessarily require having a mortgage or even multiple loans. It’s possible to buy back a single personal loan by renegotiating financial terms.
Additionally, a second credit consolidation is possible, meaning you can buy back a credit previously bought back. The procedures can therefore vary from case to case. If the buyback concerns only personal loans, the bank itself will handle closing and settling the ongoing loans.
