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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Transfers abroad

To adjust a transaction, you can send money by wire transfer from your bank account to an account in a foreign bank. In the same way, you can receive a wire transfer emitted from an outside account into your bank account.

Abroad, in euro or in foreign currency transfers

A transfer abroad can happen currency (in foreign currency) and euro.

When you receive a transfer issued in foreign currency, the amount is converted to euros when it is brought to the credit of your account, it is certainly expressed in euro.

If you issue a transfer, it is your choice if you make it in euro or in the currency of the receiving country. Costs related to international transfers, outside the European economic area *, are usually borne by the transmitter. They include a commission, the amount is freely determined by the Bank, and foreign exchange.
The execution of the transfer time depends on each bank involved in this operation. There is no maximum time limit fixed by the regulation.

* The European economic area (EEA) includes the 28 States of the European Union (Germany, Austria, Belgium, Bulgaria, Cyprus, Croatia, Denmark, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Czech Republic, Romania, United Kingdom, Slovakia, Slovenia and Sweden) plus three States on four of the EFTA (European free trade association): the Iceland, the Norway and the Liechtenstein. The fourth State, the Switzerland, is not EEA member.

The SEPA credit transfer

The SEPA credit transfer is a transfer harmonized at European level, for transfers issued or received in euros, to account in one of the countries of the SEPA area, either the 28 countries of the Union European + the Iceland the Liechtenstein + the Norway the Switzerland Monaco (thus 33 countries).

This transfer, fully automated processing, require harmonized Bank coordinates: IBAN (international banking account number) for the account number and the BIC (bank identifier code) for the code of the Bank. There are all these coordinates on the RIB.

The less than 50,000 euros SEPA credit transfer costs the same price as the national internal transfer (that it will gradually replace) except to the Switzerland. It guarantees a payment within the period of one day business (from receipt of the order for payment by the Bank), new time limit applicable from January 1, 2012, against three days previously. This period is extended by a day for transfers on paper.

For transfers made between countries in the economic area European, but executed in the currency of one of these countries, other than the euro, the turnaround time is four-day maximum. And the transfer may be charged differently than the transfer internal. This is also the case where the transfer relates to an amount greater than EUR 50 000 or if the coordinates of the beneficiary (Iban and Bic) are incomplete.

The transfer of money abroad (Western Union or Money Gram)

If you need to transfer money to a child travelling in a foreign or do you send money in an emergency, you can use the services of Western Union or Money Gram. Just to have a piece of identity and a code on which the sender and recipient must agree.

These devices are very useful in the event of particular difficulties (loss or flight of your credit card during a stay abroad), as the networks of these companies are particularly extensive in the world. However these services are very expensive (10% of the amount transferred) and so it is better to use only in case of necessity.

Prefer bank transfer to Bank if you choose. Otherwise the international mandate may be a solution, but the time limit is longer: 4 to 10 days (if outside Europe) for a classical term, 48 hours for an express term (However the term international express is far from being present in all countries).

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Pay by cheque or cash abroad

Pay cash abroad

This solution is of course facilitated throughout the euro area.

In other countries, you can obtain money through your credit card (check in advance with your bank in order to have an estimate of the costs) or by changing your liquidity in euro from the local banks or foreign exchange agencies.

When you withdraw money in a foreign country using your credit card, the commission levied by your bank includes a lump sum and the rest varies proportionally to the amount collected. To avoid paying too much fixed commissions, attempt to remove large sums, while remaining vigilant. Some banks also have partnerships with banks abroad in which you withdraw money from your card without charge.

Most often the exchange agencies located in airports collect significant costs. Does therefore not too change is money if you're in a large city because you will certainly be able to find better rates then.

The foreign exchange transaction has a cost: changer typically take a commission and the exchange rate may vary in your disfavor from the day of purchase and the day of debiting your account.

For the most common currencies worldwide (US dollar, pound sterling, yen...), it is possible to get currency from before your departure from your bank. It is however take you in advance. It is the least expensive solution in general. For other currencies, you can request from the Bank of France.

Use travelers cheques abroad

Conventional cheques will be not useful overseas: little used, written in French, they will hardly ever be accepted.

On the other hand, it is possible to serve you from traveler’s cheques, provided that order them before leaving. This is checks in a pre-established amount issued in a particular currency, mostly in euros or dollars.

You pay the cost of issuance, but this means of payment is relatively safe and convenient since it is accepted everywhere in the world and guarantees a high security in case of theft or loss.

You can exchange at a bank in the country of destination for cash, or deal directly with some traders (e.g. hotels).

If the currency of the country where you are travelling is not available in traveler’s cheques, make sure that it will be possible to change euros on the spot. Otherwise you can get dollar traveler’s cheques and change them on the spot, but you will then pay twice a commission (for each change of currency).

Be careful to keep the receipt that is provided to you at the time of their purchase: it will allow you to oppose in the event of loss or theft, and especially to make you repay these values on site, quickly and free of charge.

Before leaving, sign each of your cheques only at the top and left. You will be asked for another signature, at the bottom left at the time of convert them into cash. This countersignature must be affixed before the bank employee to whom you ask the Exchange.

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The Bank, theDigital or electronic safe and insurance

A digital safe is a secure, accessible storage on the internet and to keep electronic documents in various formats. It is primarily intended for the conservation of paperwork such as invoices, contracts or salary.

According to service providers and the desired storage space, it is usually paid. The price may vary from one or two euros to 10 euros per month. But it may be free for small storage spaces (1 Giga byte).

It is proposed by banks, insurers or independent enterprises. The contract of opening is generally terminable at any time.

How does the digital safe?

Most digital safes work by downloading of previously scanned documents.

Some vendors offer to automatically collect certain documents(invoices, and even salary slips) to issuers (EDF...) and to classify them. It is sometimes also possible to set up an e-mail address dedicated to the reception of these document types and linked to the trunk for the automatic classification of these.

A sharing function exists sometimes allowing third parties authorized to have access to certain documents of the safe.

The recommendations of the CNIL on the safekeeping digital

In its recommendation published in the Official Gazette of October 09, 2013, the CNIL
was held to clarify its position regarding digital safes. She believes that so-called digital safe services must ensure the integrity, availability and confidentiality of stored data. It makes several recommendations on security measures to be implemented, including:

·         the service must be investigated before its implementation of a normal (and not simplified) declaration with CNIL services, mentioning the categories of data personal processed by the provider (identification of users and connection data);

·         a digital safe is storage space is restricted to its single user and persons that it mandates;

·         the content must be protected by technical measures making it unintelligible to third parties not authorized;

·         the service provider must not be technically able to access the contents of the trunk without the express consent of the user;

·         the user should be clearly informed of the type of space at his disposal and the terms of use;

·         the deletion of a digital Vault document must be immediately taken into account. Any backups do not need to be maintained more than a month.

·         sustainability of the storage must be ensured and savvy users sufficiently in advance of any closure of the service. A simple data recovery system must be put in place (so you can for example easily change provider).

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Services of Bank depending on the insurers

All banks offer their customers to access their accounts directly through the Internet. After having subscribed to the services of banks remotely, it is possible to consult and manage all its banking operations remotely.

Subscription to Bank remote services

On your bank's website, you are accessing a secure customer space to manage your online accounts. To get there, you must first purchase a subscription to distance bank service, free or paid according to banking institutions.

To connect, you have a login and a passcode provided by your bank.

Consult the balance of its bank account and manage its day-to-day operations

24 hours a day and 7 days a week, you see the balance of your bank account, the last operations recorded the debit and credit transactions on your credit card which will be soon charged.

You edit RIB ( identified banking identity ), order a checkbook... You perform ad hoc or permanent, transfers between your accounts or to an external recipient.

More often, you will benefit it from reduced fees, or even zero, by carrying out your banking directly via the Internet instead of going into agency or call your Advisor by telephone.

See his savings, investments and credits

With a subscription of Bank remotely, you see the balance of your current credits (staff, auto, renewable, real estate), the amounts placed on your savings booklets, on your life insurance or securities your portfolio...

Manage its loans and its financial products

Passing by your customer, you can directly unlock a portion of your revolving credit reserve or prepay your personal loan.

You can also manage your life insurance contracts (payments, arbitrations, repurchases...) and your contract of insurance, auto, health (Amendment of the insured risks, statement of claims...).

In addition, you can buy or sell securities on the stock exchange, with transaction fees generally discounted orders placed in agency or by telephone.

Tips to use the Bank online and distance

You want to access your bank's services without the constraint of the opening hours of your agency or remoteness of your place of residence or work. Use the services of Bank away from traditional banks or hold a bank account in a bank 100% online allows you to carry out your banking transactions at any time of the day or night.

And if you are sensitive to the argument of the cost of banking services and products, you can do some (few) savings by making your online operations, passing you bank branch and a traditional contact face to face with a banking Adviser.

Tips for using remote banking services and bank online safely

·      Protect your computer with a firewall, an anti-virus and anti-spyware. They are free or paid versions.

·    Enable the "private browsing" option of your browser (Internet Explorer, Firefox, Google Chrome...) to surf the web without leaving traces. Go through the menu 'Tools', tab 'private browsing '.

·        Regularly change the code of access to online services.

·  If you connect in a public place (Internet Cafe) or with a mobile phone or a smartphone in the street, at the café or the restaurant, make sure you are safe from prying eyes.

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