Cheap credit: ask for your loan cheaper
What’s the point of paying too much for your credit? There are as many rates on the market as credit and for the good of your portfolio it is important to find a cheap loan, ie a loan at the best rate. Read http://ebook-blog.org for a critique
We are going in this article to share with you our tips for finding a cheap loan. You need more money than lenders and a simple comparison can sometimes save you several thousand USD in minutes.
Why apply for cheap credit?
Everyone can have financial worries and when faced with it and have an immediate need for money, we rarely have time to think. As soon as we have a problem or need to finance a major purchase, we usually rush to our banker to apply for a loan. But if we do not take the time to analyze the situation well, we risk losing big by borrowing in a hurry. Indeed, the cost of the loan can be very high and this can greatly reduce our purchasing power.
Imagine that by borrowing 10,000 USD you have to repay 13,000 USD. This could cause you serious problems and if you are unable to pay your debts, you may be stuck at the FICP and once you are registered in the Personal Credit Reimbursement Incident File, you will not be able to to contract new credits. Without new credit and insufficient income, you will have trouble paying your previous debts.
Even worse, you will end up filing an over-indebtedness file with the Banque de France. To avoid all this, it is necessary to take the time to properly analyze your situation before borrowing. Always apply for credit based on your resources, borrow the bare minimum and find the cheapest credit in the market. But what is a cheap credit? This is a loan at a very low rate and with low monthly payments.
Choosing the right credit
First of all, there is one thing you need to know: not all types of financing are equal in terms of rates. If you want to find the best rates, it will be necessary to choose the type of loan to contract, for example avoid the revolving credits and privileged credits allocated for specific needs such as the purchase of a car or work.
The most reasonable offers are those that will allow you to meet immediate needs. With this type of loan, you can get financing from 200 USD to 75,000 USD, with a repayment term of more than 3 months.
The assigned loan
The assigned loan is one of the least expensive credits. It is used to finance specific purchases and expenses: purchase or repair a car, pay training fees or install new equipment for your home. In addition to being an inexpensive loan, the affected loan is also safe.
If the sale or the expense has not taken place, it would necessarily result in the cancellation of the loan. The beneficiary must return the funds to the Bank and the latter will refund the monthly payments already made. However, it will be necessary to provide proof of expenses during the application for example the invoice of a vehicle as part of a credit car / motorcycle.
Personal loan (or credit without a cheap proof)
If you do not want to justify your expenses, it would be better to opt for the cheap personal loan also called credit without proof,… This is a depreciable formula, from an amount of 1,000 USD to 75,000 USD and which are repayable over a maximum of 120 months.
This type of loan is advantageous because the rate is fixed and it is granted relatively easily it is on the other hand a more expensive than allocated funding, but it must be emphasized that if the loan does not allow to finance all and n ‘ Whatever, the unassigned personal loan can be allocated to the type of expenses you want.
How to recognize a cheap credit?
Although there are already tools available to find cheap credit, it remains essential to know what distinguishes a cheap credit from other formulas. Here are some indicators to compare the different offers that will be submitted by the banks.
When you take out a loan, ask your banker to provide you, not the nominal rate, but rather the APR or the annual percentage rate of charge. Moreover, banks are required to provide you with this information. This rate includes all interest and other expenses such as commissions and fees. It is important to use the APR to determine the true cost of your loan. The APR includes: application fees, intermediary fees, guarantee fees, opening and accounting fees, insurance premiums.
The amount of monthly repayments
To determine if it fits in your budget, try to assess the monthly payments. If they are too high in relation to your resources, it could mean that you will not be able to repay or that you will have difficulty paying your debts at the end of each month. This is why we recommend that you think carefully before applying for a loan.
The repayment term
The repayment period also counts when it comes to cheap loan. Always try to refer to your resources to know if the monthly installments and the duration of refunds proposed are in your means. If you have sufficient resources and do not want to have long-term debts, it is better to choose short-term loans. Otherwise, the long term would be more appropriate. But remember, the longer the repayment period, the more interest there is to pay.
Although not all banks require the payment of a fee, this aspect is not to be overlooked. If your institution requests the payment of a processing fee, analyze the situation first. In some cases, the low-rate credits with fees are no more interesting than the low-rate offers but without any fees.
This insurance is mandatory when you take out a loan of great value, as in the case of a home loan. The insurance reassures the bankers, because when you do not manage to repay your debts, it is the insurer who takes care of them the time that you find your financial equilibrium. But the subscription of an insurance can be also required. If this is the case, see if insurance premiums would not increase your monthly expenses.
How to apply for a cheap credit?
It is not because it is a credit at a very low rate that there is no procedure to follow to apply for it. Like any other credit, there are conditions to fulfill as well as supporting documents to allow the study of your application by the banker.
The cheap consumer credit is awarded only to borrowers who meet the following conditions. First, you must be of age, the perfect age would be between 25 years and 50 years. Then you have to have stable and sustainable incomes. A permanent job would be ideal and reassure the lender. However, if your resources are not regular, guarantees or sureties could tip the balance in your favor. And the most important thing is to have the right profile of borrower, that is to say, not to be banned banking, not to be stuck Bank of France and not be over-indebted.
For the cheaper loan application, you need some documents such as a copy of your ID card, proof of address, bank statements, tax notices and pay slips. However, other documents may be required by your bank. Make sure you know that your file is incomplete and sent back to you.
Cheaper for loyal customers
In some cases, you can find a lower rate at your bank. However, the offer is not open to everyone. You have to fulfill certain conditions in order to enjoy it. On the other hand, we want to emphasize that this is more of a favor than an obligation for your bank. Thus, she can totally reject your request for cheaper credit.
To take advantage of a credit at the best rate from your bank, you must first be a loyal customer: have opened and used his bank account for at least 10 years. In addition, you must have a good borrower profile. This removes any chance of getting cheap credit for insolvent customers who have already had a refund incident. Bank bans and FICP securities will not be able to obtain low-rate credit from their bank.
Our solutions for credit at a better rate
Now that you have all the information about cheap credit, all we have to do is show you the different solutions to find the best rate for your financing. Several alternatives are available to you, according to your needs and your current situation.
Inquire and compare
To find the cheapest credit on the market, you have to start by hunting information. Check with several banks to find out about the conditions, procedures and repayment terms. Pay attention to every detail ! Once you have collected the maximum of information from several banks, you will be able to compare them by analyzing the various indicators which we spoke a little higher (APR, monthly payments, interests, expenses of file,…). Once you have found the best offer, you can start the process by building your file. You can also use our comparator.
Take advantage of the evolution of technology
Visiting several banks to learn is effective, but we must admit that it is also very tiring. This is a significant waste of time and a crazy expense of energy. Imagine running around the city looking for the lowest rate!
To avoid wasting time, you can take advantage of technological change. Know that in 2019, all banks already have websites. So you just have to find the official platform of each bank and you will only have to contact the managers. Often, you have to fill out a small online form. It is also possible to learn by making a few phone calls.
Call a broker
It is almost impossible to find the best deal by demarcating all banks in the country. If you do not have the time, you can ask a broker to help you. The latter acts as an intermediary between the borrower and the lending institutions. He can search for the best offer for you.
Through his experience, credibility and influence, he can negotiate your case with banks. Depending on what you are looking for, the broker can help you find interesting rates and offers with reasonable processing times.
In addition, the broker can also guide you in the process and it will help you build your file while ensuring that you do not omit any supporting documents. In return for this service, it must be remembered that the remuneration of a broker is quite high.
Use online credit simulators
As mentioned earlier, the services of a credit broker are quite expensive. If you have small resources and want to find the cheapest credit, then you can use completely free tools: online credit comparators that are very efficient and fast. In just a few clicks, you get a list of the most attractive offers.
Some comparators even allow an online simulation to get an overview of the total cost of your loan. For that, it is enough to fill a form and to validate. In a few moments you will get a list of the best rates. However, beware because not all comparators are reliable.
There are some false comparators who are only there to promote certain banks. To recognize a real comparator, you can request that he provide you his registration number with ORIAS.