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 to find a cheap consumption credit.
What is a consumer credit?
A consumer loan is a loan for financing that excludes those related to real estate. It mainly allows you to buy goods or services of various types. There are several categories of consumer credit, of which the three main ones are: the affected credit, the personal loan and the revolving credit. The repayment term of such credit must be a minimum of 3 months and can not generally exceed 7 years. The amount can be between 200 and 75 000 euros.
With a consumer credit, the borrower has a withdrawal period of 14 calendar days from the date of signing the loan agreement if he ever changes his mind. Likewise, he can repay his credit early at any time during the contract. However, this last possibility may generate additional costs which will have to be specified by the lender in the credit agreement.
Take stock of your situation
If you want to obtain a cheap consumption credit, you will first of all have 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 high and regular incomes, it will be much easier for you to obtain a favorable offer. Before applying for credit, calculate your debt ratio, which is the ratio between your monthly expenses and your income.
There are online tools, easy to use, that will allow you to do it easily. Be aware that it will be very difficult for you to obtain a bank loan of any kind if your debt ratio exceeds 33%. It is a threshold beyond which most banks or institutions specialized in consumer credit will not accept the granting of a loan, except in the case where the remainder to live (the capital available to a household every month after paying its fixed charges) is very high and sufficient for a higher debt.
Also take stock of the amount of monthly payments that you can afford to pay. Remember that a loan must first and foremost be adapted to your budget. Thus, sometimes it will be more advisable to subscribe to a more expensive consumer credit in order to obtain monthly payments that will be more adapted to your financial situation.
Feel free to make online credit simulations. This will allow you to adapt the chosen loan to your situation and your needs. It should be noted that if you want to pay low monthly payments, you will need to extend the term of the loan which will increase the total cost of your loan. If, on the other hand, you think you can pay higher monthly payments, it will reduce the duration of your contract while making your credit cheaper.
Compare consumer credit offers
If you want to get a cheap consumer credit, it may be wise to compare the different offers on the market. For this, you can go around the banks and credit agencies, call a broker or even use online comparators. However, the services of a broker may be more useful in the context of a home loan, online comparators remaining a free and quick solution in the context of a consumer credit.
The credit comparators will allow you to have an overall view of the different proposals to find the one that will be the most advantageous for you. The basic tool of the comparators is the APR (annual percentage rate of charge). This is the best indicator of the total cost of a credit since it includes all fees, remunerations or commissions of any kind related to a credit (not just the interest rate).
Therefore, if you want to get a cheap consumption credit, refer to the TAEG is the best solution since it will allow you to compare the best offers in the market. However, do not forget that the APR indicated on the proposals for online consumer credit is indicative only.
The annual percentage rate you will obtain on your personalized loan offer may be somewhat different as it will be adapted to your situation, the type of credit and the duration of the contract you choose.
Thus, finding a cheap consumer credit is quite possible in the case of a stable financial situation and if one takes the time to compare the different offers of the market. Online comparators can be a quick and easy way to help you find the offers that best meet your needs.