The personal credit comparator
There are many expenses that we can face in our lifetime, of all types and in all amounts. We do not necessarily always have the necessary funds, and we may therefore want to borrow money and provide consumer credit. Personal credit is one of the solutions to finance your projects. But how do you find your way around the many offers available on the market? The personal credit comparator is there to help you navigate it.
What is personal credit?
Whether you need to buy an everyday item such as a car, a television, a washing machine, or even rearrange your interior, or to offer yourself a service such as the preparation of your wedding, a trip, work in your home, or quite simply to have additional cash, the personal loan, after acceptance of your file by the credit company, will allow you to have the funds necessary for your projects without having to justify them.
Personal credit is unallocated credit, which means that you can freely dispose of your loan, without having to provide supporting documents, it will only suffice to declare your project.
The amount of the personal loan must, according to the Lagarde law, be less than or equal to $ 75,000, with a duration equal to or greater than 3 months, without exceeding 5 years. The rate of the personal loan will be a fixed rate, which will depend in particular on the amount borrowed and the duration of the loan. The repayment schedule is defined in advance, on the basis of fixed payments.
The Lagarde law of July 2, 2010 aims to improve the protection of borrowers. Indeed, the government wanted to improve consumer protection in terms of consumer credit. From now on, financial institutions are required to include various elements in their offers, which will not be revisable during the life of the contract.
As with most loans, the contract must mention several information, which are as follows:
- The Annual Global Effective Rate, the APR, which determines the overall cost of credit,
- The total cost of credit,
- The overall cost of the borrower's insurance, which will be that of the bank or the credit institution, or an external insurance that you have chosen,
- Additional costs such as administration fees.
The Global Effective Annual Rate that can be used to compare several personal credit offers is made up of all the fees charged by the bank or the credit institution.
Personal credit is therefore a credit that helps to carry out important and expensive personal projects, without having to save for several years. But the supply of personal loans on the market has become more and more important. This is why we advise you to use a personal credit comparator in order to find the best offer for your projects, as well as the best conditions.
Why compare the offers?
There are a multitude of credit companies out there with different offers. It is therefore important to compare personal credit offers in order to find the most interesting for you, and the one that will best meet your expectations and your needs. Personal loans can be granted by traditional banks such as Banque Postale, Crédit Agricole, Caisse d'Epargne, Crédit Mutuel, etc. Credit institutions such as Cetelem, Cofinoga, Cofidis, Sofinco, Carrefour bank, Banque Casino etc. … But also by companies present on the internet, specialized in consumer credit.
There are also several personal loan formulas, depending on your projects:
- Personal car and motorcycle credit
- Personal credit for works
- Personal credit to finance leisure
- Personal cash credit
The interest rates as well as the repayment terms are important criteria to take into account when comparing personal loan offers.
Regarding the rate, we must distinguish between the posted rate, which we can call the TNC (the Conventional Nominal Interest Rate), which can be attractive, and the APR, the Global Effective Annual Rate, which gives a precise indication of the total credit, including insurance. In fact, the lower the interest rate, the less your personal credit will cost you money.
Depending on the banks or credit organizations, depending on the duration, as well as the amount of the loan, the interest rate can range from less than 1% to more than 6%. According to a recent barometer, for a personal loan of 15,000 US dollars over a period of 12 months, the average interest rate is 2.42%.
Regarding the monthly repayment installments, they will depend on the amount borrowed, the duration of your credit, but also the interest rate. The longer the duration of the personal loan, the lower the monthly payments to be repaid, but the higher the total cost of the loan will be.
The bank or the credit institution will have to offer you monthly payments that do not exceed 33% of your income. This percentage corresponds to the debt ratio.
To be sure to choose the best personal loan offer, the best indicator to take into account is therefore the total cost of the loan. For two identical amounts and two identical personal loan terms, choose the organization that will offer you the lowest total cost of credit.
There are also criteria which may be important regarding the choice of the bank or the credit institution. Indeed, some financial institutions may offer you some flexibility regarding your monthly payments, such as the possibility of postponing a monthly payment in the event of a hard blow, or to revise your monthly payments downward or upward. It is important to note that the more you postpone your monthly payments, the longer the duration of your personal loan will be, and the higher the total cost of the loan will be.
How to compare offers and apply for personal credit?
In order to compare the different offers for your personal credit, all you have to do is enter in the loan comparator tool, some information about you and your project, namely:
- the amount of personal credit desired,
- the duration of the loan
- your profile: your family situation will be asked of you, as well as your date of birth, the date of birth of the co-borrower if you borrow from 2, the number of children you have in your care, the name of your bank as well as the year you opened your bank account, and the type of bank card you have. Your professional situation will also be asked of you, namely, your profession as well as your sector of activity, the type of your employment contract (CDI, CDD, interim ...), but also your income as well as the amount of your rent or your mortgage, if you are a tenant or owner.
Once all this information has been entered, the simulator will be able to offer you several offers, from the most advantageous rates to the highest interest rates. Of course, the credit rate is not the only criterion to be taken into account, it is also necessary to compare the various costs of each bank or credit organization.
Once you've chosen the best personal loan offer, all you have to do is apply, which you can usually do online. The bank or credit institution will ask you for documents to provide, such as a photocopy of your identity document, your latest pay slips, proof of address, your last tax notice, as well as your latest bank statements.
Your guarantees will have to be solid to obtain your personal credit, that is to say, you must have a stable job, good and regular income, have good savings capacity, and not be stuck in United's bank States.
Once your personal credit application is sent to the selected credit organization, it will be able to determine, depending on your financial situation, whether or not it grants you the loan. Banks and credit organizations will ask you to prove a stable job and sufficient income. They may refuse you for example the amount requested, or the desired duration, but offer you another personal credit offer, with a lower amount, and a longer credit duration.
In the event that your personal credit application is accepted by the financial institution, you will receive a loan offer, in which all the characteristics of your credit will be stated. Take the time to read this loan offer, and ask any questions you want before committing. Once the contract is signed and the loan offer has been accepted, the borrower has a 14-day withdrawal period to change his mind. The credit agreement becomes valid once this 14-day period has elapsed, and the entire amount will be paid to your account in one go.