How to get a cheap personal loan?
Do you have a great project in mind but don't know how to finance it? Why not turn to the personal loan? Packed with benefits, this type of consumer credit helps you finance your sweetest dreams without breaking the bank. Discover our tips for obtaining a cheap personal loan.
The personal loan, what is it?
In United States, the personal loan is a type of consumer credit. Its characteristic is that it does not finance a particular project, but that its purchaser can finance what he wishes, without justifying his purchases. It is therefore an unallocated loan. The personal loan is a credit agreement contracted between a borrower and a financial institution over a certain period: generally from a few months to a maximum of five years. The personal loan is by definition even an immediate credit without proof .
What does the personal loan finance?
It is not intended to finance a specific purchase but to allow the borrower to meet all expenses relating to both unspecified consumer goods and services such as costs resulting from family events, medical costs, education costs, taxes, renovation costs, travel, etc. In practice, the funds are paid into the account of the borrower who has them as he wishes. However, different personal loans exist depending on the needs of the borrower: personal loan for work, personal loan for leisure, personal car loan or personal cash loan. It will be essential to discuss projects with your advisor so that the latter can direct you to the personal loan that best suits your needs.
Personal loan: what the law says
The law protects the borrower. The rate applied for a personal loan is higher than an affected loan obtained in a bank but lower than for a loan taken out at a point of sale (intended for the purchase of a good or a service, also called “Installment purchase financing” or “earmarked loan”). Be careful, however, the acceptance rules are often stricter, the borrower not having to justify the destination of the borrowed money. Up to $ 75,000, this type of loan is subject to the consumer code and allows in particular an early repayment without fees, unlike the mortgage (penalty of 3% maximum).
Get a cheap personal loan
Unlike other loans, you do not need to build a solid case to access a personal loan. Suddenly, you can finance your purchases, your unforeseen events, your projects, and even your trips without having to justify the object of your loan request. With the advent of the internet, getting a personal loan today is easy. The Internet makes it possible to reduce the operating cost of businesses and therefore to offer ever cheaper products. This is particularly the case of personal credit organizations which offer very attractive loans to allow the financing of your projects.
But beware, it is nevertheless essential to compare the offers to obtain a cheap personal loan . Competition has pushed lenders to offer so-called low call rates for personal loans. Especially since compared to revolving credits or affected credits, the interest rate of a cheap personal loan remains more advantageous, at least in most cases.
With a cheap personal loan, there are no bad surprises. Since the interest rate is fixed, your monthly payments remain the same throughout the loan. In addition, the repayment period is known in advance. Some financial organizations even offer their clients to defer one or two monthly payments per year in the event of a hard blow. Conversely, it is also possible to settle your personal loan if finances allow.
Compare to get a cheap personal loan
The watchword, you will understand, is: compare. Many lenders have online comparison tools, without obligation. Some sites even directly display personal loan comparison tables and rank the most active brands in the personal loan market.
And do not forget that as soon as you meet the conditions for granting a personal loan, you can play competition between the different financial organizations. You can then send your request to different banks to receive several loan offers and choose the most competitive. The bank's contractual offer must contain the amount of the credit, the fixed or variable interest rate, the cost of insurance, the constant or flexible maturities as well as the costs of filing the file. This offer remains valid for a period of 30 days during which a lender cannot go back on the loan conditions he offers. The law then proposes a period of two weeks so that the borrower can think about the offer. Beyond this period, you are then committed and will have to repay your personal loan or have it redeemed in the case of loan redemptions.