Banking and consumer credit: comparative credit organizations
Find in our article and our video everything you need to know about loans and personal loans. Discover the different types of consumer loans as well as our advice on how to choose your credit, our recommendations on the purchase of credits and our regularly updated comparison of credit offers.
The different consumer credits
Whether you do not have enough savings for an expense or you do not want to draw in your investments, many consumer loans exist. Consumer loans are loans of a minimum amount of 200 euros and a maximum amount of 75,000 euros, spread over a period of 3 months minimum.
Consumer credit: the appropriated appropriation
Affected loans are loans related to a given expense, the best known of which are work-related loans or car loans. Note the strong growth of the lease with an option to purchase at the expense of conventional car loans in connection with the acquisition of a new car. In the third quarter of 2018, the Banque de France highlights the vitality of the leasing sector, driven by automobile purchases and up by 28.7% compared to the second quarter of 2018. This growth in lending has been confirmed ever since. several years already.
Consumption credit: personal loan or personal credit without proof
A personal loan is a loan not tied to a specific expense. The borrower is, therefore, free to use the amount of his credit as he sees fit. This type of loan tends to be maintained, production is relatively stable in recent years.
Consumer credit: revolving credit or revolving credit
According to the latest analysis of the Bank of France on recent trends in consumer credit (3rd quarter 2018) “the growth of consumer loans to individuals continues primarily driven by revolving loans, whose growth annual becomes positive after several quarters of decline. It should also be noted that “the growth of leases, driven by car purchases, is still lively while the increase in the outstanding amount of depreciable loans slows somewhat over a year.
Our advice before subscribing to a consumer credit
Consumption credit: check your contract and the cost of your credit
Consumer credit is not necessarily easy to understand. Make sure you understand the operation and price of credit before signing anything. A credit has 3 distinct elements to identify:
- capital (sum borrowed);
- the interests ;
- fixed costs (fees, insurance, etc.).
Do not take the following mandatory statement lightly: “A credit commits you and must be repaid. Check your repayment capacity before you commit. In any case, if you do not do it, since the Lagarde law, the financial institutions are they in the obligation to do it since they are required, before the signature of the contract, to check the solvency of the borrower.
Choose a reliable credit organization that complies with regulations
Consumer credit is highly regulated in order to protect the individual who subscribes to this type of credit. Opt for an actor who respects the regulations in force. The lender must provide the future borrower with a standardized fact sheet that describes the characteristics of the credit to which the individual wishes to subscribe.
This card is very useful since it will allow you to easily compare two credits between them. Note: To compare the cost of two credits, especially if their duration differs, use the APR (annual percentage rate of charge) which takes into account all mandatory fees.
When signing the contract, make sure that it includes the box at the top of the sheet, which reminds you of the essential characteristics of the loan:
- type of credit;
- loan amount, maturity and repayment duration (for personal loans);
- credit rate, expressed in the form of APR (annual percentage rate of charge), which includes all the mandatory costs of the credit transaction (interest rate, application fees, etc.);
- the total cost of credit, with and without insurance.
The withdrawal period of a consumer credit
For any offer of consumer credit, the borrower has a right of withdrawal of 14 days that allows you during this period of time to return to your commitment, without reasons. To do this, complete the specific form provided with your contract and send it by registered post with acknowledgment of receipt to the lending institution. Attention, for the credits affected, this period is reduced to three days if the borrower requests the immediate delivery of the financed property.
Credit Redemption: Our Tips for Reducing Debt
Credit repurchases allow you to group all your credits into one to facilitate the management of your accounts, with a single monthly payment, with a single organization, and possibly to lighten your monthly payments. Several organizations, in addition to credit-granting organizations, can offer you this option.
You can, therefore, apply to your bank or another authorized financial institution. After studying your file, if this organization accepts you as a customer, you will be more indebted to him alone. During the negotiation of the repurchase agreement, the paying agency will propose:
- a single loan;
- a single rate (which can be fixed or variable);
- a new (single) schedule;
- a new refund (single) flexible according to your capacity and your needs.
The repurchase of credit sometimes offers the last alternative to highly indebted households before passing over the debt distress commission of the Bank of France. Indeed, when you subscribe to a repurchase of credit you have not stuck anywhere. However, the redemption of credit is not a loophole. It does not release you in any case from your debts.
Never be persuaded by a direct seller by phone or email without comparing the institutions and rates: before consolidating your credits, you must be sure that you opt for the most suitable solution.