Finding cheap credit is one thing; receiving a positive opinion is another. Everything you need to know to identify the cheapest consumer credit actually accepted immediately. This article deals with the search for a cheap consumer credit and therefore excludes real estate projects. The story is on angsecyp.org
Where to look for cheap credit?
Cheap credit often rhymes with online credit. These specialists in consumer credit redouble their solutions to offer ever faster and easily accepted credit at the best rate. They differ from banks, which are more specialized in mortgage lending, but also from more traditional players (dealers, insurers).
Cheap credit = best APR rate
The APR rate has been designed to allow the consumer to easily identify the cheapest credit.
Mentioned on all credit offers, this rate includes both interest and the cost of any administrative fees. It actually represents the real cost of a loan. It should never be forgotten that a cheap loan under similar conditions (amount / duration) is always the one with the lowest APR rate.
Using a comparator, the good idea
The use of a comparator perfectly meets a search for cheap credit. We will see in a second step how to use a cheap loan proposal online to compete, and thus ensure that you get the best possible rate.
Our comparator guarantees:
- The choice of all projects (personal loan, car, work, small credit, etc.)
- A classification based solely on the APR rate
- An immediate response in principle at the best rate for rapid credit
- The ability to interview at least each of the top three organizations
Each file receives an evaluation without commitment in real time. In case of refusal of the request at the best rate, it is possible to request the organization classified 2nd, then that classified 3rd.
This system makes it possible to increase the chances of obtaining a cheap online loan, at the lowest tailor-made rate for each file. A positive credit opinion is indicated with an acceptability rate> 50%. A refused request, on the other hand, is reported with a rate <5%.
Cheap Credit Online: Compare APR Rates
To understand the interest of finding easy and cheap credit and not to be convinced by any advertising, the most effective is to carry out a simulation.
So let’s use our comparator to get the best rates for the same loan, in the form of a personal loan of $ 10,000 over 48 months.
|Comparison of personal loan rates $ 10,000 over 48 months||Fixed APR rate||Monthly fees||Total cost of credit|
|Organization n ° 1||2.90%||220.73 $||595.04 $|
|Organization 2||3.90%||225,04 $||801.92 $|
|Organization n ° 3||5.70%||232,82 $||1175.36 $|
– rate statement made in October 2019, classification likely to change over time –
Cheap credit ranked first costs $ 580.32 less than the third in our ranking. The gap increases even more when you go down in the ranking. The organizations compared are, however, all big names in consumer credit. No need to go much further to understand the value of a comparator.
Cheap credit refused: the reasons explained
These are always cheap credit solutions that invade TV spots or advertising displays. It is important to be wary of the APR rates from advertisements. These attractive rates are in fact most of the time associated with short repayment periods, implying monthly payments that are inaccessible for the vast majority of French people.
Finding cheap credit is pointless if it is turned down. Our goal is to offer fast credit (immediate response) that is truly accepted. There are therefore no unpleasant surprises once the agreement has been received, provided that the documents correspond to the situation indicated in the questionnaire. We are leaving false promises to advertisers.
Cheap credit: the most classic traps
In consumer credit there are 2 main traps:
1 – Ultra-selective ultra-cheap credit
Promotional rates are mainly associated with short repayment terms (12 or 24 months). But almost no one borrows – or is accepted – over 12 months, because the monthly payments are too large. The organization can then initiate a commercial logic by proposing a longer repayment duration, adapted to the borrower’s situation. An alternative proposition at a rate that is often funny.
2 – The blow of the “fake” online comparator
Some sites offer rankings that look like comparisons, but actually only show the credit agencies that guarantee the most profits. Our comparator offers a ranking based on only the best APR rate.
Only a request for a credit of 4000 USD or less combines the rate and the chances of receiving a rapid online credit advice, since the classification concerns revolving credit.
A cheap credit thanks to the couple of duration / monthly payment
To get a loan at the best rate, try to choose the shortest possible term. Indeed, the longer the credit is to be reimbursed, the more interest there is to pay. This is the factor that most influences the cost of a loan. We therefore advise to be extremely careful to find cheap credit.
It will nevertheless be wary not to reduce the duration too much, at the risk of ending up with a too high monthly payment. When the amount to be repaid each month exceeds a debt ratio (what is it?) Greater than 33%, there is a good chance that the credit will be refused.
Play the balance between rate and duration
Take an example of an 8000 euro personal loan over different durations, in order to clearly see the differences in monthly payments and APR rates.
The 24-month credit costs $ 271.80 in this example, but involves repaying $ 344.70 every month. The 60-month offer is very expensive, since the interest amounts to $ 905.80. However, the monthly payments are $ 148.43.
The main thing is to find the combination that best fits your repayment capacity. The shortest duration is, however, generally more advantageous with a view to finding cheap credit.
Cheap credit: a quest for the best rate
The law has recently provided a more firm framework for the management and distribution of consumer credit. In particular, it defined a benchmark rate: the APR (Annual Global Effective Rate).
This rate helps identify a cheap credit from another to avoid, without having to look any further. The APR includes all of the credit costs. The rate is thus mentioned on any prior offer of credit, as well as in any form of advertising (poster, press, internet).
It is made up of interest on the credit and all other ancillary costs, such as, for example, administration fees. The APR is fixed in most cases and only revisable in the case of small revolving credit. This distinction is due to the slightly different mechanics of this type of loan.
The importance of playing competition
No secret, the best way to get cheap credit is to compete. Problem: going to raise all the rates for all the terms with the largest credit organizations can quickly prove tedious.
There are really many organizations, especially since you have to think of banks and possibly builders or insurers in the context of an auto loan. Craftsmen can also offer works credit, adding another actor to the list of potential lenders.
Cheap credit: method of comparing offers
Our comparator has been designed to allow easy credit. Once the best rate has been pre-accepted online, all that remains is to go to “physical” competitors (concessions, banks), on the basis of the rate obtained from the largest organizations.