You are a tenant, and it becomes difficult for you to make ends meet at the end of the month because of the many credit repayments that you have to honor, the use of the repurchase of tenant credit is a solution that you will have to consider to be able to rebalance your budget.
The loan consolidation is open to tenants and significantly reduces the amount of their repayment payments while generating additional cash. The debt consolidation process allows for a net improvement in monthly purchasing power or/and new project financing. Finally, the repurchase of credit for tenant aims to clean up and simplify the management of your finances by having more than a monthly payment and a single creditor to whom to render account.
The use of tenant credit redemption
The Tenant Credit Redemption is for borrowers who have to pay rent to occupy their principal residence. Also be aware that people who are hosted free by their employer or even a parent, are considered tenants and can also resort to this type of credit surrender.
Having no real estate to put in guarantee, this type of repurchase of credit is also called “repurchase of credit without mortgage or without guarantee”. Knowing that the rent represents about a third of the expenses of the month, the situation of the tenants can quickly become difficult with several credits to be refunded hence the interest of starting a process of consolidation of the loans. With the exception of business loans and mortgages, it will be possible to integrate your consumer credit, your personal debts or the late payment of rent into your tenant’s request for repurchase of credit .
The specific conditions of a renter credit redemption
To the extent that renters have less collateral to offer than homeowners, the proposed terms for a tenant credit surrender are not the same and will be less favorable than for a homeowner loan buyback . Regarding the repayment term, the tenant will have to pay his debt within a limit of 144 months while a homeowner could stagger his debt for 30 years. In addition, financial institutions will generally limit the amount of the repurchase of credit to € 100,000 at the most.
The new monthly payments will take into account your repayment capacity and your monthly budget. It is important to note that a tenant’s repayment capacity is calculated after deducting rent. In the case where you are hosted free of charge, it will be possible to apply a fictitious rent when mounting your loan consolidation file. In any case, consider performing credit redemption simulations to compare offers and opt for the most advantageous offer.