The credit report – Comment reporter in credit?
The deferral clause in a loan agreement corresponds to the total or partial pause of the repayment of the monthly payments due to the bank.
In which cases is it possible to defer a credit?
Whatever the reasons, a borrower has the right to request the postponement of his or her credits. This clause consists of interrupting the repayment of loan maturities for a defined period of time with the bank. In general, households that stop the payment of their monthly payments have seen their financial situation change, causing some difficulties to fully repay their funding (loss of income, loss of employment, arrival of a newborn, etc.). Postponing your loan is possible if it is a real estate loan or a consumer loan in repayment. However, it is not possible to postpone the monthly payments of loans agreed by the state such as zero rate loan or housing savings loans. Only conventional bank financing can possibly be subject to a credit carryover, it is still necessary that the clause is well written in the contract signed by the two stakeholders. In fact, the terms and conditions that have been signed apply automatically, and it is for this reason that the lender is quite willing to refuse a deferral of the loan to the debtor. When the contract is finally signed, it is therefore essential to scrupulously examine the different conditions of loan suspension, early repayment and many other important clauses. In the case of a borrower who wants to postpone the maturity of its real estate financing or consumption, other alternatives exist in case of financial difficulties.
Use the credit report carefully
The home has the choice between partial postponement and full postponement. The first is to interrupt the payment of the outstanding capital for a specific time (1 month, 3 months, 6 months, etc.) but it continues to repay interest to the bank and insurance. The second choice is to pay only the monthly amount of loan insurance, it is also this type of credit suspension that costs the most to the borrower and should be used with care. The possibility of interrupting part or all of the loan repayment is not an innocuous clause and it is important not to abuse it, especially for economic reasons. Pausing for a few months his loan, whatever its nature, will necessarily extend the total duration of the financing and thus the overall cost of the loan. Generally, a household defers its credit only over a very short period that allows them to recover a stable situation and avoid significantly increasing the costs.
Postponement of loan: alternative solutions in case of monthly payments too high
Some borrowers who are no longer able to honor their commitments due to a change in employment or financial situation choose to use their bank to take out a new consumer loan to repay their current funding. However, it is better to focus on other healthier alternatives since the subscription of a new credit will add an additional time to pay. To overcome repayment difficulties, instead of postponing the monthly payments of their loan, the debtors can opt for the repurchase of credit which enables them to renegotiate all the clauses of a loan, in particular to lower the rate (and therefore the monthly payment). Loan consolidation is also an alternative solution for borrowers who have taken out more than one loan. This financial operation consists of collecting several loans within a single one in order to have only one deduction of a reduced amount. By extending the total repayment term of the loan, the debt ratio also decreases, allowing the household to benefit from an additional sum in order to finance a new project.