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Credit redemption companies focus on factors in your application that will largely determine whether you qualify.
Once you have submitted the loan application, the loan officer reviews your information and checks your credit history.
Some credit redemption companies use an automatic rating system to classify your credit, while other companies use credit analysts to determine if you qualify.
Whichever system they use, there are unavoidable elements of your application that the lender will consider.
What is the redemption of credit?
Credit buyback involves taking a single large loan to pay back many small loans. In other words, the debt consolidation loan is a loan (usually a bank) that allows you to pay off your debts to all your creditors at one time.
This means you only have one monthly payment, often at a lower interest rate than you currently pay. This allows you to save money on interest charges and repay your loan faster.
Conditions to be taken into account for a credit surrender
1. Check your credit history
If you have had a credit card for a number of years or have had other debts like a personal loan or car, then you will have a credit history.
If you stayed up to date with the repayments, then your credit history is probably very good.
It is important to ensure that your credit history is accurate. Because a lender can review your credit history when you apply for a loan as part of their assessment.
There are a number of agencies in France that can provide you with your credit report. This can be helpful in revealing potential problems before applying for a loan.
2. Make a list of what you need.
Having a complete list of your debts can really speed up your request. It will give you an idea of the amount you would like to borrow. Do not forget to list things like credit cards and other personal loans.
3. Details of your living expenses
Highlighting things for which you are spending money can help you set the repayment schedule for your loan. Think of things like rent, bills, groceries, gym membership, insurance premiums, car expenses and everything that gives a very good indication of the cost of living.
4. Overall stability
This does not just apply to your income. The loan officer will want to know if you have lived in the same place for more than two years and may be asking you how long you have been employed by your current employer.
5. Your employment data
The creditor will first want to know if you are able to repay the loan. It is likely that they will ask you for a paycheck stub as proof of your income, to make sure you have a steady job and that you are doing enough to cover the payments.
Many companies will require a certain debt-to-income ratio, and your monthly disposable income is between 10% and 15% of your gross income.
6. House equity
Credit redemption companies are reluctant to give large sums of money to unsecured people.
Most creditors require a respectable amount of home equity to qualify for a debt consolidation loan.
If you do not own a home, you can still get a debt consolidation loan (this will be just for a lot less money). As an indication, you should be able to consolidate 50,000 euros in debt if you have 60,000 euros worth of home equity.
Obviously, owning one’s own home is huge when it comes to qualifying for debt consolidation. Many creditors will relax their standards if you own a home.
They think that if you are not able to pay, the credit redemption company can still seize your house, sell it and use the proceeds to pay off your loan.
Whatever your situation, make sure to make comparisons and simulations on our site, in order to find the best credit redemption company for your needs before submitting your application.
Each lending institution has its own criteria; you will want to know what you need to qualify before applying.