Subscribe to a bank loan: our advice
Difficult to find you in the vast universe of the bank loan? The use of credit is however often essential to realize your projects. We help you: here are 7 tips to make the right choice.
1. Delimit your project
In order to choose a bank loan, you must first have a clear definition of the project you want to finance. The type of loan to choose will obviously not be the same depending on the nature of the project, which may take the form of a personal loan, a credit car / motorcycle, a home loan of a work loan etc. It should also be noted that only certain loan categories allow individuals to benefit from certain types of assistance. This is particularly the case for real estate loans and work loans which are to be solicited respectively for different projects.
2. Set the right amount to borrow
In defining his project (purchase of a car, a house, etc.), the consumer also has a good readability of the amount it will cost. From the price of the project, the personal contribution available to the individual and the prevailing interest rates, an individual can come up with the right amount to borrow. For this, he can make an estimate via an online simulator, or he can also seek advice from a professional (banker, broker, lawyer).
3. Compare different loan offers
Whether it concerns a personal loan or another type of loan, a request for information from a financial institution generally makes it possible for the latter to obtain a first loan offer. This will necessarily include the Global Effective Rate (APR) which allows the consumer to have a good readability of the overall cost of the proposed credit. By comparing the TEGs of the various loan offers received, the individual can already make an initial selection of loans and thus tighten his choice.
4. Prepare your loan file
Once the borrower has chosen several loan offers that seem interesting to him in relation to his project, he must contact the various relevant financial institutions. An individual can make several loan applications, all of which must be accompanied by a file. To be accepted, this loan file must include proof of income proving the solvency of the individual (pay slips, tax notices, statements of account, etc.), but also information on his personal situation (marital status, number of dependent children, etc.) and any other outstanding credits.
5. Avoid unpleasant surprises
The file accepted by a financial institution, the latter sends the individual a personalized offer of credit agreement. This offer includes all the information of the future contract, including the amount and duration of the credit, the amount of the deadlines, the TEG and the presence of any additional costs (supplementary insurance, file, etc.). It is therefore for the individual to read meticulously the offer of contract not to be surprised by any terms that do not suit him. If this were the case, he would still have 15 days to refuse the offer, and then another 14 day withdrawal period once the contract has been signed.
6. Pay attention to its debt ratio
Last but not least, the future borrower must always ensure that he / she will be solvent throughout the term of the loan, including in the event of a hard blow such as the loss of his / her job. If he has chosen a personal loan, he will have to face a fixed rate and therefore stable monthly payments that are easy to predict (only the very first maturity may vary if the first repayment period is not exactly equal at one month). Each monthly payment must be paid in all cases by the borrower who has committed to reimbursement by signing the loan agreement. To be able to face all these monthly payments over the entire duration of the loan, it is advisable to have a personal debt ratio of no more than 33%.
7. Do not be wrong in choosing the lender
A loan yes, but with whom? The credit market is full of organizations promising the best conditions, but not all of them have the same solidity and rigor. But this is your money, so it is essential to move towards an identified actor and attested ethics. It is the role of the Prudential Supervisory and Resolution Authority (ACPR), a dependent entity of the Banque de France, which issues an authorization to credit institutions. Younited Credit has the authorization n ° 16488, which certifies that it fulfills the criteria of the ACPR.