Consumer credit comparators: transparency, reliability and independence
The online comparator market is booming thanks to the internet. Finding sites that collect and compare the prices of all the resellers on the web, often allowing you to add a myriad of options, is now an integral part of the first step in finding the best buy. Indeed, for most Internet users, this is the first step before any investment. Comparators have access to a huge amount of information thanks to software that actively searches and exploits web pages and allows selective and relevant sorting before committing. It is now possible to compare trips, hotel reservations, prices of retirement homes, everyday consumer goods, insurance and even various credits including consumer loans. How to navigate and how to trust one comparator rather than another?
The legislation is clear on the subject. Sites that are sellers or resellers of the product they are comparing and which often put their own product at the top of the list are often considered illegal, thus offering the public false comparisons and false advertising, biased to their own interests. Of course, some sites resell the products they compare and major brands are already using this process. However, the law allows these cases where the company uses an agency that sources the prices of the products and compares them instead of the company. This is how the comparison remains neutral and does not take the side of any brand. Thus, if the mark offers a comparison, this process means that it is no longer judge and party and the comparison is carried out in an honest and healthy manner.
Compare a consumer credit
In order to be able to effectively compare a consumer credit, it is necessary to compare the right elements. For a loan, the first element to compare is the APR, that is to say the Global Effective Annual Rate which is the interest rate that will be used for the duration of the loan. For an APR to be interesting, it must be fixed, or even declining, that is to say, it can be revalued downwards. If it is fixed it indicates that it will not increase during the term of the loan.
It is also possible to compare the consumer credit insurance offered by the lender. Insurance for this type of loan is not compulsory, however, and the organizations do not require borrowers to take out it. In addition, since the Lagarde law, nothing prevents the borrower from engaging in competition and choosing insurance that is external to the borrowing organization. This new device now allows consumers to choose the most attractive insurance on the market.
The comparison can also be made on the return of consumers who can compare the products or banks and financial organizations offering credits by assigning them ratings online. These evaluations make it possible to measure the trust placed by users in these establishments. The borrower can thus, at first glance, compare the confidence index attributed by his peers.
Finally, as soon as one subscribes to a bank loan, in the majority of cases, the bank or the banking organization can impose application fees at the opening of the loan. These application fees include the analysis of the documents submitted by the borrower and all the administrative procedures to be carried out. These fees can be compared by the borrower. For consumer credit, it should be noted that many banking organizations include the processing fees in the APR or do not offer them during a consumer credit. Of course, it all depends on the amount and the duration.
How to compare a consumer credit
Several elements make it possible to compare a consumer credit. Consumer credit can be an affected loan , such as an auto loan, which concerns the purchase of goods that are often predefined. But consumer credit can also provide access to a sum of money, without the sum being allocated to a specific good. It is thus possible to buy computer equipment, household appliances, to face an exceptional situation. This loan is less financially consequent than a traditional loan and therefore the duration is often much shorter. The operation of consumer credit is however the same as for these usual credits and its characteristics are defined in article L-311-1 4 ° of the Consumer Code. The important thing being: a loan must always be repaid. Three main elements can be chosen for an effective comparison: the duration, the amount and the age of the borrower. The price comparator will help to make a first selection by making a macro comparison.
The duration gives an idea of the commitment over time and helps create the repayment schedule. Depending on the APR, the borrower repays fixed monthly payments staggered regularly over a period. Thus, the price comparison first asks you to select a duration. This duration represents the time that you will take to repay your credit. The amount is also requested, it is important to give an exact amount and to define this amount in advance, by carefully assessing your needs. If the age is requested, it is because of your repayment capacity. The higher the loan, the more an advanced age could be a brake. Just as a very young-age will denote that you are still a student for example and will challenge the organization that may require a guarantor.
The advantages of the credit comparator
It allows you to identify the relevant proposals within a large set of offers and to select them upstream using identical criteria. It is sometimes difficult to get a comparison if one of the criteria is significantly different when addressing each organization individually. The comparator allows a healthy comparison based on common criteria.
The comparator also allows you to obtain a list of organizations which, even if it is not always exhaustive, represents the majority of market players. Provided with this list, the borrower can easily identify a list of companies whose interest he can subsequently study individually.
Consumer credit comparators must also be able to provide expertise in their field. Favoring a site specializing in a specific area may be the right choice, a comparator also offering a newspaper, blog or documents complementary to the theme will prove to be a plus. As consumer credit is a real financial and personal project, it is important to be able to read and learn about the subject before really taking the leap.
Finally, the credit comparator makes it possible to modulate the loan criteria very appreciably in order to find exactly the amount and the duration necessary for the chosen project. In addition to helping find a financial organization, it helps the borrower to plan ahead and concretely visualize how the operation will take place. The borrower can easily consider several scenarios and assess what will best suit his own situation.
Most consumer credit comparators are there to help consumers get an idea of the market, to rule out suspicious offers because they are too easy to access or too cheap and offers that are too expensive. The comparators also make it possible to constitute an image of the project and to constitute a time diagram of the repayment (duration of the loan, amount, visualization of a schedule). Credit comparators are the first stone of a project, before moving on to the stage of micro-selection or selection in detail. Fortunately, the credit comparators offer directly on their site the link to the financial organizations and banks offering the credits. The borrower can directly make his first requests online by clicking on the link.
Once a certain number of suitable organizations have been selected, the next step remains to meet directly with the right interlocutors within these organizations and to continue the comparison oneself on other criteria, more secondary but just as essential. For example, the repayment without charge, the possibility of buying back the loan, the credit report are just as many elements which constitute the credit contract and which will be decisive during the last phase, before choosing his organization. Ensuring that the rate is fixed and not variable or revisable can also be part of this phase where the offer is analyzed in detail. If the rate is revisable, it is a matter of verifying that this rate is capped, that is to say that it cannot exceed a certain amount.
It is these little details that will make the difference in the home stretch, between two organizations that will make a similar proposal with the same APR. These last elements could also be part of the negotiation with the organizations and will make that you will obtain the best offer of the market. A consumer credit can indeed be negotiated and discussed. And finally, it is also the relationship that you can maintain and develop with the interlocutor dependent on the financial institution, his listening skills and also the trust that you can place in him that will ultimately make all the difference.