The consumer credit is now a remedy to which individuals may submit one wishing to purchase immediately without financial means. This is a loan available from financial institutions such as banks and credit companies. Thus, it can take advantage of purchase without waiting to have saved enough to get it. In return, he pays the loan in monthly installments. Aside from real estate, any type of consumer good can benefit from a consumer credit.There may be various forms of consumer credit. These include: the traditional personal loan, personal loan or revolving revolving credit. For everything you need to know about consumer credit, read the article.


The consumer credit: some preconditions

While buying on credit is the most risky with this global financial crisis, be aware that in terms of consumer credit, there are general principles which provide the full protection of the consumer. So, be aware that there is the obligation of the credit company to make an offer prior and a withdrawal period of 7 days to applicants. A credit card can also be attached to the loan. There are no special conditions for access to consumer credit. However, having a source of income seems to be a minimum to avoid any risk of debt distress. Then you have to be of age and resident. Obviously, for this credit, it will not be included in the blacklist of “Bank of France.”

The different types of consumer credit

In general, there are three types of consumer credit: the traditional personal loan, credit affected, and revolving credit. For the latter, it is a sum of money made available to the borrower to renew until the refund is made. The borrower can then use his credit, in whole or not according to his needs. As for the credit assigned, it relates to loans that the individual performs as part of a purchase pre-made. Subscription to this type of consumer credit is generally the place of sale of the property in question during the purchase.

The appropriation has the advantage of being automatically cancel in case of non fulfillment of the contract of sale. Regarding the traditional personal loan, it can be defined as opposed to credit affected. Indeed, if it is for a specific use, the traditional personal loan is granted without any limitation that the borrower will make. Personal credit has the advantage of being more accessible. These different types of consumer credit have their specificities with their advantages and disadvantages. Also, it is important to properly assess the needs of the borrower before deciding. Thus, it is strongly advised to make a personalized simulation of credit with the credit agency before the final decision.

Interest rates and monthly payments

At the time of the granting of any consumer credit, a contract is signed and must include all the terms of repayment with interest rates and maturities. Each financial institution sets its interest rates, however, it should not exceed a maximum rate imposed by the State. This percentage rate or APR must be included in all offers of credit. It consists mainly of the base rate and other costs (insurance, fees, etc.) Generally, the TEG is mentioned year. In some cases it may be monthly.

As for payments, monthly payments in terms of amount and maturity depend entirely on the type of credit contracted. For the personal loan, a schedule is pre-set when subscribing to credit. The credit recipient must comply with the repayment schedule under threat of penalties in addition to the administrative procedures that could lead to the judges and he would be prohibited banking. To the credit assigned, in particular, the borrower can begin to repay the loan as soon as the acquisition has been delivered or when he has the financial means.