How to negotiate your credit redemption? – Loan consolidation

 

To lower his monthly payments or the cost of his credits a borrower can opt for the repurchase of his credit. In this case, he must negotiate the purchase with the bank or the lending institution. For this, there are several levers.

Negotiating the redemption of credit

Negotiating the redemption of credit

Negotiating a loan buyout can not be improvised. It is first necessary to prepare well its file and to bring the guarantees of its financial stability (incomes, bank statements) and not hesitate to make play the competition. To negotiate well you have to be well informed. Thus, the borrower knows the possibilities available to him among the different lenders and can play to change the negotiation in his favor. Since it is not always easy for an individual to negotiate, he can call on a broker who has more control over the levers of the negotiation.

Negotiate rate of credit redemption

Negotiate rate of credit redemption

The rate is one of the first points of the negotiation. It is often in case of lower market interest rates that a loan buyback is envisaged. We must therefore know what is practiced at the time of the redemption to negotiate the most interesting rate. Once again it is important to play the competition. But the rate is not the simplest part of trading.

Negotiating record costs of credit redemption

Negotiating record costs of credit redemption

This point, often neglected, is essential, but it is here that much of the bargaining can be done mainly for the consolidation of consumer loans. The fees are part of the negotiable points and 

Negotiating insurance of the redemption of credit

Negotiating insurance of the redemption of credit

Banks often strongly encourage the borrower to take out credit insurance. But the insurance offered by the bank is not necessarily the most financially attractive and does not always take into account the profile of the borrower. It is then possible to use an external insurance. The bank can not oppose it and is even obliged to present this choice to the borrower. The borrower can also negotiate the indemnities in case of early repayment and review the duration of his loan.

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