Things to check before subscribing ...
The first item to check when comparing credit offers is the total cost. Indeed, it is the sum that you will pay in the end. This amount includes the repayment of the capital, the calculated interest and any administrative or insurance fees ... If you can only check one item, this is it!
To help you make your choice, all of our classic credit comparison rankings are based on the total cost of credit . It is this element that will allow you to classify the offers on the market, from the cheapest to the most expensive.
The APR includes the nominal rate, the administrative costs, as well as insurance if they are compulsory. It must be indicated on all credit offers (contract but also advertising, catalog, poster, website, etc.)
Often a fairly low rate is put forward: it is the call rate ! This rate is there to catch your eye and it usually comes with draconian conditions that make it inaccessible to most: a very high minimum credit amount often associated with a short credit term.
For example, an attractive APR of 1% for loans starting at 12,000 us dollars over 12 months minimum will give monthly payments over 1000 us dollars! A credit for big budgets ...
The administration fees are very different from one establishment to another. They are rarely negotiable (unlike home loans) but more often required in a bank branch than on the Internet.
Up to 1% of the credit amount, the administration fees are "reasonable". At more than 1%, look elsewhere!
Conventional loans are generally taken out for major purchases: a car, work ... The higher the amount, the longer the repayment period will be. You have to plan better, beforehand, what can happen to you. This is why you must first find out about your rights and duties in the event of a problem (postponement of a monthly payment, cost of late payment, etc.).
Even if it comes at a cost, it is important to take out credit insurance because the “savings” on this kind of service is never a good calculation. These insurances can cover illness, long-term sickness leave and death.