A very useful tool for household life, consumer credit is one of the pillars of the modern economy. In Belgium, more than 6 million people use this type of credit each year to finance a purchase. Small focus on consumer credit to understand the drivers and know how to control it.
KNOW HOW TO COMPARE THE CONSUMER CREDIT RATE
The rate of a consumer credit is crucial. It ensures the remuneration of the lending institution and determines the cost of credit for the borrower. To be relevant, your comparison must be made on a single basis and including all costs. The Annual Total Effective Rate (APR) was created for this purpose. The latter includes all that is owed by the borrower under the loan contracted. As the mention of the APR (annual effective annual rate) is compulsory, you will have no trouble finding it.
FINANCE A MOVABLE PROPERTY OR A SERVICE
A credit is said to be “consumer” when it is contracted to finance a movable property or a service too expensive to be paid in cash or even to meet a need for liquidity. In fact, most households take out consumer credit for the purchase of a vehicle, for the renewal of their household appliances, or to finance a special occasion such as a wedding. It will be understood, a consumer credit is a loan of money granted by a bank or a specialized organization to finance any purchase other than that of a property.
A FAMILY OF CREDITS
Today, there are different types of consumer credit to respond to very different financing issues. Banks and credit organizations have indeed designed products adapted to each need: car credit, work credit, personal credit, loan repurchase. Most often these are depreciable loans (installment payments) but there are also revolving loans.
HOW TO TAKE OUT A CONSUMER CREDIT?
First of all, never forget that borrowing money costs money and that credit must be paid back. You must therefore borrow up to your repayment capacity. That said, it is very easy to take out consumer credit since the spread of the Internet. Take advantage of the facilities offered by the latter to search for consumer credit online. Attention, the offer in this area is very important and you could quickly be a little lost faced with this abundance. The best is to use a powerful credit simulator like that of Across Lender which will allow you in a few clicks to compare the different financing solutions and their rates.
When it comes to credit, wisdom is synonymous with comparison. The Business and Society credit simulator will allow you to go step by step and go to the solution that is most beneficial for you. Serenity in a few clicks!