You have a project in progress, but not the means to finance it? Whether it is for the purchase of a new car, the financing of your next vacation or to carry out work in your home, the personal loan is a significant aid to help you make it happen. But which lender to turn to? Before taking the plunge, it is important to think carefully about your choice in order to find the most advantageous alternative. Here are the things to check before signing up.
The first thing to consider when comparing credit offers is the total cost. This is, in fact, the amount you will pay in the end. Understand that if you borrow €2,000, for example, this is not the final amount to be repaid. The lender will add to this capital: interest as well as any administrative and insurance costs. If there was only one criterion on which to base ourselves, it would be this one. Thanks to this element, you can rank the loan offers from the most expensive to the least expensive.
The APR includes: the nominal rate, administrative fees and compulsory insurance costs. This figure must appear on all credit offers, including in advertisements, catalogs, posters and the bank’s website. In most cases, a rate that is too low is accompanied by draconian conditions making personal credit more expensive.
The total amount of application fees differs from one institution to another. If it’s not a home loan, chances are you can negotiate with your bank. Moreover, some loan offers on the internet make it possible to avoid it. Generally, the application fee should not exceed 1% of the amount of the credit. If you find higher fees, it is not a favorable offer.
In most cases, conventional loans are taken out to finance major purchases. It can, for example, be the purchase of a car, the financing of major works, etc. In practice, the higher the amount, the longer the repayment period will be. In this case, you will have to plan what may happen to you. This is why it is essential to find out beforehand about your rights and your duties in the event of a problem. Here are the points on which you should focus: the conditions in the event of a monthly payment deferral, the cost of late payment, the fees to be paid for an early repayment. Although credit insurance is often included in the offer and can make the bill a little more expensive, this is not always the case. And yet, it is important, even essential, to subscribe to it. What do these insurances cover? Illness, long-term sick leave and death.