When you have a project in mind but not the money to realize it, it is common to want to opt for a credit. Now, many online credit houses offer interesting offers to finance your dreams. We take stock of the different types of existing credit and help you find the ideal online credit house for your project.
When one subscribes to a credit, the lending institution makes available to the borrower a sum of money, which the latter will have to repay. When we have a project in mind but not the finances to achieve it, two options are available to us. Either save enough time to have enough money and therefore, postpone the project, or borrow the amount necessary to realize the expense in the immediate future. Thus, the credit allows the borrower not to delay his purchase.
The different types of credit
If you do not want to postpone your project and you decide to borrow money from a financial institution, it will be useful to know the different types of credit that exist to select the one that will best to your project.
Among the various credits, there is the depreciable credit, which is the most common form of borrowing. It can be a type of consumer credit, a fixed rate loan or a variable rate loan. At each maturity, the borrower repays both a portion of the borrowed capital and interest.
Flexible credit offers the subscriber the possibility of changing his monthly payments up or down. It is even possible to postpone one or more monthly payments or to make a partial early repayment. As a general rule, real estate loans offer this option to the subscriber.
The adjustable rate credit, also known as floating rate credit, has an interest rate that will be index-linked and may go up or down. However, the rate variation can sometimes be capped compared to the initial rate. We will talk about capped rate. Changing the interest rate may impact the repayment term or the monthly payment, or both in some cases.
Another form of credit exists, although it is intended for professionals and not widely used by individuals. This is the constant capital repayment loan. The principle of this type of credit is to repay at each maturity the same amount of capital. Since interest is calculated on the outstanding capital, the total amount of the maturity (principal repaid plus interest) gradually decreases over time. This credit offers the advantage of having a lower overall cost compared to a fixed-term credit of the same amount and duration.
The fixed rate and progressive maturity credit is a credit not to be confused with the adjustable rate loan. With this type of credit, the maturity is increased by a certain percentage each year to allow depreciation. It has the advantage of allowing the borrower to obtain lower monthly payments at the beginning of repayments. On the other hand, you should know that at the same interest rate, it will be more expensive than a credit with a constant maturity.
There are other types of credits called consumer credits. Personal loans, assigned credit, revolving credit, lease with option to purchase or free credit are part of consumer credit. These concern various financial transactions, but never related to real estate. Consumer credits allow the purchase of consumer goods such as a vehicle, a trip, a new television etc. The credit amount must be between 200 euros and 75 000 euros and the repayment term will always be greater than three months.
Choose your credit house online
In recent years, there are many websites that offer borrowers to make online credit simulations. Very practical and fast, these simulators allow the borrower to know if he will be able to borrow money since the simulator takes into account the income of the user but also to choose the most suitable type of credit to his personal situation.
This feature offers the advantage to the user to be able to choose the online credit house that offers the best rates but also to have a first contact with the various credit houses online. Once the offer is established by the latter, the borrower can ask to obtain an appointment directly in the financial institution of his choice, or to finalize his application directly on the internet if he does not consider it necessary the physical contact . Feel free to use credit comparators, you are sure not to miss out on the best offer.