Compare the current rates of personal credit offers, listed with our partners, to find the cheapest loan. And follow our advice to take out the type of consumer credit best suited to your needs.
The barometer of consumer credit rates - September/October 2022
While the economic situation has been marked by high inflation in recent weeks, what is the “weather” for consumer credit rates ? After stabilizing in the spring of 2022, they have started rising again since July . Rates are thus nearly half a point higher than last year at the same time.
However, the activity of credit organizations is dynamic: the amount of new loans granted (excluding LOA) over the January-June period is up by more than 11% over one year. Main driving force: personal cash loans . “This is a sign of tensions on the purchasing power of households, explains Sergio Monteiro, founder of the comparator Checkmoncredit.fr. They borrow to cover expenses (health, studies, repairs, bills, etc.) that they could previously have financed without resorting to credit. Revolving credit has also been very successful for several months.
But faced with the uncertain economic situation, credit organizations and banks could adjust certain parameters in the granting of loans to guard against the risk of non-repayment: extend the repayment period, be more demanding on the guarantees provided by loan applicants..
What is consumer credit?
Consumer credit allows you to borrow from 200 euros to 75,000 euros over a repayment period of more than 3 months. There are several types of consumer credit. The best known are the personal loan, the assigned credit and the revolving credit.
The personal loan
The personal loan is a consumer credit that the borrower can freely use, without having to justify his or her assignments. It is sometimes called credit without proof or cash credit. If the customer has no accounts to render, the credit institution can nevertheless charge a higher rate for this type of loan than for an affected credit, for example.
The assigned credit
Unlike the personal loan, the assigned credit, as its name suggests, is a consumer credit taken out to buy a specific good or pay for a service defined in the contract. Thus, car, motorcycle, work, marriage, etc. loans are part of this category. Their granting is therefore conditional on the issuance of a certificate on the use of the funds (most often an invoice).
As a result of this distinction, for the same amount and duration of repayment, credit institutions generally offer lower borrowing interest rates when the borrower justifies the use of the loan. According to credit organizations, the assigned loan most often makes it possible to borrow a larger amount than a personal loan without proof.
Revolving credit
Also called "revolving credit", revolving credit takes the form of a cash reserve, easily mobilized once subscribed, in which it is possible to draw according to its needs , partially or entirely. The borrower does not pay interest on the total amount available, but only on the part he has actually used.
The counterpart of this atypical mode of operation is an interest rate that is often close to usury . This credit is therefore aimed at good managers, because its high rate and the fact of being able to draw regularly from a reserve of money makes it dangerous for someone who does not often monitor their accounts. Since early repayments are free, it is preferable to get out of debt as soon as possible, in order to limit the cost of borrowing. In addition, the establishment or organization that offers revolving credit must also present a classic depreciable credit offer; therefore compare the two, because there is less risk of over-indebtedness with a personal loan.
A VERY long day
The rental with option to purchase (LOA) or "leasing" is a credit contract with the possibility of "raising the purchase", that is to say, to acquire the property that is rented . Mostly used for cars, it can nevertheless be used for any type of good. The tenant is not the owner of the object for which he is paying rent until he has exercised the option. However, maintenance and insurance costs are at his expense.
The contract is generally established for a period of 24 to 72 months, but the holder can choose to opt for the purchase before the term, respecting a minimum rental period.
Leasing is ideal for those who wish to have a new car (for example) and to change it regularly, in return for a fixed cost every month, while having the freedom to buy it if they wish. . The LOA should not be confused with the long-term rental (LDD), in which it is not possible to buy the object of the contract.
Free credit or “several times without charge”
Despite its name, free credit is not always consumer credit. To qualify as such and benefit from its legal regime, the repayment period must be greater than 90 days . However, most “three times free” payments are spread over a maximum of three months. In this case, it is in fact a cash facility granted by the merchant. The only condition: to have a bank card, the numbers of which will be provided to make the direct debit. So beware of virtual cards; some organizations refuse them.
Beyond these 90 days, the free credit becomes a consumer credit whose interest is not paid by the buyer, but at the expense of the seller, or the credit institution itself. The merchant agrees to bear this cost to facilitate the sale. The customer can indulge himself immediately, without having to save or take out a loan with interest.
Instant mini-loan
More and more players are offering “mini-loans”. Presented as nudges and quick solutions to finance a small unforeseen event, these loans are distinguished by low amounts (generally between 100 and 2,500 euros) and above all a very short repayment period (often 3 months maximum). But these characteristics are precisely why they are not considered as conventional consumer credit. Result: they are not framed by the regulations and escape the protective framework of consumer credit .
The bank overdraft
When your bank account has a negative balance , it is said to be overdrawn. This situation may be provided for in the account agreement, in the event of an authorized overdraft . Otherwise, credit transactions will be rejected and the account will not go into negative. It sometimes happens that the bank acts on a case-by-case basis, depending on the client, and allows certain payments to pass if it knows that the situation is exceptional.
Although the bank charges debit interest, called agios , this is an overdraft facility , not consumer credit. Thus, the overdraft cannot exceed three consecutive months, in which case the credit institution must then propose a loan offer to its client to help him spread out his repayments and thus avoid a risk of over-indebtedness.
What funding to use according to your needs?
How to choose the right consumer credit?
To choose financing
Good credit is the one that best meets your needs. However, it will almost always be considered that a depreciable consumer credit will be preferable to a revolving credit or even to an account overdraft. Indeed, if you are thinking of borrowing, you surely know for what purpose: purchase of a vehicle, financing of work or occasional need for cash. The amount of the consumer loan starting at 300 euros, even if you need a boost, it is better to turn to this type of credit. Its interest rate being more advantageous than those of a revolving credit or an overdraft (close to usury ) and its simpler management, thanks to a constant amortization, it presents less risk.
Finally, if you ever repay several consumer loans, it would surely be wise to restructure them first before taking out a new one. With a repurchase of credits , the final monthly payment can be considerably reduced, thus increasing the monthly purchasing power of the borrower. In fact, taking out another loan may not be as restrictive, or even become useless.
Take advantage of promotional offers wisely
Once fixed on your type of credit, it is not a question of subscribing one in the first credit institution come. It is important to compare the different offers , in particular through this page, in order to obtain the best possible loan. Credit organizations regularly offer promotional offers, sometimes starting with an APR of 0.10% ! Be careful, however, to respect the requirements set by the advertiser to take advantage of these advantageous rates: often, the repayment period is reduced, which increases the monthly payments. The amount of credit is also regulated, ranging from 4,000 USD to more than 20,000 USD.
Reduce the cost of your consumer credit
Finally, now that you have chosen a loan, here are some final recommendations to reduce the cost. First of all, only take out borrower insurance if you think it is really necessary! The organizations systematically offer one, but it is not mandatory . However, the higher the amount of credit, the more it is recommended to ensure your back. Remember that you are not obliged to choose the insurance offered by the credit institution. Indeed, if you offer him a contract with at least equal guarantees, your lender will have to accept it.
Moreover, even if it is tempting to repay low monthly payments, in order to maintain a certain purchasing power, this only increases the cost of credit. Adapt the monthly payments as well as possible to your income, to repay your loan as quickly as possible, and make early repayments if you have the possibility.
Why compare consumer loans before subscribing?
Before signing a loan offer, it is essential to find out about the loan conditions to which you can claim (rate, repayment period, etc.). This requires an inventory of the market and the comparison of lending organizations. However, you do not need to go to the agencies of each organization. Whether Cofinoga, Carrefour Banque, Cetelem, Cofidis..., they provide online simulators . These allow you to check, by essentially adjusting the duration of the loan, that the loan will be financially sustainable.
Do not forget to also make a request to your bank. Your adviser, knowing your potential qualities as a manager, will perhaps be better able to judge your ability to repay.
How to take out a consumer credit online?
Once the simulation phase is over, it's time for the credit application itself. carefully Complete the detailed questionnaire . You describe your project, your income and your personal situation: Are you the owner? Do you have a co-borrower? Do you have dependent children? Organizations can give you an answer in principle at this stage. However, this is subject to the adequacy of the information provided with the supporting documents that you must send later. In the process, the organization publishes a loan contract.
Next, you need to read the contract carefully and make sure you understand each paragraph. If this is the case, sign and return the loan contract accompanied by the required supporting documents (identity card, pay slip, tax notice, RIB, estimate in the event of an affected loan, etc.). The return of the documents and the contract can be done by post or in a dematerialized way, from an online customer area.
From this signature, you have 14 calendar days to waive the credit. Once this withdrawal period has expired - it can be reduced on request - the loan amount is credited to your account. Funds are most often made available by bank transfer.
Early repayment and extension of maturity
In the context of consumer credit, prepayments , which allow you to settle your debt more quickly than initially expected, are always allowed and often free. However, it may happen that the lender applies penalties. In this case, these must be indicated in the loan agreement.
Alongside prepayment, credit institutions also frequently offer the deferral of monthly payments . It allows, in the event of an air pocket in its finances, to shift in time some deadlines. The deferral is time-limited and often cannot be activated until several months after the borrower has taken out the consumer loan.
The purchase of consumer credit
If you have several consumer loans, one for your car, one for renovating your kitchen, etc., it may be advantageous to have them redeemed by the same credit institution. Only loans between 200 and 75,000 euros , with a minimum duration of 3 months , can be restructured. The repurchase of credit makes it possible to obtain a single interest rate for all the loans, and thus to save money by reducing the monthly payment. However, this also has the effect of extending the duration of the credit, and therefore the payment of interest. Nevertheless, if the financial context has evolved favorably in the meantime, the operation will be beneficial for the borrower, who sees his situation simplified.
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