There are several kinds of consumer credit. Affected, unaffected, depreciable or renewable, complex terms that must however be differentiated. What are the rates for each? What is the point of grouping them?
The various consumer credits
By definition, a consumer credit is a loan granted to you to finance one of your purchases. There are different types of loans:
If the project is not defined and you want an amount of money available for several purchases, for example, the credit is said to be unallocated. This is the case with revolving credit (previously called revolving or permanent).
Granted by financial organizations, it is not intended for the purchase of goods or services. It provides a sum of money on a specific account with which you finance the purchases of your choice, without the need for proof.
Its repayment is made progressively, within the limit of the financial ceiling defined when obtaining the credit.
His advantages :
- Simple installation
- Once the amount is refunded, the maximum amount is available again.
It is intended for a specific purpose such as the purchase of a car, furniture, or the performance of work … The loan is therefore said to be affected .
It is often depreciable and granted by banks.
- Less expensive than revolving credit
- Monthly payments and cost of credit are known in advance
Please note: the withdrawal period after signing a prior offer is 14 days.
The case of personal loan
A personal loan is a type of consumer loan (with the same characteristics) but which has the particularity in certain cases of being unaffected. You can therefore use it for the purchase of goods (car, furniture, household appliances, etc.), services (financing a wedding, your children’s studies, work, etc.) or to build up cash if necessary.
- Obtaining without proof
- Lightened grant conditions
All these credits have higher or lower rates and repayment constraints.
What are the rates applied for each of these loans?
The rates that can be offered to you are:
- Revolving credit: between 6% and 20% or more
- Consumer credit / personal loan: between 4% and 8%
Even if they remain high, we are currently seeing a fall in rates, especially on consumer loans. In this context, requests increased by 8% in March after three years of decline (half of the credits granted for the acquisition of a new car).
The main characteristic of consumer credit is their accessibility. We can subscribe several easily and according to our needs. However, we must be careful not to accumulate more than our monthly repayment capacity. The risk would be to move to a debt ratio higher than the recommended 33%.
Have you accumulated many consumer credits? Including revolving credits with high rates? It is therefore in your best interest to group them!
The advantage of combining your credits
Pooling credits has several advantages:
- Restructuring your loans into one credit (even if the rates or duration of old loans were different)
- A new monthly payment adapted to your current repayment capacity
- The possibility of renegotiating the rates of some of your loans (subject to conditions)
- The request for financing a new project or additional cash
- The possibility of keeping the direct debit with your current bank
Our advice to take advantage of it: make a free simulation on our website. It will allow you to take stock of your situation, but also, to have expertise on the solutions that await you.