Credit redemption refused: what are the reasons? Can I apply again?

Credit redemption

Credit redemption

An application for redemption of credits may be refused by a lending institution. Of course, the reasons for this refusal may be different. You can ask your financial institution for explanations. However, the latter is not obliged to justify his refusal. In this sense, you should know that each lending institution has its own validation criteria. That is why it is always recommended to solicit several organizations specialized in the repurchase of credit.

To note, according to the law MURCEF no expenses must be paid before the acceptance of the file. Thus, you can freely compete between different creditors even if you have already been denied this transaction. These are not only banks, but also financial companies and organizations specializing in certain types of credit redemption (real estate, consumer).

In this respect, it is advisable to resort to a broker of repurchase of credit which will help you to improve your chances of obtaining a regrouping. A broker preferred by several institutions can often find a solution even if the situation of his client is quite delicate.

What to do after refusing to buy back credit?

What to do after refusing to buy back credit?

We must first understand the reasons for the refusal. For this, you must analyze the situation and ask the lending institution to explain its reasons. Then, if there are weak points in the file, the borrower can reconstitute it, attach supporting documents or think of a loan guarantee. Indeed, a bond or a mortgage can maximize the chances of acceptance. Also, you can regularize your financial situation if necessary.

For example, files with an employment contract on permanent contracts are more likely to be accepted. At the same time it is possible to solicit other financial organizations that have more flexible acceptance conditions. On the other hand, it is not uncommon for less demanding institutions to have much higher interest rates. It is therefore necessary to make a comparison of the offers on the market. Since the criteria vary by institution, you can try to make several requests.

Likewise, if your financial situation changes over the months, you can send your file to the same lender who has already refused you a credit surrender. Finally, resorting to brokerage buyback credits can be an advantageous solution in case of refusal of consolidation. This saves time and money. A broker studies your situation, builds a solid file and finds the best adapted offer at a reduced rate.