However, credit organizations have already managed to take care of their customers and have developed a new financial product called “re-crediting”. Re-crediting is a handy bank tool that allows a borrower to repay several loans at a much more favorable rate than earlier loans with a much longer repayment period. In addition, through borrowing, the borrower not only feels financial relief, but also finds a solution to their credit obligations. At the same time, he has the opportunity to plan for his financial situation in the future, as he is clearly convinced that the re-crediting will definitely clear the debts (on the date specified in the re-crediting agreement).
The reason for multiple credit defaults lies in the fact that when multiple loans are applied for at once , the customer starts to have dates and payment levels that lead to overdue payments, fines and other financial penalties. Overcrediting can help you sort things out and fix your credit history at one point.
Re-accreditation – what is it?
The opportunities of the modern world are too attractive for mankind to give up. The result of getting such access to everything and immediately becomes a situation when a natural person applies for a mortgage, car leasing and consumer loan. But after half a year, it begins to realize that the ends can barely be tightened, so that they cannot be fully paid back later. Also included in this debt “basket” are quick loans, which you cannot do without waiting for a salary. By omitting one or more quick loan payments, further debt repayment becomes more difficult for the borrower. Not everyone can solve this situation on their own, so without the help of an outside assistant. These third parties, however strange they may be, may become the bank or any other creditor.
Not only do you have to deal with loan repayments, but you are convinced that the terms and conditions of such a combined credit are much more favorable than the existing ones. Re-crediting or combining all existing loans in one will also make the borrower’s life much easier from a psychological point of view: you will no longer have to remember repayment dates and minimum payment amounts – you will simply pay off the loan in one monthly payment.
All re-credit programs offer favorable terms and low annual rates compared to conventional consumer loans. Therefore, if you are facing an attractive re-crediting program, why not swap all your existing debts for this great deal.
Only borrowers who apply for a particular service for the first time can receive free credit . If the borrower has decided to apply for a re-credit or a combination of several loans into one, he will not be able to get a free loan because he is no longer applying for a loan. The fact that free credit will not be possible can also be explained by the fact that re-crediting is a relatively large credit that allows you to combine a number of pre-existing loans. But the free credit service is offered only in the quick loan program, which is characterized by a short repayment term and a small amount. Therefore, re-crediting cannot be free.
Overcrediting in itself is a relatively serious procedure that allows you to quickly get rid of debt in exchange for one common debt, but on more favorable terms. The main benefit of any re-credit is that it will have a repayment term, though the interest rate on this program will be much lower than, for example, fast credit. With an extended re-credit repayment term, the client gets the opportunity to repay the same debt, but in smaller installments. Thus, he removes the financial “tension”.
Re-accreditation without formal work
If you need re-accreditation but don’t have a formal job, credit consolidation is possible for you if you have a steady source of income . All you have to do is certify your income level and the re-accreditation will become available to you. Undoubtedly, your application for credit consolidation will be individually considered by the bank, so you will, as a minimum, have to prove your solvency.
Retirees and people on passive income can also expect to be credited. For example, if you live on the profits you make from renting a home, pooling your loans will help reduce your monthly payments to pay off your past loans.
The re-crediting of pre-existing loans is a relatively large amount of credit, so the bank that offers the option to combine loans wants to get guarantees for full recovery. That is why many banks offer the option of applying for re-credit, but on one condition: the borrower must present the collateral in the form of his real estate. The exception to this situation is to have only a high and official income of the borrower: in this case, the bank may allow the execution of the loan without collateral. But such conditions are offered only on a case-by-case basis.
Another guarantee can be a reliable guarantor upon receipt of a re-credit. But if your income is fully sufficient to pay off the pooled loans, the bank may not require you to provide any additional guarantee. This way you get the chance to solve all your financial problems without the involvement of third parties.
Overdraft for debtors with a negative credit history
Re-crediting is intended for situations where the borrower already has several debts to various financial institutions. There are two situations in which a borrower may want to use recrediting :
- The client of several credit companies is fully dealing with the repayment of the outstanding loans, but wants to simplify the process and save money.
- The borrower has long since ceased successfully repaying several loans and now wants to recredit in order to repay the accrued debts.
If your situation is # 2, you should seek re-credit directly from debtors. Such programs are offered in sufficient number and, unlike ordinary consumer credit, credit re-credit will be executed even with a bad credit history.
It is not advisable to take another consumer loan to pay off your existing debt as it will not be enough to repay the entire debt. As a result, the borrower will receive another mandatory monthly payment.
Re-accreditation for persons aged 18-20
When young, our desires do not always coincide with our capabilities. It seems to us that we will be able to repay the fast credit as quickly as we can process it . But the reality is different: you stop dealing with your loan repayment and start extending your cash repayment term, thus increasing your overpayment. Often, in order to pay off a quick loan, young people start to take out a second loan – a consumer loan, but in most cases it does not lead to a positive result: the debt has already increased by two loans.
If the above situation applies to you, then the only right way to avoid debt is to get an extended credit overdraft. If the amount owed is small, you can apply for a non-pledge overcredit, certifying it only with your official income. If the debt is too high and your credit history is broken, you will not be able to do without a collateral or guarantor . In addition, the guarantor must have an ideal credit history and a relatively high official income.