Consumer credit over 10 years: what you need to know
Do you have a great project in mind but not the finances to carry it out? Do not panic, it is possible to use a consumer credit over several years. Find here all the information to obtain a consumer credit over 10 years to achieve your dreams without breaking the bank.
What is consumer credit?
A consumer credit is a loan allocated to a borrower by a financial institution so that the latter can finance a project: new car, wedding, vacation etc. The project must not be linked to the professional activity of the borrower and must not concern the purchase or construction of real estate. Governed by the consumer code, the consumer credit will not exceed 75,000 US dollars. The borrower repays the sum made available to him in installments.
The different types of consumer credit
The first step before getting started is to know the different types of consumer credit in order to choose the one that will best suit your project. Know that there are at least three types of consumer credit:
The personal loan is a credit that allows you to finance what you want without having to justify yourself. Please note, this credit must be repaid within five years maximum. It has the advantage of allowing the borrower to have his money as he sees fit and to help the realization of important projects without having to dip into his savings. If you opt for this type of credit, be sure to compare financial institutions with each other. Indeed, the rate of this credit is freely set by the lender and the duration of the credit, the amount of sums granted as well as the mode of repayment vary from one bank to another.
If you have a clear idea of the project you want to finance (purchase of a car, installation of a kitchen, etc.), you can opt for an assigned loan. An important feature of affected credit, credit and sales are inseparable. This means that you only start repaying your credit after the goods have been delivered or received. If the sale does not take place, then the credit is automatically terminated. The total amount of this credit must be between US $ 200 and US $ 75,000.
Revolving credit, on the other hand, is financed by a bank and allows you to use the money made available without proof, as you see fit. After using all or part of your revolving credit, you repay monthly payments. Once the amount has been repaid, you again have usable capital. This is why this type of credit is called revolving. The main advantage of revolving credit is that it allows you to have very quick access to your cash reserve.
The steps to obtain a consumer credit over 10 years
To finance your project, it is essential to follow a few steps. The first will consist in choosing the type of loan most suited to your project. Then, it will be necessary to assess its borrowing capacity using a credit simulation. It will also be necessary to think about comparing the rates of the consumer loans, because these can vary from one establishment to another. Finally, it is important to learn about the regulations in force.
Taking out consumer credit is a long-term act, especially if your goal is to obtain consumer credit over 10 years. Before issuing a loan offer to the borrower, the financial institution must provide him with a standardized pre-contractual sheet which contains all the information relating to the proposed loan. This document indicates the identity of the lender, his address, the type of credit offered, the amount, the duration, the total cost, the annual percentage rate of charge, the applicable law, etc. All this information is included in the consumer credit contract. The borrower must also be informed that he has a withdrawal period of 14 days before signing the consumer credit over 10 years.
Can we anticipate the repayment of my credit?
If the contract so stipulates, it is quite possible to consider the partial or total early repayment of your consumer credit. Be careful, however, if the partial reimbursement exceeds 10,000 US dollars, compensation may be due. However, this compensation will be capped at 1% of the loan amount or 0.5% depending on whether there is more or less than a year before the end of the contract.
Finally, in the opposite case, if financial difficulties arise in the life of the borrower, the latter can have recourse to a magistrate to obtain a staggering of the monthly payments of his consumer credit over 10 years or a temporary relief of interest. of the loan. If this grace period is capped at two years, it can relieve the borrower in the event of temporary difficulties.