Works credit, a real consumer credit project

It is possible to finance all types of development, small or large, thanks to a works credit. The best work credit to completely renovate your house is not the same as that which will be used for a simple change of decoration. Let us identify all the means of obtaining the best rate of the works loan, according to his project.

What is a works credit?

What is a works credit?

The construction loan is part of the consumer credit range. Proposed by the main credit organizations, it makes it possible to finance projects between $ 500 to $ 75,000. The duration of repayment of a works credit can reach up to 120 months (10 years), making it possible to amortize the largest loans over time. In addition, the works credit is most of the time offered at a fixed APR rate.

The different types of works credits

The different types of works credits

There are three main formulas for obtaining a work credit.

The work credit with proof or “assigned”

The borrowed money is in this case exclusively reserved for carrying out the work. This loan benefits from particularly low rates. However, keep in mind that it can only be obtained if you  provide proof of credit to the lender. It is generally an invoice from the craftsman or an order form. Advantage of this formula? The credit contract is canceled if the project is not carried out. You must select “work loan” on our credit comparator to access the best rates for your work project.

To know about the credit allocated to the works:

  • Credit with proof of completion of work
  • The loan is offered by online credit organizations, but also the artisans themselves
  • Amount on our comparator: from $ 500 to $ 70,000
  • Duration: 12 to 84 months (120 maximum)
  • Fixed APR rate

Personal loan

Some organizations offer a conventional personal loan to finance work. The personal loan at the best rate is generally less attractive than that of the work credit with proof. However, it allows you to use the amount without having to justify yourself.

Personal loan for work: what you need to know  :

  • Credit without proof of completion of work
  • Proposed by organizations, banks and insurers
  • Amount on our comparator: from 500 $ to 30,000 $
  • Duration: 12 to 60 months

Revolving or store credit

Need a small amount (less than $ 3000) to finance DIY materials or redecorate? Revolving or in-store credit is a small works credit solution. Brands like Ikea, Conforama or Leroy Merlin are likely to offer these solutions to finance a construction loan. They use their loyalty and payment cards, often managed by credit organizations, to offer this quick little credit. This formula is often offered at significant revisable APR rates, unless a special promotion provides otherwise.

The revolving credit for works is:

  • Proposed by credit organizations and specialist brands
  • Intended for small amounts (3000 $ maximum in general)
  • Mostly reimbursed in 3 to 36 months

How to Find the Best Works Credit

How to Find the Best Works Credit

You have to identify your need for money by making quotes before looking for the best work credit. Knowing how to accurately estimate the sum of your needs is an important first step. This will allow you to choose an appropriate amount when performing the credit simulation, and potentially find an even more advantageous rate.

Cost of the work: what budget should you plan?

The addition can quickly climb when you want to make an extension, or even get a credit to redo your roof. We studied the market in order to estimate the cost of several routine works.

Type of work
Average cost per m²
Floor (parquet, tiles)
90 $ / m²
Renovation of classic roof tiles
70 $ / m²
Slate roof renovation
130 $ / m²
New roof + frame
$ 250.00 / m²
Extension
1500 $ / m²

An extension credit  costs so much per m² that it often represents at least a requirement of $ 10,000. We will see that, on such large amounts, obtaining the best rate represents a huge financial challenge.

Best loan rate

We simulated the APR rates of two works loans, one of $ 8,000 over 36 months and the other of $ 15,000 over 60 monthly payments.

Works credit $ 8,000 over 36 months
Fixed APR rate
Monthly fees
Total cost of credit
Best Credit Organization
2.10%
229.42 $
259.12 $
Third best offer
5.77%
242.01 $
712.36 $
Works credit $ 15,000 over 60 months      
Best Credit Organization
2.80%
267.96 $
1077.60 $
Third best offer
5.77%
287.37 $
2242.20 $

The total cost of the best $ 8,000 loan to carry out work is three times less than that of the organization ranked third on our comparator. However, these are two major players in consumer credit. The same is true for the $ 15,000 credit simulation, with a difference of $ 1,164.60.

The works credit integrated into the mortgage

The works credit integrated into the mortgage

It is possible to integrate the cost of certain works into a real estate project. This practice is common, it avoids getting lost in it   by taking out both a work loan and a mortgage. Getting a work loan integrated into your real estate purchase project also allows you to amortize the work over the entire duration of the project.

In this case, the bank studies the loan request in a global manner, including the possible cost of the works. As in the case of a consumer works loan, it is therefore important to make several quotes.

Works credit: possible aid

Works credit: possible aid

There are a good number of aids for carrying out works, most of which are linked to improving the energy transition. Let’s list the main possible aids to carry out work.

  • The energy voucher
    Revalued in 2019, the energy voucher provides up to $ 227 per year. This check is sent directly to the beneficiary households, with no action necessary. Its amount depends on the household’s reference tax income. Intended for the most modest incomes ($ 7,700 / year for a single person, $ 11,550 for a couple + $ 2,310 per child), it allows you to pay bills or finance all or part of work related to the energy transition ( credit boiler, etc.).
  • The help of the Anah (national housing agency)
    The Anah is able to deliver two aids: “live better serenity” and “live better agility”. This aid can be very precious, especially for the lowest income. The Anah website gives all the details concerning the conditions of eligibility and use.
  • The eco-PTZ
    Extended at least until 2021, the eco-PTZ provides a zero-rate loan intended for carrying out certain work related to the energy transition. This aid was simplified in 2019: it is now possible to obtain it for a very specific need (change of boiler, new roof, etc.). but also :
  • The energy transition tax credit
  • The energy saving bonus
  • Help from the pension fund
  • The different loans from CAF