Can a consumer credit be canceled? Acquiring a consumer credit allows you to solve financial difficulties, pay expenses, make an investment and much more. You acquire a payment commitment that is recorded in your credit history and your good reputation as a customer will depend on your timely payment. But in life, unexpected situations arise that can change our financial landscape drastically. That is why some clients ask themselves: is it possible to cancel a consumer credit?
Is it possible to cancel a consumer credit?
The short answer to this question is no, it is not possible to cancel a consumer credit since it was money that you asked the bank and you must pay. Once you have signed the contract, you are legally stating that you have read and accepted the terms and conditions and agree to pay the money plus interest within the agreed period.
There are several reasons why a customer decides that they want to cancel a consumer credit , but whatever the bank has policies on how and when consumer loans should be paid, and in general any type of loan. For example, it is not convenient for the bank that a few weeks after having approved a consumer credit the customer pays in full, so most of the time paying in advance generates an additional commission.
Even so, advance payments are the closest to canceling a consumer credit because they allow you to decrease the base on which interest is calculated, thus decreasing the total amount to be paid. However, as we mentioned earlier, in many cases advance payments generate a penalty since it is not convenient for the bank to stop charging full interest.
Although not everyone knows it, it is possible to make advance payments of a consumer credit to decrease the amount of capital and, therefore, the amount of interest they must pay, in addition to reducing the term in which they will be indebted to the bank. You may receive additional money at one time and want to use it to cancel your obligations and get out of debt. Well, you can make an advance payment of your consumer credit and reduce the amount owed.
Instead of canceling a consumer credit
The law offers the customer the inalienable right to make advance payments for the entire credit or partially. Of course, as long as you meet the bank’s conditions:
- Pay the interest generated so far for your credit.
- Pay a prepaid commission.
In summary, although it is not possible to cancel a consumer credit once you have signed the contract with the bank, you can make advance payments to reduce the amount of capital on which interest is generated, in which case you should consider the required prepaid commission by the Bank