What does the credit rate correspond to, whether it is a need for consumer credit (personal loan, car credit, work, etc.) or a real estate project? What is the best credit rate that it is really possible to obtain to carry out your project? What can a credit comparator bring to its research? Explanations and method for obtaining the cheapest credit.
The credit rate, always in APR
Any credit offer is associated with a rate, whether it is a consumer credit (personal loan, car, work, revolving credit) or a mortgage.
The credit rate is always expressed in APR, for the overall effective annual rate. Its limit is defined by the Bankate each quarter, according to ranges of amounts. This is called maximum wear rate. Credit organizations, banks or other credit players in France have the obligation not to exceed this limit.
|Details||Strong point||Average fixed APR rate|
|Amounts : $ 1,000 to $ 75,000
Duration : 6 to 120 months
|Generally the – expensive||1.00% to 5.25%
|Amounts : $ 4,000 to $ 75,000
Duration : 6 to 84 months
|Interesting rates over 48 months||1.00% to 5.72%
|Amounts : $ 3,000 to $ 15,000
Duration : 12 to 60 months
|Subscription possible 100% online||2.20% to 5.75%
Consumer credit rate
The consumer credit rate is always expressed in APR. This rate must also:
- Integrate all the costs inherent in credit: not only the agios but also the administrative costs. This means that the APR credit rate is completely exhaustive.
- Be communicated in all encrypted advertising: in other words, credit companies have no choice, they must publish their credit rate.
Our credit comparator always ranks the lowest to the highest rate, since it only bases its ranking on the APR criterion. Connected in real time to the largest credit organizations, it offers an overview of the best rates of the day. This gross classification is mainly accompanied by an immediate response in principle, without commitment.
Too advantageous credit rate = mistrust
It regularly happens to see some consumer credit offers at incredibly low rates, sometimes even below the fixed 1.00% APR. Often associated with the shortest repayment terms, credit promotions do not allow the greatest number to obtain an agreement.
Indeed, lending organizations always have the obligation to check the creditworthiness before accepting or not a loan request. However, a credit of 10,000 USD over 12 or 24 months generates very large monthly payments. Getting the best credit rate is pointless if the credit is turned down.
Compare rates, a way to reassure yourself
A loan refused at the best rate causes delay in its project. The body pronouncing the refusal will find itself above all in a position of strength to offer another rate of credit, this time higher. In short, one should not embark on any low rate credit.
Using a credit comparison tool with immediate response allows you to control your monthly payments, avoiding wasting time and potentially missing out on the lowest rate actually accepted.
Fixed APR, most common credit rate
There are several types of consumer credit: repayable loans and revolving credit. Depreciable credit includes all non-renewable credits, namely:
- Personal loan
- Auto Credit
- Works credit
- Redemption of credits
By definition, the fixed APR credit rate has a fixed term, a fixed rate and a fixed monthly payment. Everything is defined in advance, so that reimbursement takes place in the best conditions.
Revisable APR credit rate, only for revolving credit
The revolving credit rate is an adjustable and not fixed APR. Unlike its cousin, the revisable rate associated with a contract is subject to change.
When a simulation of revolving credit is carried out from our comparator, we offer revolving credit for any request of 4000 USD or less.
The rate of a revolving credit can be brought to change in several cases:
- When reusing the money available in the reserve: the rate obtained when the contract is first opened is rarely the same as that offered for using the available sound.
- Arbitrarily by the lender, who must then notify the borrower and obtain his agreement. In the event of refusal, the credit is converted into depreciable credit under current conditions. It is therefore no longer possible in this case to obtain a small quick loan.
How to compare revolving credit offers?
Credit organizations offer revolving credit as a priority when a small need for money is requested. The credit rate being variable, in this case, the revisable APR rate is not our only classification criterion. We also take into account promotional offers and proposed reimbursement rates.
Once the form is completed, our comparator therefore first requests the organizations offering the best rates capable of accepting the request without complaining. A small project can only rarely wait, which is why it is important to get an immediate positive opinion without making a mistake.
Which credit rate is the lowest?
It is important to note that not all credit agencies offer attractive rates on all types of credit. There are even significant differences between the best and the worst, for each loan category. Also, an organization offering an excellent rate for 10,000 USD over 48 months may well offer another much larger one over 60 months.
Some trends emerge according to the organizations’ priorities, but the best way to ensure that you get the best rates is to use a comparator.
Personal loan rates
The personal loan rate is always a fixed APR. Offered by all credit organizations and players, this credit without proof of use of money undergoes significant rate variations. Let’s perform a 10,000 USD personal credit simulation on our comparator to illustrate it. A comparison to which the personal credit rates of several large banks have been added, in order to obtain a more global view of market rates.
Bank rates here are far too high. The observation is unfortunately systematic on most credit simulations, whatever the project. Online credit agencies are on average much cheaper.
APR rate of revolving credit
Revolving credit is often expensive on average: its rates reach up to 20%. This credit is only interesting if it is repaid over short periods.
Auto Credit Rates
Auto credit is in the vast majority of cases a depreciable loan at a fixed APR rate. The car loan project is different if it is to finance a new or used vehicle. Indeed, the car credit rate will be lower if it is for a new car. This is mainly due to the fact that in the event of a repayment problem, the lender will recover more money by seizing a car that was originally new.
The car loan rates offered by dealers are generally higher than those of specialist organizations, since there is one more intermediary to pay. Only promotional periods allow access to advantageous concession credit. It is still necessary to receive a positive opinion.
And what about the work loan?
Regarding the work loan rates, as for the car loan, you must provide proof (quote, invoice). Some organizations stand out from the competition thanks to very attractive offers on work loans. Only the use of a comparator allows sorting.
Mortgage loan rates: what you need to know
Real estate credit is, like consumer credit, subject to the APR rate.
The very big difference with consumer credit is that the rate of the mortgage depends a lot on the borrower’s file. Indeed, the best files will have a very low rate, which will not be the case for files at the limit of acceptance.
And when it comes to real estate financing, it’s not the only factor that can influence pricing. There is also the region and the type of property that can raise or lower the conditions of the mortgage.
Our real estate comparison makes it possible to obtain an immediate evaluation of your project, and to obtain assistance in the search for the best borrowing rate.
Other legal concept
Credit rates are subject to a designated ceiling (see usury rate). The Bankate communicates each quarter on the new conditions. There are different limits depending on the type of credit and the amount borrowed. The rate offered by an organization must never exceed the rate of usury at the time of signing the contract.
A new concept has just appeared in recent years, it is the TAEA, the annual effective rate of insurance. This concept is very important because it helps to understand the cost of insurance for a credit. It is a rate which is added to that of credit.