Perform a credit comparison: We explain everything to you.
Throughout our lives we may need to borrow money, whether it is to buy a car, buy a house, carry out work, or even to finance personal projects such as travel or a wedding. Indeed, recourse to credit is used more and more because the rates are always more and more interesting, and we do not always want to dip into our savings, if we have them. There are a large number of different credits and a multitude of players in the market offering these credit offers.
Thanks to credit comparisons, we no longer need to spend hours studying the offers on the internet, nor increasing the number of appointments in bank branches. The credit comparison is therefore our best ally to save time and to find the best credit offer in a simplified way. The comparison is quick, easy and free.
The credit comparison: How does it work?
Many credit companies exist in the market, offering different offers. It is therefore important to compare credit offers in order to find the most interesting for you, and the one that will best meet your expectations and your needs. Loans, depending on their nature, can be granted by traditional banks, credit institutions, but also by companies present on the Internet, specializing in consumer credit.
There are also several credit formulas, depending on your projects:
- Auto and motorcycle loans
- 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 credit offers, which you can view thanks to your credit comparison.
In order to obtain a credit comparison, you must use a comparator, which is a tool dedicated to the comparison of credits of all kinds. All you have to do is enter several pieces of information in the comparator to obtain the offers. You will be asked for the following information:
- The nature of the credit (car loan, mortgage loan, personal loan, etc.)
- The amount you want to borrow
- The duration of the loan
- Some information about you and your professional situation.
The credit comparison tools are variable, you can make different comparisons:
- Calculate your monthly payments: In a few clicks, quickly assess the amount of monthly payments you will have to repay
- Define your purchasing capacity: Estimate the maximum amount of the good that you can buy and thus determine the amount of your future loan.
- Calculate your debt ratio: Calculate your debt ratio based on your current income and charges.
What to compare?
Several criteria must be taken into account and compared to choose your loan thanks to the credit comparison:
- The interest rate of the loan
- The duration of the loan
- The cost of insurance
- The total cost of credit
The credit comparator allows you not only to save time but also to save money, thanks to the credit comparison carried out. One of the essential criteria in choosing a loan is its overall cost, which will be calculated using the APR, a rate that includes all costs relating to the loan. The comparator allows you to make credit comparisons, and compare the cost of several credits online, in order to opt for the cheapest credit.
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.
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.
Your credit comparison will allow you to compare the essential points of your future credit:
- The Annual Global Effective Rate (APR): it gives a view of the total cost of credit, taking into account interest, application fees as well as insurance.
- Bank charges: They vary from one bank to another, some banks will charge administrative fees, and other banks will offer them to you.
Banks may also have some advantages such as a free bank card, or preferential rates in certain stores or on certain services.
The credit comparison also allows you to compare the advantages of each loan and each bank or credit organization. For example, 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 downwards or upwards. 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.
Insurance is also an important element of your future credit, and it is also possible to carry out an insurance comparison online, via an insurance comparator. Depending on the type of credit desired, the bank or lender may ask you to take out compulsory insurance.
How to carry out a credit comparison?
In order to compare the different offers for your credit, all you have to do is enter in the loan comparator tool, some information about you and your project, namely:
- The type of loan desired,
- the amount of credit desired,
- The purpose of the loan
- 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 comparator 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 credit offer, all you have to do is apply for a loan, which you can usually do online. The bank or credit institution will ask you to provide certain supporting documents, such as a photocopy of your identity document, your last pay slips, proof of address, your last tax notice, as well as your last bank statements .
Your guarantees must be solid to obtain your credit, that is to say, you must have a stable job, good and regular income, have good savings capacity, and not be in the bank of United States . The bank or lender will also verify that you have not exceeded your authorized overdraft.
Once your credit application is sent to the chosen 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 credit offer, with a lower amount, and a longer credit duration.
In the event that your 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 full amount will be paid to your account in one go.
Do not hesitate to compare the offers, the credit comparisons are free and without commitment, and will allow you to find the rare pearl. So to your keyboards!
As a reminder, a credit commits you to repay it. It is therefore necessary to check your repayment capacities before committing yourself.