Low-rate loan: how to get the best credit?
Getting a low rate loan is an important financial issue. Whatever the amount requested and the desired duration, the rates can easily vary from simple to three times from one credit organization to another. Interest is then much higher, and the total cost of credit is affected. Compare the best offers is the first reflex to adopt to hope to take advantage of the cheapest credit. Let us take a close look at the steps to follow in the quest for a low rate loan.
How to find the best low rate loan?
Finding the lowest possible credit rate can save hundreds of dollars. Difficult however to access the best offer without the help of a comparator.
This implies not only knowing the best organizations and banks, but above all to multiply the simulations. Connected to the most competitive credit organizations on the market, our comparator offers the best loan at low rates instantly. A real time saver, and a solid basis for obtaining the lowest consumer credit rate of the day.
Organizations, banks: where are the low credit rates hiding?
There are two large families in the small world of credit: specialized organizations and conventional banks. Banks are however lagging behind specialists, who are better at processing files. A delay which is characterized by generally less advantageous rates and a slower processing time. Let’s remove the doubt on the question of the lowest rate by carrying out several credit simulations.
The banks selected are, unsurprisingly, more expensive than the best credit offer from specialists. Our experience shows that banks rarely offer a competitive low rate loan. It is also important to note that they generally require the borrower to open an account to benefit from the borrowing conditions. Credit organizations therefore have a clear advantage at all levels.
Good to know: credit organizations frequently offer promotional offers. Limited in time, they are all integrated into our comparator. Performing several simulations by playing on the amounts and durations often makes it possible to obtain a real good loan at low rates.
Low rate loan: financing solutions
Now that you know how to get a low rate loan, it’s time to take a look at the different credit options. It is by focusing on the amount rather than the targeted project that we will define the most suitable low rate loan formula.
For a credit of more than 4000 $
The personal loan is perfectly suited to a loan of more than $ 4,000. Depreciable over periods of between 1 and 10 years, it allows you to stagger your monthly payments, thus avoiding a credit that is difficult to repay. The best personal loan rates are generally still offered by organizations and banks. It is actually consumer credit in its most classic form. Let’s put into perspective the differences in rates found on our comparator depending on the amount and the duration requested.
|For a personal loan of 5000 $ over 24 months||Fixed APR rate||Monthly fees||Total cost of credit|
|Best Credit Organization||3.89%||216.73 $||201.52 $|
|Organization n ° 3||12.58%||235.15 $||643.60 $|
|For a personal loan of 10,000 $ over 48 months|
|Best Credit Organization||3.60%||223.75 $||740, 00 $|
|Organization n ° 3||5.60%||232.39 $||1154.72 $|
The third best organization is here three times more expensive than the best credit (in terms of total cost of credit), for the same personal loan of 5000 $! An observation that makes you think, especially since it is possible to come across even more expensive offers. The stakes are even higher when the sums reach five figures.
Sometimes offered to accompany a project loan (car loan, work loan, travel loan, etc.), the personal loan meets a need for cash. It is accompanied by a fixed APR rate, the benchmark for calculating interest on an annual basis.
Revolving credit, for a low rate loan of less than $ 4,000
It is the revolving credit which adapts well to a need for financing lower than 3000 $. Generally always offered by organizations when the request concerns a small amount (less than $ 4,000), this loan is distinguished by its flexibility of use. One can indeed re-use several times a revolving credit: the money made available during the first opening is renewed in the wallet over the repayments.
Revolving credit rates are generally higher than personal loan rates, mainly due to this ease of re-use. It is also easier to obtain, and to amortize over shorter periods (12 to 36 months for $ 3,000 or less). A refused personal loan file can very well go into revolving credit, with the same organization. It is therefore not necessarily a low rate loan, but it has significant advantages.
Again, the rates offered for the same revolving credit can vary widely. To perform a revolving credit simulation from our comparator, simply select any project whose amount is 4000 USD or less.
Low-rate loan: beware of too flashy offers!
It is common for banks, organizations or stores to display promotional rates for limited periods of time. Many promotions are based on durations of 12 or 24 months, sometimes involving very high monthly payments. Not only is this credit not very accessible, but it can especially be difficult to repay.
Taking out easy-to-repay credit over longer periods of time will be much more comfortable mentally. If specialists are required to check the creditworthiness of the borrower, he too must facilitate his chances of repaying without problem (know everything before borrowing). The low rate loan is only interesting if it is easily repaid. This is all the more interesting since all or part of a consumer loan can be settled in advance. However, an early repayment gives rise to a reduction in the total cost, insofar as the remaining interest will not be invoiced.
A low rate loan for a car or work?
Some organizations offer low-rate loan formulas, adapted to the purchase of a service or a vehicle. The Franfinance car loan rate is, for example, more attractive than a conventional personal loan, for the same amount. The only difference here is that the borrower will have to provide proof of purchase of the vehicle. A guarantee for the lender, who then makes an effort on the rate of credit. Loans called “earmarked” for a purchase are not always practiced online. Also, the documents justifying the purchase may vary from one organization to another.
Our comparator is designed to always make it possible to obtain a low-rate loan dedicated to works; or the acquisition of a car. If the project corresponds with the purchase of a car or the fitting out of your house (decorative credit, extension), it will always be more interesting to compare the rates with those of the personal loan. You must then select “auto credit” or “work loan”.
Low-rate mortgage: good practices
The stakes linked to mortgage loan rates are even greater than in the case of consumer credit. On a sum of more than $ 100,000, obtaining a loan at a low rate can save several thousand USD. Conventional and online banks are waging a serious mortgage rate war. A major advantage for the consumer, provided you do it the right way. Here are some tips for applying for a home loan.
- Fill out a real estate project form on our comparator, in order to get the best deals.
- Announce the rate obtained to his bank, which will have no choice but to offer better.
- Find out about the other low-rate loan offers offered by the various real estate players.
- Take your time and find out about the cost of borrower insurance, almost always requested by banks.
Loan insurance is not compulsory in the case of consumer credit, but is almost always compulsory for mortgage loans. On the other hand, you can take out real estate insurance anywhere, and change it during the course of credit (see Bourquin amendment).
Low rate loan, what to remember to get the best deal
Getting a low rate loan is an important financial issue, regardless of the amount requested. We have seen that the cost of a loan can easily fly from one organization to another. Not to mention the banks, which are generally more expensive with consumer credit solutions. Our comparator integrating the best credit specialists provides the best rate in seconds. This is true whatever the intended project (need for money, car / work credit, etc.).
Once this first step has been validated, all that remains is to complete a form. Providing information is the assurance of obtaining an immediate response in principle. If this offer is not accepted by the organization offering the best low-rate loan, it will then be possible to repeat the operation with the other two completing the podium. The acceptance conditions are different for each organization: sending their file to the top three increases their chances of obtaining a favorable opinion.