Find the most suitable online credit house for your needs
When you have a project in mind but not the money to carry it out, it is common to want to opt for a loan. Now there are many online credit houses offering great deals to finance your dreams. We take stock of the different types of credit available and help you find the ideal online credit house for your project.
When a loan is taken out, the lending institution makes a sum of money available to the borrower, which the latter will have to repay. When we have a project in mind but not the finances to carry it out, two options are available to us. Either save until time to have enough money and therefore postpone the project, or borrow the necessary amount to make the expense immediately. Thus, the credit allows the borrower not to delay his purchase.
The different types of credit
If you do not want to postpone your project and you have decided to borrow money from a financial institution, it will be useful to know the different types of loans that exist in order to select the one that will be most suitable. to your project.
Among the various loans, there is the amortisable loan, which is the most common form of borrowing. It can be a type of consumer credit, a fixed rate loan, or a variable rate loan. At each maturity, the borrower repays both part of the borrowed capital and interest.
Modular credit, on the other hand, offers the subscriber the possibility of changing his monthly payments, upwards or downwards. It is even possible to postpone one or more monthly payments or to make a partial early repayment. As a general rule, mortgage loans offer this possibility to the subscriber.
The adjustable rate credit, also called variable rate credit, has an interest rate that will be indexed to an index and can move up or down. However, the variation of the rate can sometimes be capped compared to the initial rate. We will then speak of a capped rate. Changing the interest rate can impact the repayment term or the monthly payment, or both in some cases.
Another form of credit exists, although it is more intended for professionals and not widely used by individuals. This is the loan with constant capital repayment. The principle of this type of credit is to repay the same amount of capital at each maturity. As interest is calculated on the outstanding capital, the total amount due (reimbursed capital + interest) gradually decreases over time. This credit offers the advantage of having a lower overall cost compared to a fixed-term credit of the same amount and the same duration.
The fixed rate credit with progressive maturity is a credit not to be confused with that at adjustable rate. With this type of credit, the maturity is increased by a certain percentage each year to allow for amortization. It has the advantage of allowing the borrower to obtain lower monthly payments at the start of repayments. On the other hand, you should know that at the same interest rate, it will be more expensive than a loan with a constant maturity.
There are other types of credits called consumer credits. Personal loan, assigned credit, revolving credit, rental with option to purchase or even free credit are part of consumer loans. These relate to various financial transactions, but never in connection with real estate. Consumer loans allow the purchase of consumer goods such as a vehicle, a trip, a new television, etc. The loan amount must be between US $ 200 and US $ 75,000 and the repayment term will always be greater than three months.
Choose your credit house online
In recent years, many websites have offered borrowers to make credit simulations online. Very practical and fast, these simulators allow the borrower to know if it will be possible for him to borrow money since the simulator takes into account the income of the Internet user but also to choose the most suitable type of credit. to his personal situation.
This feature offers the user the advantage of being able to choose the online credit house that offers the best rates but also to have a first contact with the different online credit houses. Once the offer has been established by the latter, the borrower can ask to obtain an appointment directly at the financial institution of his choice, or to finalize his request directly on the internet if he does not deem physical contact necessary. . Do not hesitate to use the credit comparators, you are sure not to miss out on the best offer.