Consumer credit at the best rate

Obtaining credit at the best rate is not easy given the many offers on the market. There are, however, many tools to help you. Read

1 140 149
users helped by

Consumer credit at the best rate

There are several types of consumer credit and for each of these consumer credits, you will be faced with multiple offers, each including its own interest rate. Thus, it is important to understand its particularities in order to choose the most interesting offer, with the lowest possible interest rate.

Among the consumer credits that will be offered to you, you will find 3 main types of credits:

  • Affected credit which is entirely dependent on the purchase of a particular property.
  • The personal loan which confers free use of funds to the beneficiary
  • The revolving credit whose use of funds is free and which has the particularity of automatically renewing itself according to the repayments made by the borrower

Once you have identified the credit that corresponds to your needs, you will then have to select an offer whose interest rate will be as attractive as possible.

Why should you choose the best possible rate?

The interest rate of a loan represents the cost of a loan. The higher the rate, the more expensive the loan will ultimately cost you. It varies according to the banking establishments and the loan offers. It is also dependent on the usury rate, defined by the Bank of United States, which is a limit that market interest rates cannot exceed.

Since the interest on a loan is calculated according to the amount that remains to be repaid and the interest rate of the loan in question, it will be more interesting to opt for a loan including a low rate, with a repayment period as short as possible.

Variable and fixed rates, what to understand

Some loan offers will include fixed rates, others will include variable rates. It is important to understand what this means before committing.

For example, a personal loan and / or an affected loan are fixed rate loans. This means that at the time of the loan, you know the amount borrowed, the loan rate, the repayment term and the amount of monthly payments. Thus, by calculating the difference between the sum borrowed and the sum of all the monthly payments to be repaid ultimately, you know the overall cost of your credit.

Conversely, a revolving credit, or revolving credit, will be offered to you with a variable rate. Thus, at the time of the loan, you know the amount of the authorized loan (which is renewed according to your repayments), the minimum amount of monthly payments (you can supplement this amount if you wish to repay the loan early), and the rate applicable at the time of signing. This rate is subject to change at any time, for better or for worse. In the event that the rate of your current credit changes, the banking organization is required to notify the borrower, who can refuse this change within 30 days. In case of refusal, the credit ends and the borrower must make the final repayment of the loan, in several monthly installments or in one go, as he wishes.

Be careful, in the context of a variable rate loan, it is therefore impossible to know the real overall cost of the loan in advance since it will depend on the interest rate and the repayment period, criteria likely to vary.

Help to find a consumer loan at the best rate

In your search for consumer credit at the best rate, you can rely on:

  • Online credit comparators: Online comparators are designed to help you find the best rates on the market. They have complete databases, constantly updated, and listing all the offers on the market. These offers are ranked from the most attractive to the least attractive (based on the interest rates offered). The offers offered by comparators also include promotional offers.
  • Online credit simulations: Credit simulations are available on the websites of online comparators but also directly on the websites of banking establishments via credit simulators. It is a significant tool when looking for a loan since it allows you to project yourself into it. Thus, you will be able to obtain visibility on the cost of a loan and its rate, by adjusting the amount borrowed, the amount of monthly payments, and the duration of the repayment.
  • A brokerage agent: A broker specializing in credit or an intermediary in banking transactions is available to assist you in your research. He will be there to help you with the procedures related to the credit application and will also play a negotiating role with the credit institution. Most often, soliciting a broker will not cost you anything since they are paid by the lenders and not the borrowers.

Namely, to further reduce costs:

  • 3 to 4 times a year, banking establishments offer promotional offers. If your request is not urgent, it may be worth the wait.
  • As part of a consumer credit, insurance is not compulsory. If the lending organization you want to apply for anyway, do not hesitate to benchmark insurance on the market, even if it means taking out insurance from an establishment other than your lender.
  • Administrative fees are not always included in the offers that are offered to you. It is important to ask for the amount of these fees. They are sometimes negotiable if you prepare your file upstream.
  • Beware of too attractive rates: These offers are generally granted on loans repayable in 1 or 2 years, which will require a substantial contribution.