Consumer loans: how to get low-rate credit?


For the financing of consumer goods or services (works, for example), the borrower is automatically offered by the bank a consumer loan.
Naturally, the latter will want to minimize the cost of his credit. To do this, he must not miss out on an offer of low-rate credit. How do I find it? What are the criteria that come into play? We help you to see more clearly!

What are the different forms of consumer loans?

What are the different forms of consumer loans?

Before getting to the heart of the matter and discovering how to get a low rate credit contract, it is important to distinguish the forms of consumer loans existing on the market and know their specifics. Among the most commonly offered by banks and credit organizations:

  • affected credit: dedicated to a particular purchase;
  • revolving credit and personal loan: unallocated credits, that is to say that can be used to finance any type of project.

Note: any type of financing, excluding real estate
Any consumer credit is only intended to finance consumer goods (furniture, household appliances, etc.) or services (work, marriage, travel, etc.). It therefore does not concern the purchase or construction of real estate.

Low-rate credit: the art of finding the best offer

Low-rate credit: the art of finding the best offerCredit contract offer: mandatory information

To obtain a consumer loan or a low-rate home loan from a bank, the borrower has different levers. And the best thing is to activate a maximum! Let’s list the main …

1. The comparison

Online, there is no shortage of consumer and real estate credit simulators and comparators. So to speak, each bank makes a simulation tool and / or a credit comparator available to consumers. With these tools, the borrower can estimate the total amount of his future loan in minutes. To compare the offers, it will then be based on the APR (annual effective annual rate). The APR is indeed the reference rate in a credit contract offer. It takes into account all the costs incurred by taking out a loan, such as:

  • the nominal interest rate;
  • guarantee costs (systematic for a mortgage)
  • application fees (not all banks apply them);
  • the cost of insurance.

Note that the bank may oblige the borrower to insure his loan, although under the law, insurance is optional (both for a consumer loan and for a home loan). If it offers insurance at the same time as the credit contract offer, the borrower is free to accept it or to turn to an insurance of his choice. Again, the borrower has a vested interest in comparing.

2. The solid case

Consumer credit and low-rate home loans also rhyme with good records. By that, mean in particular:

  • absence of repayment incident (at least during the months preceding the loan request);
  • existence of a personal contribution.

Faced with a reliable and serious borrower, banks are more inclined to negotiate. If in addition, you have a personal contribution, you can borrow for a shorter period. This will lower the APR! Because indeed, the longer the repayment period, the higher the APR.

3. A fixed rate credit rather than a variable rate credit

Who says fixed rate credit says total amount of the loan known in advance and constant monthly payments for the duration of the loan. For variable rate credit, it is quite the opposite: as the rate changes over time (downward as well as upward), the total cost of credit is enigmatic. Revolving credit is only accessible in this form. It is also the type of credit with the highest APR.

Note: additional info about the mortgage
Like the consumer loan, the home loan can be at a fixed rate or at a variable rate.

4. Credit repurchase

When it makes a loan repurchase, the bank consolidates the monthly payments of the loans in progress to give rise to only one single payment. The objective of the credit repurchase is to lengthen the duration of repayment, and therefore to decrease the amount paid each month. This financial transaction is accompanied by a fall in the APR. It mainly concerns consumer credit and home loans. As with conventional loans, it is possible to carry out a credit buyback simulation online. The idea? You represent the monthly payment that you could get once all of your loans combined.

Credit contract offer: mandatory information

Credit contract offer: mandatory information

The bank has the obligation to include certain information on a credit offer, in particular:

  • the amount of the credit;
  • the total amount due;
  • the total cost of fees;
  • the duration of the contract;
  • the APR;
  • the existence of a withdrawal period (after signing the contract, the borrower has 14 calendar days to renounce the credit);
  • the articles of the Consumer Code relating to the period of validity of the offer and the minimum reflection period.

To obtain low-rate credit and thus lower the total cost, there is no secret: the borrower must above all take the time to balance the offers. If he has something to negotiate with the bank, it’s even better! Before tackling the comparison, take a few minutes to perform a loan simulation, number one in the country for online loans between individuals. Our offer may surprise you!