There are several ways to repay your consumer credit. The most important thing is always to avoid having prepayment charges. We have described the different avenues to consider to repay your loan depending on the situation.
Repay your revolving credit
Repaying your revolving credit is an operation that can save you a lot of credit costs. The most important thing to know is that you will have no penalty for repaying a revolving credit. It’s the law. Repaying revolving credit can’t cost you money.
Revolving credit is usually attached to a store credit card. If you only made free credit transactions to make your purchases, it is not really worth repaying your credit because it costs you nothing. But in all other cases, it pays to repay revolving credit. The rates charged are in fact generally very high, around 20% revisable APR. We compared a revolving credit and a repayable credit for the same duration and the same borrowed amount, the difference can be several hundreds of USD. You can watch this comparison on our 4-star map page for example.
To repay your revolving credit, you can use the money you have on hand, but you can also take out a personal loan at the best rate to end it. In this case, you should not use your depreciable credit just for that and you must really repay the credit and close your revolving credit. It would be a shame to end up with two credits on your hands and installments that are impossible to repay. Finally, if you have more than one credit, you can buy back credits.
To repay your revolving credit, you must send a check of all of your debt to the credit agency, without forgetting to indicate your customer account number.
Find the best rate to repay your loan
To find the best rate to repay personal credit (anything except mortgage), we have developed a unique comparator.
First of all because our credit comparator is honest and has the best rates according to the APR, the legal reference rate. This is far from being the case for most of our competitors who prefer to offer the ranking that pays them the most.
Always with the aim of repaying your personal credit, thanks to our exclusive questionnaire, you will get a non-binding assessment of the organization that offers the best rate suited to your project. This exclusivity makes it possible to know concretely which best rate actually to obtain and makes it possible to fall back on the second or third best rate if necessary.
Repaying your credit by buying back credits
In most of the cases, consumer loans are reimbursed by buying back loans. If you have several credits and the monthly payments are more and more complicated to assume every month, the repurchase of credits is made for you. The credit buy-back operation consists of accumulating all your monthly payments into one. The new credit will reimburse all the others. Its duration will be extended to offer you an acceptable monthly payment.
In the event of early repayment of a personal loan (need for money, car loan, work loan, etc.), the financial institution may charge you fees. However, the law has regulated this practice. An organization cannot charge a fee if you repay your credit for less than 10,000 USD. Otherwise, he may ask you between 0.5% and 1% depending on the duration and the amount of interest you have to repay. A credit of 10,000 USD in depreciable or a debt of personal loan of 10,000 USD is the limit of the prepayment charges practiced by the credit organizations.
Repay your mortgage
It is clearly not our specialty. Repaying your mortgage deserves the analysis of a specialist that you have to meet firsthand. In particular because the real estate market depends on each region whether it is for the value of the property but also for the mortgage rates.