How to choose your consumer credit
Consumer loans are an excellent solution to finance a personal project: acquisition of a vehicle, renovation work, life events, etc. Here are some tips for choosing the best personal loan.
Choose the loan that suits your needs
First, choose the type of credit that best meets your financing needs. Remember that the 3 main types of credit are:
- Affected credit: this is a loan that can only be used for a specific expense (acquisition of a vehicle, renovation work, etc.);
- Unallocated credit: in other words a loan without proof, which can be assigned to any project. You can therefore dispose of it as you wish;
- Revolving credit: a reserve of money that you can use when you want, and that is replenished when you pay it back.
In the event that you wish to acquire a new or second-hand vehicle (automobile, scooter, motorcycle), or else carry out real estate renovation work, it is preferable to opt for an assigned loan. In fact, this type of credit generally offers the lowest rates, and offers more security since it is only activated if the transaction is carried out.
If you have projects to finance outside your vehicle and work (for example a life event, your children’s studies, a trip, etc.), you will have to turn to unallocated credit. The rates are, however, slightly higher than the appropriations allocated.
In the event that you wish to face unforeseen and / or unexpected expenses, revolving credit proves to be the best solution.
Once you have determined the type of loan you need, you need to choose the credit institution (s) to apply for. There are many on the market, mainly banks and specialized companies. To obtain the best conditions, it is important to compare the consumer credit offers that exist on the market.
Some establishments are known to charge the best interest rates, and one would be tempted to go there with your eyes closed. Be careful because it is rare for an establishment to offer the best rates across its entire credit range. In fact, the rates can vary depending on the type of credit requested, the duration of the loan and the amount.
Most credit institutions offer simple and quick simulations on their website. Be sure to analyze the following:
- The proposed interest rate
- Additional costs, such as booking fees
- The cost of borrower insurance
Check the quality of the lender
Before subscribing to an offer, it is important to carefully check the quality of the lender. Indeed, some organizations can offer loans when they do not have the right, or even engage in fraudulent activities! Consumer loan scams are more and more frequent, and fraudsters are very well organized: fishing tactics, false websites etc.
A quick and easy way to check the quality of the lender is to consult ORIAS, the official register of insurance, banking and finance intermediaries. In fact, all credit institutions are obliged to be registered there and to publish their registration number. For that, it’s very simple: go to the ORIAS website and enter the registration number in the search bar. If the lending institution is properly registered, you will find key information there: company name, address, activity, etc.
On most credit institution websites, this registration number is published in the “legal notices” section. This is particularly the case of the site that displays Cream Lending well its registration number in the 3rd paragraph. If the lender refuses to communicate it to you, we advise you to go your way!