Need a consumer credit for a daily necessity? Learn first to better understand consumer credit. Learn more here
Your car does not work anymore? The construction of your house is finished and now comes the time to furnish it with refinement? Or would you like to offer your family an unforgettable holiday this year? Our life, to all, is punctuated by these moments. These moments, where the head is full of cravings. But unfortunately where our finances, most of the time, have difficulty supporting us in such projects.
So, our eyes are dreamily turned to ads on consumer credit: “a revolving credit for all your needs”, “pay at your own pace”, “immediately available funds”.
The idea is attractive but we hesitate, however, out of fear. Fear, that such beautiful phrases lead us to a lookout. However, consumer credits can really make it possible to concretise certain projects, provided, of course, that you understand how these credits work.
What is the particularity of consumer credit?
Consumer credit is primarily for individuals. However, it should not be confused with real estate credit. Indeed, the mortgage serves, as the name suggests, to acquire real estate. While consumer credit, can finance goods and services such as capital goods for example. The allocated amount of consumer credit is therefore much smaller than that granted for real estate credit. It is often included, between 200 euros and 75000 euros. Regarding repayment dates, they are relatively short: between 3 and 5 years.
Consumer loans come in different forms:
- The loan allocated to a given expense such as the student loan to finance his studies or the car loan to buy a car.
- Personal loan not tied to a specific expense. In this case, the sum can be spent at your convenience.
- Permanent credit, or so-called revolving. This reserve of money is often linked to a credit card. You will then draw in your available reserve, according to your needs of the moment. The amount is automatically reconstituted with repayment monthly payments and is reusable as and when repayment.
- Online credit via the internet
Who to turn to for a consumer credit?
Most banks offer consumer credit. Secondly, financial companies have also specialized in this type of product. Their offers are often communicated via television, advertising posters, on the internet or in magazines.
When shopping in stores, sellers can offer you a consumer credit, in order to increase your purchasing power in their store. In this case, the store has a partnership with a bank or financial institution specialized in consumer credit.
How to obtain a consumer credit?
In order to obtain a consumer credit, it is important to meet certain criteria:
First of all, you must of course, be of age and not be banned. Then your bank or specialized financial institution will ask you the amount of your income, your expenses, your wealth and the composition of your family to see if you are solvent. After reading the credit conditions (interest rate, fees, insurance), you will agree on the desired credit terms, that is to say, define the amount and duration of the credit.
Concerning reimbursement, this is most often done in defined monthly installments. It should be noted, however, that for the permanent credit, the repayments come to reconstitute the amount of reserve available. For the student loan, it is possible to repay after studies, in which case it is a deferred refund.
Thanks to consumer credit, it is now possible to realize its projects and to be able to pay for consumer goods at one time. However, these credits must be used sparingly because their interest rate remains high and poorly managed, may lead, in spite of them, to over-indebtedness.