The repurchase of credit is one of the big trends of the moment especially with the relatively low rates which are very advantageous. However, as a senior is it also possible to take advantage of a credit repurchase? In this article, we invite you to discover everything you need to know about buying credit for seniors.
Buying back credit for seniors: a balanced budget
As a senior, it is also possible to earn money easily through the repurchase of credit. When you retire, you may still have outstanding credits. So your expenses will always be the same, but your income will not be. It is therefore advantageous to use a credit buyout to be able to balance your budget based on your income as a senior. Typically, home loans are finished for the primary residence, but there may still be consumer or auto loans outstanding. In the absence of substantial savings or in the presence of a significant loss of salary, it is possible to use this solution to go up the slope.
You should know that the repurchase of credit is adapted to the seniors by taking into account the new financial situation. Obviously, banks were previously reluctant to deal with loans granted to seniors, in particular because of the age and duration of the loans. However, mores have evolved and seniors have also become a very interesting type of clientele for banking establishments. The repurchase of credit is thus not a problem for the banks, because the seniors generally have a real estate inheritance in the event of problem.
In addition, life expectancy has increased considerably in recent years, allowing loans to be granted without fear of death before the end of the credit agreement. The repurchase of credit will be quite simply proposed with an insurance adapted for the seniors, so that the bank can still protect itself a minimum, but it is quite possible. This solution therefore remains a real opportunity for seniors who can plan their retirement more serenely without too much financial worry, and while being sure of being able to face their credits with their simple retirement.
Taking into account the extended life expectancy
Over the years, bankers have ended up changing their lending conditions, simply because life expectancy has ended up increasing. Thus, the life expectancy of a 60-year-old man is currently 22 years while that of a woman is approximately 27 years. Defining a person considered a senior in the eyes of a banking establishment is not obvious because on the job market it is possible to belong to this category from 45 years while the SNCF designates the seniors people over 60 years. We can therefore say that a senior is a person whose working life is over, and that they are therefore entering the retirement phase.
Consumer credits: credit for seniors
You should know that older people generally use consumer credit to cope with a drop in their income during retirement, especially when they have no savings, which is often possible. Note that 13.6% of households in France with credit are over 65 years of age. The economic situation leading to reductions in pensions will then tend to systematically increase the number of consumer loans for seniors.