Month: March 2020

How To Compare Credit Buy Back Offers?

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Struggling with a difficult end of the month, thinking about buying back credit? This operation can indeed allow you to restore the situation and get out of your financial worries. To obtain loan consolidation studies and find the best deals, the use of a credit buyout comparator is often advised. Most online credit organizations - if not all - also offer a simulation tool. This allows you to make comparisons very simply and very quickly.

Why buy back credit?

Why buy back credit?

Also known as a credit consolidation or debt restructuring, the repurchase of credit consists in joining together several loans in progress in a single credit. The objective for the borrower is to reduce his monthly payments. The latter thus gains in purchasing power and has the possibility, for example, to save or finance other projects that are close to his heart. As with any loan, borrower insurance is optional here.

A credit consolidation is appropriate in two cases:

  • when the borrower begins to experience financial difficulties: he will avoid a potential situation of over-indebtedness and, in fact, registration with the FICP (file of incidents of repayment of loans to individuals). Because it should be known, any over-indebted person registered on this file can no longer either take out a loan or make a credit repurchase;
  • when the economic situation allows: in other words, when there is a fall in interest rates.

If a repurchase of credit allows the borrower to lower the amount repaid each month in respect of his debt, it implies on the other hand an increase in the total cost of credit. This for a simple reason: the repayment term of the loan is extended. However, this duration determines the APR (annual effective annual rate) which will be applied. The longer it is, the higher the APR.

Good to know: some borrowers from the opposite
The repayment tenure is fixed according to the financial situation of the borrower. Thus, when they carry out a credit consolidation, some borrowers have the possibility of shortening the repayment period, and therefore significantly reducing their borrowing rate.

I have loans of a different nature: how does the loan buy-back work in such a case?

I have loans of a different nature: how does the loan buy-back work in such a case?

There are several types of credit consolidation, each one suited to a particular situation.

  • The purchase of consumer credit: it concerns any type of consumer credit (affected or not affected), such as car credit, revolving credit, bank overdraft or tax debts.
  • The repurchase of mortgage: it applies exclusively to mortgage loans.
  • The repurchase of mixed credit: it includes mortgage and consumer credit (s).

Whether you use a credit institution, a banking establishment or a credit buyback comparator, your credit consolidation file will therefore be treated in the same way on this point.

Note: beware of confusion
Redemption of mortgage and renegotiation of mortgage are two different concepts that should not be confused. The first means a repurchase of your debts by a competing establishment, the second a renegotiation with the organization which granted you the loan.

What is a credit buyback comparator?

What is a credit buyback comparator?What is a credit buyback comparator?

Credit consolidation can be carried out with different establishments. The borrower can appeal:

  • to a banking organization;
  • to an organization specializing in credit;
  • but also to a credit repurchase broker.

However, credit repurchase comparator and broker form a single entity. Intermediary in banking operations (BIO), this professional is independent of banks and credit institutions. Its role is to study your credit consolidation file, then to put in competition for you organizations specialized in this financial operation.

The loan repurchase broker has a whole professional network around him. This is what allows it to find particularly attractive rates. Much more than if you applied for it yourself.

Your Loan Declined? Let’s Fix Your Credit Score!

by admin

Your loan application was rejected because it turns out you have a bad credit history or credit history? Or was it rejected because it had no historical credit before? If you have a case like this, maybe you can start checking your credit score.

One of the main reasons why potential borrowers fail to obtain a loan is Historical Credit. As usual, historical credit will match your credit score. The higher the credit score you have, the sooner your bank or online Non-Credit Lending will approve your application. Your own credit score is the primary record used by banks, online Non-Credit Lendings or other Financing agencies to determine your loan application eligibility.

This credit score you can search for your loan history

This credit score you can search for your loan history

Payment cycle, number of delays and how much credit you have. This data is also linked to Bank Indonesia through BI Checking which is part of Bank Indonesia's Debit Information System (SID).

However, from January 1 of this year, the service began transitioning its management to the Financial Services Authority (OJK) through the Financial Information Services System (SLIK). So, if you are wondering why your loan application was rejected or even accepted but get a higher interest rate, you should try checking your credit score.

To check it, you can access OJK or BI Checking. Here are some steps you can take to improve your credit score while getting a loan after getting rejected. Let's check it out!

Check the data in BI Checking or SLIK

Check the data in BI Checking or SLIK

You can do this through Bank Indonesia or the Financial Services Authority's website, or come directly to their office. Well if it turns out that your credit performance is poor even in the blacklist category, you are required to pay for your entire installment first. After that to speed up the process, you can report the debt settlement to the nearest BI office immediately. Well, Good Finance, don't get into the system blacklist by BI Checking, because to recover, the delinquent records can take up to 24 months. Try to always pay your bank bills or Non-Credit Lending installments on time. That way, your credit score will improve.

Use a credit card

Aside from poor credit performance, there are other possible reasons why a potential borrower may be denied a loan application due to a lack of historical credit. To prevent this from happening, you can apply for a credit card at your bank. However, you should be able to use your credit card wisely, friend, so that you can have a good credit rating, paying the bills on time every month.

Take the number of installments that you can afford

Take the number of installments that you can afford

Ideally, the maximum amount of a debtor's loan should be 30% of your earnings per month. If your installment is over 30%, then your credit score will decline. Because at a rate of over 40%, the Bank will consider you a risky customer. So, before picking up a new installment, first pay for the previous installments, my friend.

Submit again

When your application is rejected, do not apply directly to the same bank again. You may want to take a few months to improve your credit score and pay off the previous installment. Discussing your credit score is far from commitment and discipline. If you are disciplined to pay your bills or installments on time, your credit score will be well taken care of.