- 1 Quick credit: Not analyzing your ability to face the loan
- 2 Quick Credit: Don’t Compare Between Different Personal Loan Offers
- 3 Quick credit: Focus only on the fee
- 4 Fast credit: Do not take into consideration the possibility of consolidating your credits
- 5 Quick credit: Not reading the general conditions or fine print
Do you want to finance a personal project with a quick credit? Do you want to order a personal loan? This article summarizes in 5 points what you absolutely must take into account. 5 very useful tips to choose the loan that will perfectly suit your profile and your needs.
Quick credit: Not analyzing your ability to face the loan
When you have a project and you want to get a loan to finance it, it is very important to evaluate your borrowing capacity beforehand. That is, your ability to return it without difficulty, even in the event of unforeseen events.
To do this, you can start from a simple calculation. It consists of adding your monthly income and subtracting your monthly expenses, including the amount of the return of the new loan that you want to contract.
Monthly income – monthly expenses * = rest to live
* including repayment of the new loan.
Then, you have to compare the result of the “remainder to live” with the sum of your monthly income. Generally, it is considered that the remainder to live must be at least 30% of the monthly income for a single person and 50% for a couple. .
However, this is minimal. Therefore, it is always better to leave more margin in relation to these ceilings. This margin will allow you to face any unforeseen event. Keep in mind that this rule can be taken into account as long as your monthly income is at least 1250 euros.
This calculation will also allow you to estimate the ideal duration of your credit. In fact, lengthening its duration will allow you to reduce the monthly repayment to suit your budget. However, be careful that the maximum periods are established by regulation based on the amount borrowed.
Quick Credit: Don’t Compare Between Different Personal Loan Offers
There are many offers for fast loans, so it is important to compare and evaluate the right offer for you.
Comparators allow you to get a view of the market in a few clicks. They also highlight the strengths of the different offers.
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To compare, always start with APR. This is an “all-inclusive” rate that allows you to efficiently compare all personal credit offers, regardless of their formula.
Quick credit: Focus only on the fee
When you receive a credit offer, it is important to compare all the elements of the offer. Beyond the loan rate, look at the annual percentage charge rate. As stated above, this is the “all inclusive” rate. Therefore, it includes all the costs of your loan application.
For example, having to pay application fees is not necessarily negative. In fact, if you have two loan offers with the same APR, you will ultimately pay the same for your credit, whether or not it includes administrative fees.
Stopping only at the rate could also prevent you from seeing other benefits offered by some lenders. For example, offer a reward to all borrowers who have paid off their loan correctly throughout the term. It consists of a sum of money equal to part of the cost of the loan, which is returned to the borrower at the end of the loan.
Beware of scams! A licensed lender may never ask you to pay fees before the loan is granted, for example, to review your application.
Fast credit: Do not take into consideration the possibility of consolidating your credits
If you already have credits in progress, it may be interesting, as part of a new credit application, to study the possibility of consolidating all your credits.
A credit grouping consists of joining 2 or more credits into one.
A credit consolidation can allow you to obtain better rate conditions on the new credit that meets the existing ones, or modify the conditions of your existing credits.
For example, you have two credits during a 36-month period. You want to make a new loan and consolidate the whole with a repayment of a longer period. The final cost will be higher but the proportional decrease in the monthly payment obtained through the grouping will allow you to more easily manage your monthly budget.
Quick credit: Not reading the general conditions or fine print
Although the regulations strictly and precisely regulate consumer credit, It is absolutely necessary to read the general conditions linked to the contract. These must be provided to you through the credit intermediary or the lender.
They will allow you to fully understand the conditions before making a loan.
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You will discover, for example:
- You have the right to renounce your credit within 14 days after its conclusion.
- You can reimburse early in whole or in part at any time.
- That late fees are limited by regulation.