There are different types of consumer credit, and not all of them have similar conditions. We will go around the main features of all types of loans. We will also see why any consumer credit deserves a comparison. So which consumer credit should you choose for your project? List of credits and explanations.
Types of consumer loans and their particularities
Our credit comparator integrates the main types of credit, including real estate. The choice of consumer loan systematically generates a different calculation of the rate. The credits are not alike. Some are more or less easy to obtain because they require fewer supporting documents. Others, such as auto credit, require that you provide proof of project to the lending institution. Everything you need to know to fully understand the different types of credits and their specifics.
List of types of consumer loans
The personal loan is a credit without proof of use of money. This unsubstantiated loan is a classic of its kind. The lender is likely to ask for details but has no regard for the use of the funds. The ideal credit for traveling or making a car purchase on a classified ads site.
New car loan (-2 years) and used car loan (+ 2 years)
The new or used car loan is a loan involving the delivery of a vehicle purchase order. This document is issued by dealers or professionals in the sector at the time of purchase. The rates for this “justified” credit are more attractive on average than those for the personal loan. Note also that new auto loan rates are also slightly more attractive than those used. The supporting documents to be provided are substantially identical to those of the personal loan.
The work loan is generally always subject to the delivery of a quote or purchase order, on the same principle as the car loan. The rates are there even more advantageous than those of the personal loan.
When it comes to small jobs or they are intended to be carried out without calling on a professional, it is to a credit without proof (revolving credit or personal loan) that must be turned.
Revolving credit, for less than 4000 USD
This is a small loan: only a request for less than 4000 USD (all projects combined) made from our comparator leads to a request for revolving credit. This small reusable loan gives access – beyond the initial credit amount – to a reserve of money. The amount of the reserve is replenished with each reimbursement, and can be reused. This credit can be associated with a credit card, it is even issued by multiple large brands.
Finally, the rate of this credit is an annual effective annual rate (APR) revisable and not fixed like that of its cousins. This distinction allows organizations to vary the rate during credit. This is mainly the case when requesting a re-use of the credit with an express transfer from the money reserve. In this case, the rate generally comes close to the wear threshold *. Revolving credit is practical and allows its holders to obtain money within 24 to 48 hours (immediate transfer) once the contract is open.
Good to know: unlike all other types of consumer credit, revolving credit does not generally require providing a tax notice. The latest pay slips are enough to justify the resources of the borrower. It is also a consumer credit without proof, just like the personal loan.
Redemption of credits
The redemption of credits is indeed a consumer credit. Its principle is to combine several monthly payments into one, easier to repay. A new rate is calculated as well as new interest. The amounts generated are on average much higher than those of other types of loans. This is the reason why it is even more important to compare buyout offers than any other type of loan before committing.
Our redemption questionnaire allows us to find the best rate under the best repayment conditions.
Rental with option to purchase (LOA)
The LOA is a consumer credit, although the rate is never communicated. This is the reason why our comparator does not include this type of loan. The French are in favor of this type of loan to the detriment of conventional car credit. It is important to remember that unlike a car / motorcycle loan, the driver does not own the vehicle. It can only become so at the end of the rental contract, subject to paying the amount provided for in the terms of the contract.
All types of credits deserve a comparison
There are multiple players in online consumer credit, including the famous online organizations. Whatever the type of credit and its lender, it is always worthwhile to make a comparison of rates.
Our comparator does two things:
- Compare the rates of all types of loans based on the APR rate
- Obtain an immediate response in principle (without obligation)
Significant differences in rates between several establishments for the same type of credit largely justify at least an indicative comparison. Online credit rates are also generally more attractive than those of banks or dealers, in the case of an auto loan. The search for cheap consumer credit often starts with an online comparison.