Applying for credit online has become relatively simple nowadays. But do not forget to compare the different offers to make the best choice. In order to help you, we realized this file on the different criteria to take into account to compare an online credit.
I. Defining the online credit
A. What is an online credit?
An online credit is identical in every respect to a conventional credit. You benefit from the same guarantees and the same expertise in the processing of your file. In addition, the same rules apply from the legal point of view, such as the contract offer and the withdrawal period. The only difference lies in the possibility of taking out this credit from home. So, no need to move to get funds quickly. Many credit organizations offer this fully dematerialized online credit simulation service.
B. The internet revolution in banking services
Internet has revolutionized global banking systems at all levels. Many homes now have Internet access on their computers or their smartphones. Customers can be in touch with their bank advisor permanently. Indeed, customer services can be reached by mail or phone, and sometimes even on social networks. This is also the case for online loan organizations, which can be reached on all connected media.
C. Make a request 100% online from home
It is now possible to apply for credit online without leaving home. All devices that can connect to the internet can be used. Whether it’s a computer, a tablet, or a smartphone, online credit platforms offer content tailored to the format of the device. In addition, the request being directly transmitted to the credit organization, the policy response is quickly transmitted by e-mail to the user.
D. Make credit from your mobile
Mobile operators provide their subscribers with a fast Internet connection. From a compatible mobile, it is thus quick and easy to apply for credit online. It is especially a simple way to apply for a loan directly after having defined your purchase plan. Whether in a car dealership, a hardware store or home appliances, in a few clicks the request is recorded.
II. How to compare your credit online
A. Defining your financing project
Many projects can be funded through online credit. In order to compare them, you will need to define your project well in advance. There are many projects, and for some it is possible to obtain a preferential rate. To benefit from it you will still need to provide proof.
Whether for work inside your home, or outside, you have the choice. If you decide to hire professionals, take the time to consult the artisans and compare their benefits. If you prefer to do it yourself, do not hesitate to go to DIY stores and make quotes. Take the opportunity to negotiate with the seller a commercial discount on the final price.
For a trip:
We advise you to first consult travel agencies and inquire on the internet about your future resort. This will allow you to refine the program of your trip, and to define more precisely the necessary. If you have in mind to improve your language level, you will find more information in our folder dedicated to how to finance a language trip.
For a wedding :
Once the date of the wedding decided, do not hesitate to consult the rooms in rent around. Also compete with the caterers, this can help you save money. Once the total wedding budget has been established, you can determine the total amount of credit needed to finance it.
For household appliances:
If you want to equip your home with new appliances, it is best to go to a store first. For a large purchase, do not hesitate to negotiate with the seller a discount on devices or a free warranty extension. And if you need financing, you can apply online for your consumer credit.
For a car:
If you want to buy a car, be it new or used, we advise you to try it before you decide. If you need a credit to finance this purchase, we offer you our complete guide on how to compare your car loan.
B. The internet revolution in banking services
Depending on the type of your project, you have the choice between the personal credit assigned or unallocated.
The assigned personal credit:
If you have a need for liquidity to carry out work, or buy a car, you can apply for an assigned personal credit. To subscribe, you will need to provide proof of your project. For example, as part of a work loan, you will need to provide the estimate of a craftsman corresponding to the amount requested. This type of credit has the advantage of having a lower rate than an unallocated credit.
The unallocated personal credit:
An unallocated loan can be contracted without justification for the project to be carried out. But the proposed rate will be higher, so the cost of your credit will be higher. This type of credit, although more flexible, is not the best choice for saving money.
C. The amount of the monthly payments
We advise you to take into account your need for financing and the budgeting of your project and its reimbursement. By playing on the repayment term, you can change the amount of the monthly payment that you repay each month. Payment of credit insurance is also included in each monthly payment.
D. Credit insurance
Choosing a credit insurance helps to be more serene about the future. It is a way of reassuring oneself and one’s entourage in case of difficulty. As part of a loan, there are four main types of insurance:
– Unemployment guarantee: this insurance allows you to be covered when you lose your job. Only fixed rate loans are eligible for this insurance.
– Invalidity (partial or total): when the subscriber of the loan is on disability, this guarantee makes it possible to cover the monthly payments of the credit.
– Temporary and total incapacity for work (ITT): It can happen that an accident or illness prevents you from working. In order to avoid the delay in the payment of monthly payments of your credit, the insurance takes over.
– Death insurance: this guarantee allows your loved ones to be reassured in case of death. This will cover the monthly payments of the outstanding credit.
E. Adjustments during repayment
Some credit organizations may offer you a carry forward of monthly payments. This will allow you to shift the repayment of your first monthly payment. Another advantage sometimes offered is to temporarily pause the refund. Please be aware that this service is not charged too much, moreover the interests of the “break” period will remain due in the long run.
F. The APR
It is calculated according to your project and your situation. Do not hesitate to make several online simulations, indeed the APR may be different depending on the duration, the amount, and the type of your application for funding.
THE APR: This is the Annual Total Effective Rate. It is composed of 3 elements: the basic interest rate, the expenses of files and the insurance credit. This rate is communicated by the credit institution or the bank.
III. How to make the right choice of credit online
A. Perform budgeting
Each month, you will have to pay a monthly payment to repay your loan. This charge must be taken into consideration in the monthly budget. By predicting in advance the amount and duration of the credit, you can better prepare its repayment. So no nasty surprises, since you will have already planned this new charge.
B. The quality of customer service
Subscribing an online credit is simple, but the course can be complicated later. Each bank and credit organization must provide you with the opportunity to contact them about the credit you have taken out. Some are more successful than others in this area, and can avoid losing patience when you have a request. Quality customer service by telephone or e-mail is an essential asset to take into account in your comparison. At Creditstair, the first personal credit platform, customer service is at the heart of our concerns.
C. The total cost of credit online
We often think of comparing a credit against the APR. But this can change depending on the credit institution and the duration of the repayment. The easiest way to compare your credit online is to look at the total cost of different offers. In order to define the total cost of your credit, the easiest way is to calculate this cost according to the different parameters: the amount borrowed, the annual percentage rate of charge (APR) and the repayment period. To find out more, you can consult our guide on how to calculate a consumer credit.
D. The case of revolving credit
Some online credit institutions may offer you a revolving credit (also called revolving credit). This type of credit allows you to put at your disposal, often by means of a credit card, a permanent cash reserve. The main problem with this system is that the proposed rate is much higher than a conventional credit. This rate is very often revisable, that is, it changes over time. Sometimes on the rise, which leads to an additional reimbursement cost. The only interest of this type of credit is its flexibility, since the liquidity reserve is always available. But the price for this flexibility is high.Capture on 12/05/2015 of the “Bank” ranking on the TrustPilot customer notification platform. The total cost of the credit is equal to the sum of the monthly payments to be repaid. This includes: return of capital, interest, fees and credit insurance.
IV. To conclude
Applying for credit online is easy, and do not hesitate to compare different offers. Many parameters come into play, depending on the type of project and how you want to repay it. Keep in mind that some promotional offers are temporary and only apply to certain projects. You will have to compare the offers according to your personal project.
If you have one or more credits that you wish to buy back, we invite you to consult our file on the different ways to buy back your credits. If the purchase of credit concerns consumer loans, you can consult our guide on how to obtain a buyback of consumer credit. You will be able to find all the necessary information to make the right choice.
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