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Renegotiating consumer credit: how to do it?

The consumer credit is an appropriation or non-allocated for the purchase of a good or a service. If the mortgage can be renegotiated, consumer credit has more opaque legislation regarding the revision of its repayment conditions. In this article, we will tell you all about renegotiating consumer credit.

What is a consumer credit?

What is a consumer credit?

Consumer credit is credit granted to an individual by a bank or a credit institution.

The amount of this credit is between 200 and 75,000 $, over a minimum period of three months.

If several consumer loans can be combined, however, the totality of the borrower’s monthly credit payments must not exceed 33% of his income, in order to protect him from over-indebtedness.

Consumer credit has two distinct categories:

  • The appropriations allocated for the purchase of a specific asset;
  • Unrestricted credits for free use of the borrowed amount.

The appropriation allocated is intended to finance a good or service indicated in the contract. It has the particularity of being entirely dependent on the good to be financed, and vice versa. It is nevertheless important to indicate on the sales contract that it is conditioned to obtaining credit.

Unrestricted credit allows the borrower to use the borrowed amount as desired. This is a very flexible financing solution since it requires no justification for the destination of the funds.

For several years now, consumer credit has been strictly regulated by law in order to limit any abuse.

To find out more about consumer credit, you can consult our full article dedicated to this topic .

Is it possible to renegotiate consumer credit?

Is it possible to renegotiate consumer credit?

The loan renegotiation operation concerns only the mortgage and not consumer credit.

Indeed, once the contract is signed, the legislation certifies that the borrower cannot go back. It is therefore impossible for you to renegotiate your consumer credit in order to reduce the monthly payments or the repayment period.

This is explained by the fact that for banks or lending organizations, consumer credit has too short durations and amounts. It is thus not sufficiently profitable for the latter.

This is why you must be particularly careful when choosing your credit and your creditor. An annual effective annual rate (APR) which seemed really attractive when the contract was signed can quickly seem expensive to you after its variations.

However, if you find it difficult to repay your monthly payments, remedies exist:

  • The extension of the deadline twice a year maximum;
  • Pause credit.

Depending on the banks, you may benefit from the postponement of one or more deadlines, in whole or in part.

Pausing credit consists of suspending the repayment of monthly payments over a given period.

For consumer credit, only credit redemption is possible. Its principle is to reduce the amount of the monthly payment by having them bought back by a specialized establishment, whether it be a bank or a banking intermediary.

What is credit repurchase?

What is credit repurchase?

Credit repurchase includes three types of repurchase including consumer loans. It combines all of your current monthly payments into a single credit and prevents over-indebtedness.

For this, the new establishment contacted balances all of the credits with the various creditors and replaces them with a new contract at a more attractive rate but of a longer duration.

So you can request it whether you are:

  • Tenant;
  • Owner;
  • Employee;
  • Or a civil servant.

The repurchase of credit also avoids being filed with the Banque de France as a banking ban. However, it is entirely possible that you will be refused your credit repurchase.

As consumer loans are not renegotiable, buying back credit therefore appears to be the most effective solution.

To apply for a loan buy-back, you need to prepare a file as for a mortgage loan application.

You will then need to provide the following documents:

  • Your civil status ;
  • Your income and your charges;
  • Your debt ratio (which must not be more than 33%);
  • Your real estate (and the act of purchase if you own it).

You will then have to have your financial guarantees checked in the event of non-compliance with the monthly repurchase of the credit.

It can then be:

  • A third person who acts as a surety;
  • Supporting documents concerning your financial situation;
  • A mortgage on your real estate assets;
  • Proof that your personal situation is healthy.

After studying your creditworthiness, the lender will make you a signed return proposal. You will receive a notification of acceptance or rejection of your request in the following weeks.

It is good to know that there is no law that requires a subscriber to take out borrower insurance. However, the latter is particularly recommended to protect you in case of disability or death for example.

We invite you to carry out a credit redemption simulation directly via our free and fast simulator.

How to renegotiate a credit union?

To obtain a buyout of consumer credit at the best rate, you need to carefully study the terms and conditions of your contract.

Indeed, the law limits the possibilities of renegotiating an existing consumer credit.

Law L-312-14-1 of the Consumer Code is formal: “in the event of a loan renegotiation, the modifications are made in the sole form of an addendum”.

On the latter will be found:

  • The amortization schedule;
  • The conditions for rate variation;
  • The remaining capital due in the event of early repayment.

The customer has a period of ten days to accept or refuse the proposal upon receipt of all the information concerning the renegotiation.

How to reduce monthly consumer credit?

How to reduce monthly consumer credit?

If you only have one consumer credit outstanding, it will be difficult for you to obtain a reduction in monthly payments with your creditor.

On the other hand, if you accumulate different credits within one or more lending institutions, it may be interesting for you to make a credit buy-back transaction at a competing institution.

Unlike credit renegotiation, grouping loans involves changing banks or credit organizations.

To do so, you will need:

  • Submit a credit buy-back request at the establishment of your choice;
  • The new creditor will then study your file;
  • Your file is accepted.

Once your file has been accepted, the new creditor will settle the credit (s) concerned and then contract a new credit contract with new terms.

With a full credit buyout offer, you can expect a huge drop in your monthly charge.

There are, however, two things to consider:

  • The fall in monthly payments automatically leads to an extension of the credit repayment period;
  • Any credit buyback operation involves an increase in the total cost of one or more credits subject to the combination.


To find out the best rates for your consumer credit or do the calculation, you can use this fast and free simulator or contact our team of Across Lender experts directly for personalized support.

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