Credit renegotiation without insurance

It is always possible to renegotiate the downward or upward his credit with the lender. But nothing requires your lender to accept this renegotiation.

The Bank is required to lower the interest rate for the category of loans supported by the State

The renegotiation of a loan is an operation by which your bank will replace the current credit by a new credit. If this change is made from another institution, known as '' loan redemption ''.

In General, better will be your relationship with your bank Advisor, more will be possible a negotiation. But what negotiate?

We renegotiate on the interest rates or over the life of the credit, which has change decreasing or increasing your monthly payments.

Negotiate the interest rate

If you want to renegotiate to lower your interest rate (fixed or variable) is that you consider that the evolution of the economic situation and financial markets oriented rates downward and you want to take advantage of this windfall effect. But the original contract cannot be changed without the agreement of both parties, and if some establishments will accept a drop, others will reject it without infringing the law.

If the institution refuses, you have two options that need to be studied carefully:

·       proceed to a prepayment, but this may cause a penalty, which will not necessarily be offset by the expected gain by the rate of new credit that you have been able to contract, likely from another institution;

·       do you redeem your credit by another establishment, but you will have also to set a penalty for prepayment to your current lender.

Negotiate on the duration of your credit

You may want to renegotiate the duration of your credit. If this possibility is provided for in your original contract, your lending institution cannot oppose, but otherwise, he may refuse.

In fact, it is less the duration of your credit as the monthly payment that will be modified, depending on whether your contract explicitly provides a Faculty of increase or decrease in the monthly payment. Contractually, if there is agreement of the two parties, this agreement will result in an amendment to the original contract which will determine the overall effective rate, the new schedule of depreciation and the total cost of the credit calculated on deadlines and fees to come.

If there is no need of new prior offers, you will have a cooling off period of 10 days from the date of receipt of the written information provided by the lender.

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Seniors and student Loan

Student Loan

Education is expensive sometimes. To finance this project, you can take out a student loan. Two solutions are available to you: the student loan guaranteed by the State or the classic student loan that you can get from your bank.

Seniors Loan

Banks have long been reluctant to make loans to seniors, including housing loans for a longer than average, because of their age.

Yet the situation has changed in recent years. Seniors are sometimes particularly creditworthy customers who are not afraid of unemployment. For the lucky ones, a level of comfortable retirement and a substantial personal contribution allows them to be particularly interesting clients.

The other factor that has also pushed the credit institutions to soften their stance and to more easily grant funding for senior citizens, is the lengthening of life expectancy. According to a study conducted by the economic and Social Council in March 2008, life expectancy is ten years, plus three years for females and two years for men. The direct consequence of this change is that today, a person 60 years a very large chance (three chances in four precisely) to reach the age of 80, according to the same report. Taking into account this fact, a senior 60 years can therefore quite contract a credit over 15 or 20 years unless his death occurring during the life of the loan.

Therefore, be aware that if you want to buy real estate or if you wish to undertake expenses for the trip of your dreams, the age is necessarily a barrier to your projects.

However loans to seniors have special conditions (particularly in terms of insurance) and credit can often be expensive.

Two forms of credit have recently emerged. It is the bonded mortgage loan originally launched by property of France and the life mortgage credit land. These loans have in common to integrate the value of housing to evaluate the creditworthiness of the borrower, while conventional loans do take into account the income of the borrower.

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How to ensure a free credit

The nominal interest offered by the bank rate is sufficient to compare the offers of credits or to determine the real cost of credit. Need to add fees, insurance, costs related to guarantees. Yields rate overall strength of the loan which allows to compare the rate offers in their entirety.

The amortization table details the various components of the total cost of the credit. Under the terms of repayment of the loan, the total cost of credit is amended.

Free credit

A credit is said to be 'free' when a trader offers you to pay for your purchase in several times and without any charges. In fact, advance you the amount necessary to purchase you are considering, but without making you pay interest on the amount advanced.

However, there is no truly free credit and credit interests are therefore to be paid by the merchant or financial institution providing financing on offer.

It is therefore an additional cost for the merchant that reduces his margin on the sale price, but allows him to sell immediately. For the consumer, this practice has the advantage of encourage them to buy immediately, without postponing its purchase at a time where it will have the necessary sum.

When the duration of the free credit is less than or equal to three months, it is not subject to the provisions of the consumer code protecting the borrower. A "three times free of charge" payment is not a consumer credit.

Free credit over three months: the same rules as for all consumer credit

A free credit, which lasts more than three months, is subject to the rules applicable to the consumer credit

The lender must give you a precontractual information sheet, which describes the characteristics of the proposed credit, allowing you to compare this offer with other proposals for credit. Then he hands you a credit offer that will have value of contract when it will be definitely signed by you and the credit institution.

You have a withdrawal period of 14 days calendar, Saturday, Sunday and holidays included, from the day of the signing of the credit supply.

The reduction of price in case of payment in cash is no longer required

The merchant is most obliged to grant a discount on the price if you pay cash while it offers a free credit, since September 1, 2010, pursuant to the law Mrs. Lagarde of July 1, 2010. But if the trader agrees a discount for payment in cash, this reduction on the price of the property must be included in advertisements, whatever the medium. The advertising must also mention that supports the cost of credit.

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Insurance, credit and Bank

Before give you a credit, the establishment in particular ensures that:

The regulation allows

Certain categories of loans, for example, are reserved for persons whose income does not exceed a certain amount. Similarly, a minor may borrow only a credit.

Your financial situation is compatible with the amount that you want to borrow and with repayments you have to do.

The jurisprudence is clear that the Bank has a duty to warn the borrower not notified in writing on a credit operation risks taking into account its financial capacity and debt which results from the operation.

When I agree a loan the Bank has the duty of me to warn against the risks involved?

Your interlocutor will check also that you have not known incident of payment in the past, but this type of verification to the national file of the reimbursement of individual incidents (see why is it registered to the FICP on the website of the Bank of France shall however not prevent to grant credit. It allows to know people still have an unresolved credit payment incident or who have a record of current indebtedness (within the limits of the legal time limit). Above all, are enrolled in the FICP that people who have had incidents of payment. The notion of positive, widely discussed file on the occasion of discussions on "credit consumption" law, would allow the bankers to know, for all customers, including those who have not yet known incident of payment - the State of debt - at least in France.

Some basic before borrowing tips

Avoid a too heavy commitment

Before you take out a loan, make sure you do not take a too heavy commitment. Do simulations with the calculators on our site and do not hesitate to ask simulations to your institution. They will show you precisely the refunds you'll have to perform according to the amount borrowed and the life of the loan. Do not forget that without exception, the monthly payments continue to be due even if your income declined.

Read the prior loan offer

Whether it is for obtaining a mortgage or a credit for consumption, the establishment you address a prior loan offer that describes the characteristics and conditions of the loan. Following the receipt of this prior offer, whose period of validity is 15 days for a credit, consumption and 30 days for a mortgage you have a period of retraction or reflection. Remember to use this time to reflect on the mastery of your future commitments, prior to the actual signing.

Compare offers

When you compare the different offers that you are made, take into account all the elements. Make your comparisons from the TEG (percentage rate) proposed. Mandatory in all offers and all acts of loan, as well as in advertisements, it allows you to have a vision of the overall cost of your financing and compare to competing offers of credit. TEG incorporates all of the costs required for the realization of your funding: nominal interest fees, cost of compulsory insurance. Also take a look at the other selection criteria that insurance, guarantees are taken by the institution, the early repayment conditions described in the contract of loan etc...Of course other advice tailored to the type of subscribed (real estate or consumer) credit you are given in the corresponding topics

The rate of wear

When you purchase a credit, the rate that you are granted cannot be higher than the rate of wear. This rate is calculated every three months for each class of loan from the average rates charged by banks during the quarter. It is published in the Official Journal at the end of each calendar quarter and can be consulted on the website of the Bank of France.

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