Ready to eat: best rates and tips to take advantage – Consumer loan

The consumer loan is a loan allowing you to carry out all projects (car / motorcycle loan, personal loan, work loan, small loan, loan repurchase) outside real estate. It is offered by online credit agencies, banks, some insurers and even auto manufacturers. Let’s identify the best consumer credit for each project. We will then see where to obtain, thanks to the credit comparison service, a favorable opinion at the best APR rate.

A consumer loan for each project

A consumer loan for each project

The consumer loan designates all credits not relating to a real estate project. Offered under favorable conditions by credit organizations, the consumer loan can also be issued by a bank, an insurer or even a car manufacturer. Any credit over $ 200 and / or reimbursed in more than 90 days is a consumer loan in the eyes of the law.

The maximum amount of a consumer loan is generally set at $ 75,000. As for the duration of the credit, it is often between 12 months and 84 months (7 years), although some exceptions exist. Here is the list of consumer credits and their main characteristics:

Type of credit What there is to know
Personal loan
  • Credit without proof of use of money
  • Amount: $ 1,000 to $ 75,000
  • Duration: 12 to 60 months (sometimes longer)
  • Fixed APR rate very variable from one organization to another
Revolving credit
  • For a small loan generally less than 4000 $
  • Credit easier to obtain than a personal loan (fewer supporting documents)
  • High revisable APR rate
  • Cash reserve available at any time (express transfer or credit purchase)
Mini credit (-200 $)
  • High APR rate
  • Refund within 90 days maximum
  • Immediate transfer possible but sometimes subject to significant additional costs

You should also always base your APR on a consumer loan to differentiate a cheap consumer credit from another less attractive.

The APR rate identifies the best loan

The APR rate (annual effective annual rate) is associated with each consumer loan proposal. The state protects the consumer, forcing lenders to clearly display the total – and actual – cost of their credits. The APR rate includes the interest on the loan, but also includes all possible additional costs (administration or opening fees, etc.). Our credit comparator always displays the APR rate as a priority: it makes it possible to classify loans in a 100% honest manner. The APR rate is fixed in most cases, which implies that the conditions of the consumer loan cannot change during the repayment period. This APR rate can be revised only in the case of revolving credit.

Consumer loan: the various credits

Consumer loan: the various credits

The conditions of a car loan are not the same as those of a simple need for money, hence the importance of understanding the characteristics of each consumer loan. Let’s review all the consumer credit solutions available on our credit comparator.

The car / motorcycle loan

Auto credit is a classic consumer loan. The conditions are however different for a new and used car loan, or even an LOA formula (rental with option to buy). ready for consumption

New car loan, what conditions?

The new car loan is the consumer loan dedicated to the financing of any vehicle (car, motorcycle, scooter, etc.). It is generally offered at favorable APR rates by credit organizations, provided that they can justify the purchase.

New car credit in brief:

  • Usually always provide vehicle order form to lender
  • Amount: $ 1,000 to $ 75,000
  • Duration: 12 to 84 months
  • Fixed APR rate
Statement of the best new car loan rates Best APR rate from our comparator Monthly fees Total cost of credit
$ 10,000 over 48 months 2.89% 220.69 $ 593.12 $
$ 15,000 over 60 months 3.00% 269.26 1155.60 $
$ 20,000 over 60 months 3.00% 359.01 $ 1540.60 $

 

Used car credit

Used car credit works on the same principle as for new, except that the rates are slightly less attractive.

When it is impossible to provide proof of purchase, as in the case of a purchase from an individual, it is then necessary to turn to consumer credit without proof such as personal loan. A large part of the sales of used vehicles is made between individuals, explaining why it is much more difficult to justify its purchase from a credit organization or a bank.

LOA, credit at an uncertain rate

We have seen that it is thanks to the APR rate that it is possible to determine the interest of a loan. However, in the context of a LOA loan, the APR rate is impossible to calculate. Leasing with an option to buy is particularly attractive due to its commercial potential. The manufacturers actually offer to rent the vehicle, for an acceptable monthly rent, by offering to buy it at its end. An LOA contract includes several obligations (duration of rental, monthly payments, amount of the take-back option, total purchase price of the vehicle) but never communicates the total cost of all costs (maintenance outside the contract, repairs, wear, etc).

Some individuals may have unpleasant surprises when returning the vehicle. Also, a certain amount must be provided if the choice is for a final purchase at the end of the contract. It is generally better – and cheaper – to apply for a traditional depreciable car loan rather than plunging into the unknown with an LOA solution.

Personal loan, for a need for money without proof

The personal loan is a consumer loan without proof of use of funds. It is in great demand due to its rather flexible nature. All credit organizations offer personal loans at more or less favorable APR rates. This classic credit is regularly offered to promotional offers, integrated into our comparator.

It is important to use a credit comparison tool to apply for a cheap personal loan. Our different rate statements indicate significant differences in APR rates between several requests for personal loans, under the same conditions. It is common to find a cost of credit twice higher for a credit 5000 $, between two best known organizations.

Personal credit in brief:

  • Credit without proof of use
  • Amount: $ 1,000 to $ 75,000
  • Duration: 12 to 72 months
  • Fixed APR rate
Statement of the best personal loan rates for 2019 Best APR rate from our comparator Monthly fees Total cost of credit
5000 $ over 24 months 3.60% 220.30 $ 574.40 $
$ 8,000 over 36 months 3.60% 220.30 $ 574.40 $
$ 10,000 over 48 months 3.30% 224,13 $ 758.24 $

 

The works loan

You must provide proof of completion of the work provided by the craftsman to the lending organization to benefit from a work loan. Our statements of APR rates for works credit indicate that it is sometimes much more attractive than a simple consumer loan without proof. When the borrower is unable to provide proof, he can turn to a personal loan. The cost of certain works is sometimes very high, explaining why the durations associated with the work loan increase in some cases up to 10 years.

The work loan in brief:

  • You must provide proof of completion of the work (purchase order or invoice) to the lender
  • Amount: $ 1,000 to $ 75,000 (more in some cases)
  • Duration: 12 to 120 months
  • Fixed APR rate
Statement of best loan rates Best APR rate from our comparator Monthly fees Total cost of credit
$ 10,000 over 48 months 2.89% 220.69 $ 593.12 $
$ 15,000 over 60 months 2.70% 329.81 830.88 $

Revolving credit, a small loan easy to access

Revolving credit is a small consumer loan, the amount of which rarely exceeds $ 4,000. Easier to obtain than any other consumer loan, this small credit provides a reserve of money, available at any time. The principle consists in offering the possibility of drawing on the reserve at any time, by requesting a transfer or by using a payment card associated with the contract. The main credit payment offers from department stores (Fnac, Boulanger, Leroy Merlin, Auchan, Carrefour, etc.) actually correspond to revolving credit.

The APR rate for revolving credit is revisable and not fixed, which indicates that it may be different each time it is reused. The renewable consumer loan is easy to obtain and reuse (immediate transfer possible), but also relatively expensive. Regularly offered at an APR rate of around 20%, it is more advantageous when it is reimbursed over a short period. It is a small consumer loan adapted to manage the unexpected or finance a high-tech purchase. It is not recommended to use it to repay another loan or to get out of a difficult financial situation.

Revolving credit in brief:

  • Always offered for a small credit request (request for a loan of money less than $ 4000 on our comparator)
  • Rates are generally higher than for any other consumer loan
  • Duration: 12 to 36 months maximum for less than 3000 $, 60 months beyond
  • Revisable and non-fixed APR rate

Is buying back loans a consumer loan?

The repurchase of credits is intended to get out of a situation of over-indebtedness. The principle of grouping credits is based on the fact of collecting several credits in a single monthly payment. The interest of the approach is to clarify a situation which has become uncontrollable, to finally reimburse without ending every month in the red. It is particularly interesting to compare takeover offers when the total amount is large.

How to get the best consumer loan?

How to get the best consumer loan?

The best consumer loan is usually owned by consumer credit agencies. It is very rare for a bank or any other player to offer more advantageous credit than that offered by specialists. There are many advantages to organizations:

  • Advantageous APR rate
  • Immediate policy response and quick final opinion
  • Ability to electronically sign the contract in most cases

Connected to the main organizations, our credit comparator is able to find the organization offering the best rate for each project. Above all, it indicates where the request will be accepted, avoiding confronting a refused credit.

Our example illustrates a request for a consumer loan for an amount of $ 10,000 over 48 months. The best organization is not inclined to accept the request, but the second, Bankate, is more welcoming. The APR rate is very close to the best, and the percentage of acceptability (> 80%) indicates that the request will be accepted if the supporting documents match.

Ready to eat: some advice

You should not stop at the simple APR rate when applying for a consumer loan, but make sure you can repay it in good conditions. A very low rate associated with a credit of $ 10,000 over 12 months will imply, for example, monthly payments over $ 1000.

It is important to know how much to borrow, and for how long. The calculation of the remainder after all the expenses have been deducted (rent, invoices, insurance, telephone, food expenses, etc.) from the income gives an idea of ​​the repayment capacity. In any case, the organizations will refuse any request likely to place the borrower in a complicated situation.

Getting a first favorable opinion without commitment online is a solid first base. Using a credit comparison tool allows you to identify the best APR rate, the benchmark indicator for calculating the cost of consumer credit. This avoids accepting a credit offered by a dealer or his bank before realizing that it would have been accepted at a much better APR rate online.

Finally, any consumer loan is accompanied by a withdrawal period of 14 days. This time for reflection is fixed by law. The right of withdrawal generally applies by returning a slip provided for this purpose within the time limit. To go further, we must look at the law of consumer credit.

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