A consumer credit is a loan granted by a financial organization to an individual. It is a contract clearly stipulating that an amount is granted and that this sum accompanied by interest must be reimbursed by installment payment to the lending organization. (monthly deadlines).
Individuals who are not careful can take out expensive consumer loans and which are very heavy to bear. In order to benefit from consumer credit at the best rate, you must be vigilant and compare the offers well before deciding. To help you in this quest for the best offer, here are our tips.
Refer to APR
All credit offers and consumer credit advertising must mention the APR. Online credit comparators must therefore display this reference rate on their site. It is strongly advised to be wary of comparators who do not present this rate online.
The APR is an indicator expressing the total cost of a loan, it allows the comparison of loan offers advanced by banking establishments. It is also designed to facilitate the negotiation of the client with the bank of his choice. The interest and the capital borrowed by the client as well as all the costs are combined to calculate this actuarial rate.
A simulation to find the right credit
In order to benefit from advantageous consumer credit, the offers can be quickly compared anonymously and free of charge via online simulation on the website of banking establishments.
It is also possible to choose another route: identify the best available rates of online personal credit simulators offered by these establishments before compiling your loan application file.
It is advisable for the borrower to carefully check the various items that go into the loan offer. Certain criteria are not taken into account by these online simulations, including the cost of insurance and application fees.
Prefer classic consumer credit to revolving loan
The 2010 Lagarde law provides that a bank must offer conventional consumer credit but not a revolving loan if the amount borrowed exceeds 1,000 dollars. The revolving loan is indeed offered at a higher interest rate than that of conventional credit.
You should know that conventional consumer credit has advantages at the time of subscription including knowledge of the total cost of the loan, amount to be reimbursed each month with an amortization schedule.