Consumer credit allows consumers to obtain a loan between $ 200 and $ 75,000, which must be repaid in more than three months. Widely used in many situations (purchasing a vehicle, financing work, a trip, etc.), consumer credit is issued by banks and various credit organizations. However, it is better to find out what you are exposed to before subscribing, and especially compare the offers to find the cheapest rate.
What is consumer credit?
Consumer credit is a loan of between $ 200 and $ 75,000, offered by banks and credit organizations, for individuals. As the name suggests, it is generally used to make a major purchase: vehicle, work, travel, marriage … or to deal with an unexpected event. It can be an assigned credit (work loan, car loan, etc.), or unallocated (personal loan without proof).
It must be a private expense, not related to the borrower’s professional activity. Only the purchase and construction of real estate cannot be financed by consumer credit.
The consumer will then have to repay monthly, with interest, the consumer credit from which he has benefited. The rate of this interest is framed by law: the APR cannot exceed the rate of usury fixed by the public authorities.
It is also advised that the monthly reimbursement amount does not exceed 33% of the salary so that the consumer can meet other daily expenses and does not find himself in a situation of over-indebtedness.
For an amount, less than 3000 $, the consumer has three years (36 months) to repay his consumer credit. For a credit of less than 6000 $, the duration increases to 5 years. If it is higher (up to $ 75,000), then the duration can extend up to 7 years (84 months), or even 10 (120 months).
Where to find consumer credit?
It is possible to take out consumer credit with two types of organizations: banks (traditional banks but also online banks), and specific organizations (Bank, Good Finance, etc.).
The vast majority of consumer loans are taken out by specialized organizations such as Good Finance. Some even specialize in certain types of credit, such as consumer credit. Their rates are among the most advantageous on the market and make it possible to find the cheapest credit.
The customer can also go to his bank hoping to obtain an attractive rate to reward his loyalty. Now, more and more online banks are also offering consumer credit. They can constitute an attractive alternative, in case the client is not satisfied with the offer of his usual banker.
There is a better solution to compare the different offers on the market and find cheap credit: our credit comparator. Available on the internet, our comparator provides a ranking of the most attractive rates on the current market, particularly from credit organizations. Discover below our credit comparator, which also provides immediate response in principle :
It is also possible to take out consumer credit through a seller such as a dealer or through large retail stores.
The stages of obtaining credit
It is not possible to obtain consumer credit in a few hours, or in a few days. At least, this is generally not the case. Indeed, you must first go through several crucial stages:
- Constitution of a file: the organizations generally require to provide a file including, in particular, the wages of the consumer. This file will be used to apply for credit from the organization.
- Examination of the file. The organization then examines the client’s file and decides, depending on its creditworthiness, whether to grant it consumer credit or not.
- Customer’s choice. The consumer then has 15 days to accept the proposal. He can completely decide to refuse it and not to sign a contract.
- Withdrawal period. The consumer still has 14 days to reflect from the signing of the contract, the withdrawal period, to decide to withdraw. In some cases, the lender may make part of the funds available, but this is not an obligation.
These steps are usually always the same for banks and credit institutions and can be time-consuming.
Good to know: the electronic signature, which is growing more and more both in dealerships and on the internet, allows you to get money from consumer credit as quickly as possible and reduce the withdrawal period to 7 days exactly. Postal deadlines are indeed eliminated since the whole process is carried out remotely. Supporting documents can also be downloaded directly.