Online credit comparison
Today, a multitude of loans are offered by credit organizations: car loan, mortgage loan, work loan, loan repurchase, personal loan ... Burst of information, you often have great difficulty in making the right choice in terms of credit. Fortunately, online credit comparators are there to help you see things more clearly. These credit comparators allow you to get the best credit offers that match your profile. Step by step you will understand how to use them and why online credit comparators are very useful.
What are your needs?
As a first step, it is essential to determine what is your need regarding this request for money.
Do you want to buy a car or replace the old one and you need to find a sum of money for that? Whether this vehicle is new or used, you can take out a car loan.
If you are planning to buy real estate. Whether it is the purchase of a primary, secondary or rental residence, the mortgage will certainly be advised to you.
The work loan allows you to finance the insulation, expansion, renovation or even the decoration of your house or apartment.
Also known as the money reserve, this sum is made available to you each year to finance your projects. However, you are free to use it or not.
Combine all your credits in order to lower your monthly payments by opting for this solution.
Whether it's a travel project, or a wedding, the personal loan is the most suitable formula when your project is well defined.
What information must be provided?
Online credit comparators, which are very numerous today, are often very easy to use and are also very useful. The form to be completed during the simulation consists of several steps.
First, the questions will relate to the nature of your project:
- The amount you need and why
- The desired repayment period
Your situation will then be scrutinized:
- Family and patrimonial situation
- Number of dependents
- Your bank
- Your profession - function and type of contract
- Your income
- Your charges
Finally, all you have to do is complete the last part of the form with your contact details in order to receive offers at the best price and compatible with your profile.
The APR (Annual Global Effective Rate)
When you have a project to finance, several options are available to you: From personal credit to revolving credit, including car or work credit. Depending on your project, the amount borrowed and the duration of the loan, the differences among the rates charged by credit organizations can be very significant. This is why online credit comparators are becoming essential to find the best rate, and thus allow you to make significant savings.
The Annual Global Effective Rate (APR) includes several components:
The nominal rate of the loan: it is used to calculate the interest and is set from the interbank rate, which the lender can itself borrow from other banking establishments.
Administrative fees: they can represent between 1 and 1.5% of the amount of the loan.
Insurance contributions: these are taken out with the lender. These insurances may relate to risks related to death, disability, incapacity for work and loss of employment. Please note, insurance contributions as part of a loan application are not always compulsory.
From now on, credit institutions are obliged to display the APR, the interest rate which indicates the total cost of credit, administration fees, insurance and services included.
As you can see, the APR of a credit offer is one of the important information that will guide you in your choice. By taking into account the Annual Global Effective Rate, you get a true estimate of the overall cost of each loan considered.
The reimbursement conditions
If the APR is one of the key information when you want to take out a loan, it is also important to take into account the repayment conditions offered by the credit organization. In certain contracts only, it will be possible to postpone the due date, to adjust the monthly payments, upwards or downwards or to repay the monthly payments in advance without penalties. For example, a contract may provide that you have to pay compensation to the lender if you repay your loan early. In addition, also make sure that the proposed credit offer mentions the withdrawal period of 14 calendar days after signature.
Putting banks and credit organizations in competition with each other allows you to negotiate the rate as well as better loan conditions. It should also be borne in mind that occasionally, credit organizations set up promotional offers limited in time. These promotional offers carry an attractive interest rate. Thanks to loan comparators, you have the opportunity to compare the proposals of different banks or credit organizations.
The Internet now contains a multitude of tools to prepare the financing of a project. In addition to online loan comparators, you will find many calculators that will help you optimize your credit plans:
Calculation of monthly payments: You will be able to verify that you have the capacity to repay this amount.
Monthly repayment: Your repayment capacity will determine the amount of your loan and the duration of your loan. This amount depends on your monthly income
(Salary, income from movable property, etc.) as well as any charges that you may have (alimony, etc.).
Borrowing capacity: The amount of your loan will depend on the amount you can repay each month as well as the duration over which you want to borrow.
Value of the property: Calculated from your personal contribution and your income, the amount of the property that you can acquire depending on the duration and rate of your credit will be estimated.
Duration of the loan: It will depend on your monthly payments, the amount of your credit as well as the rate at which you borrow.
Amortization table: This is the detailed schedule of your loan. By having your amortization table, you can view the monthly and annual details of your repayments, over the entire term of your loan.
Remaining capital due: You will know how much time you still have to repay.
Overall effective rate: The credit with the lowest overall effective rate will be the cheapest credit.
Notary fees: After taking out a loan allowing you to find the property you need, don't forget that you will still have to pay the notary fees.
Debt ratio: To guarantee good financial stability, it is recommended not to have a debt ratio higher than 33%.
How to proceed ?
As mentioned above, there are so many online credit comparators that it is often difficult to find a reliable comparator. To do this, two possibilities are available to you:
Go to a reputable credit comparison site;
You rely on an online credit comparator that works with reputable credit organizations.
To find the best deals, you are advised not to use a single online credit comparator. It is important to note that the calculations may differ from one site to another. By making multiple comparisons, the results will tell you which credit and financial institution you need. In just a few minutes, these credit comparators will redirect you to credit organizations that can meet your expectations. Please note, even if it is possible to apply for a loan from several credit institutions, nothing obliges an institution to accept it. Your file will only be received if your financial situation allows to support the monthly repayment of the credit. In this case, you should not hesitate to renew your request a few days later because the rates and the selection criteria of the credit organization may have changed.
In conclusion, credit comparators have the advantage of being objective based on real and updated figures. They are for the most part simple cases of use, free of charge and without obligation on the part of the user. Online credit comparators are an essential tool for a savvy borrower. They will not only give you access to a directory of the most competitive proposals but will also give you the opportunity to consult them in detail before making any decision.