Cheap consumer credit

There are many consumer credit offers and it is important to have some knowledge in order to find cheap consumer credit. Read

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Cheap consumer credit

A consumer credit can finance many projects of all types. However, the offers are numerous and it is important to have some knowledge in the matter in order to find a cheap consumer credit.

What is a consumer credit?

A consumer credit is a loan intended for financing that excludes those related to real estate. It is mainly used to buy goods or services of various types. There are several categories of consumer credit, the three main ones being: affected credit, personal loan and revolving credit. The repayment period of such a loan must be a minimum of 3 months and generally cannot exceed 7 years. The amount can be between 200 and 75,000 US dollars.

With a consumer credit, the borrower has a withdrawal period of 14 calendar days from the date of signing the loan contract if he ever changes his mind. Likewise, he can repay his loan in advance at any time during the contract. However, this last possibility may generate additional costs which must be specified by the lender in the credit agreement.

Take stock of your situation

If you want to obtain cheap consumer credit, you will first need to take stock of your personal and professional situation. If you ever find yourself in a stable situation (permanent employment for example) and you have a high and regular income, it will be much easier for you to obtain an advantageous offer. Before applying for credit, calculate your debt ratio which is the ratio between your monthly charges and your income. There are easy-to-use online tools that will help you do this easily. Know that it will be very difficult for you to obtain a bank loan of any kind if your debt ratio exceeds 33%. This is a threshold beyond which most banks or establishments specializing in consumer credit will not accept the granting of a loan, except in the case where the remainder to live on (the capital available to a household each month after paying its fixed charges) is very high and sufficient for a higher debt.

Also take stock of the amount of monthly payments you can afford. Remember that a loan must above all be adapted to your budget. Thus, sometimes it will be more judicious to subscribe to a more expensive consumer credit in order to obtain monthly payments that will be more suited to your financial situation.

Do not hesitate to carry out credit simulations online. This will allow you to tailor the chosen loan to your situation as well as your needs. Note that if you want to pay low monthly payments, you will have to extend the term of the credit which will increase the total cost of your loan. If, on the other hand, you think you can pay higher monthly payments, this will reduce the duration of your contract while making your credit cheaper.

Compare consumer credit offers

If you want to get cheap consumer credit, it might be a good idea to compare the different offers on the market. To do this, you can go around the banks and credit agencies yourself, use a broker or even use online comparators. However, the services of a broker can be more useful in the context of a mortgage, online comparators remaining a free and fast solution in the context of a consumer loan.

The credit comparators will allow you to have an overview of the different proposals in order to find the one that will be the most advantageous for you. The basic tool for comparators is the APR (annual percentage rate of charge). It is the best indicator of the total cost of a loan since it includes all fees, remuneration or commissions of any kind, related to a loan (not just the interest rate). Therefore, if you want to obtain a cheap consumer credit, referring to the APR remains the best solution since it will allow you to compare the different offers on the market as well as possible. However, do not forget that the APR indicated on online consumer credit proposals remains indicative. The annual percentage rate of charge that you will get on your personalized loan offer may be somewhat different since it will be adapted to your situation, the type of credit and the length of the contract you choose.

Thus, finding cheap consumer credit is quite possible in the case of a stable financial situation and if you take the time to compare the different offers on the market. Online comparators can be a quick and easy solution to help you spot the offers that will best meet your expectations.