There are several types of consumer credit and for each of these consumption credits, you will be confronted with multiple offers, each including a rate of interest of its own. Thus, it is important to understand the peculiarities to choose the most interesting offer, with the lowest possible interest rate.
Among the consumer loans that will be offered, you will find 3 main types of credits:
- The assigned credit that is entirely dependent on the purchase of a particular property.
- Personal loan that gives free use of funds to the beneficiary
- The revolving credit whose use of the funds is free and which has the particularity of renewing itself automatically according to the repayments made by the borrower
Once you have identified the credit that corresponds to your need, you will then have to select an offer with an interest rate that is as interesting as possible.
Why choose the best rate?
The interest rate of a credit represents the cost of a credit. The higher the rate, the more the credit will cost you in the end. It varies depending on banking institutions and credit offers. It is also dependent on the rate of wear, defined by the Bank of France, which consists of a limit that market interest rates can not exceed.
Since the interest on a loan is calculated based on the amount still to be repaid and the interest rate of the loan in question, it will be more advantageous to opt for a credit with a low rate, with a repayment term. as short as possible.
Variable rates and fixed rates, what to understand
Some credit offers will include fixed rates, others will include variable rates. It is important to understand what it means before committing.
For example, a personal loan and / or an assigned credit are fixed rate loans. This means that at the time of the loan, you know the amount borrowed, the credit rate, the duration of the repayment and the amount of the monthly payments. Thus, by calculating the difference between the sum borrowed and the sum of all the monthly payments to be repaid in the end, you know the overall cost of your credit.
Conversely, a revolving credit, or revolving credit, will be offered with a variable rate. Thus, at the time of the loan, you know the amount of the loan authorized (which is renewed according to your repayments), the minimum amount of monthly payments (you can complete this amount if you wish to repay the loan in advance), and the rate applicable at the time of signing. This rate is likely to change at any time, for better or for worse. In the event that the rate of your credit in progress changes, the banking organization is obliged to inform the borrower who can refuse this change within 30 days. In case of refusal, the credit ends and the borrower must make the final repayment of the loan, in several monthly installments or at once, as he wishes.
Attention, in the context of a variable rate credit, it is therefore impossible to know the actual total cost of the credit in advance since it will depend on the interest rate and the duration of the repayment, criteria likely to vary.
Help to find a consumer credit at the best rate
In your search for the consumer credit at the best rate, you can rely on:
- Online credit comparators: Online comparators are designed to help you find the best rates on the market. They have complete databases, constantly updated, and listing all the offers on the market. These offers are ranked from the most interesting to the least interesting (based on the proposed interest rates). The offers offered by the comparators also include promotional offers.
- Online credit simulations: Credit simulations are available on the websites of the online comparators but also directly on the banking sites via credit simulators. It is a non-negligible tool when one looks for a credit since it allows to project in it. Thus, you can get visibility on the cost of a credit and its rate, playing on the amount borrowed, the amount of monthly payments, and the duration of the repayment.
- A brokerage agent: A broker specialized in credit or an intermediary in banking operation is available to accompany you in your search. He will be there to help you in the process of applying for credit and will also play a negotiating role with the credit institution. Most often, soliciting a broker will not cost you anything since they are paid by the lenders and not the borrowers.
Namely, to further reduce costs:
- 3 to 4 times a year, banks offer promotional offers. If your request is not urgent, it may be worth it to wait a bit.
- As part of a consumer credit, insurance is not mandatory. If the lending organization you want to apply for still applies, do not hesitate to benchmark insurance on the market, even if you take insurance from another institution than your lender.
- Fees are not always included in the offers that are available to you. It is important to ask for the amount of these fees. They are sometimes negotiable if you prepare your file upstream.
- Beware of overly attractive rates: These offers are usually granted on loans repayable in 1 or 2 years, which will require a significant contribution.