Auto loan: which loan to choose?

Behind auto credit is hiding several types of consumer loans that may be more or less suitable for the project, here is an overview of the loans dedicated to the purchase of a vehicle.

The classic car loan

Auto credit is by definition a consumer loan allocated to a project that is the purchase of the car. Therefore, an assigned loan means that in the event of non-completion of the purchase of the car, the loan is not put in place. This security is ideal for the purchase of a new car or a premium opportunity, that is vehicles with large amounts. The disadvantage is necessarily related to the length of the steps because it must be done a little in advance since proof will be required to obtain the car loan. That said, the rates can be more advantageous .

The personal loan to buy a car

The personal loan is a consumer loan granted without any need to justify the use, that is to say that no document is requested in this sense and that there is no allocation between the conclusion of the credit and an act of sale. It is the loan in opposition to the classic car loan. This financing has the advantage of being read faster to materialize but is oriented rather for cheap cars, on occasion. Note that it is possible to borrow a little more than the amount of the vehicle to cover registration costs for example. The rates can sometimes be higher given the speed of execution.

The revolving loan, charging system

The revolving credit is a reserve of money that can be used several times and that smoothes the repayment on several times, or to postpone the deductions until several months later, which avoids ending up in red when buying. This loan is rarely used for the purchase of a car because its cost is relatively high and this loan requires a card payment for amounts generally lower than € 10,000, there are few vehicles in this price range at the dealers Moreover, who accept credit card payments.

Automotive leasing

Rather than buying, some prefer to rent. But make no mistake, car leasing is well linked to a car loan. That is, it is the financing agency that buys the vehicle and then rents it to the borrower for rent. The concessionaire sets up the contract and the conditions of use then the lessor is in charge of checking the solvency of the borrower to grant him or her its lease with option to purchase (LOA) or its long-term lease (LLD). The LOA allows you to buy the vehicle at the end of the contract, at its residual value, that is to say at the value defined with the dealer at the signing of the lease. As soon as the contract ends, the loan related to the lease is also closed. Note that it is possible to make a transfer of leasing, which avoids refunding the penalties in case of return of the car.

 

Real estate loan: a project in 5 steps

 

 

5 steps are enough to prepare and obtain a mortgage, from the search for real estate to obtaining the offer of credit agreement, here are tips and tricks to know imperatively to succeed in his project.

 

1 / Know your borrowing capacity

The first and most obvious step is to know how much you can borrow for a real estate project with its current financial situation, with its net income, whether you have loans in the process of repayment or not. For that, it is enough to calculate the amount of its maximum monthly payment, it corresponds to 33% of the income (threshold of the indebtedness) but in the case where monthly payments are already in repayment, it will be necessary to envisage to withdraw them to obtain the exact amount that can be spent on the repayment of a home loan.

2 / Target the real estate

Knowing its ability to borrow, we can target the property to buy, namely a house or apartment and start negotiations because once the agreement of the bank is effective, it is possible to block the purchase of the house and so to be a priority, as much to have the contacts to be able to save time in the steps. It is possible to find real estate by going to the notaries or through real estate agencies, see the classifieds sites.

3 / Clean up your bank accounts

Having bank accounts and without any presence of irregularities (unpaid, late payments …) is a safe bet for banks, it is the guarantee of having a healthy borrower and especially who knows how to manage his bank accounts. It also makes it possible to negotiate loan terms, especially when there is a personal contribution to add to the financing. Wait a few months that everything is clean and then contact the bank, it’s a trick that works.

 

4 / Compare offers with a credit comparator

Mortgage comparators have a simple operation, that of offering a borrower a canvass ultra fast by filling a single form. The form is simply adapted to take into account the needs of each bank and each financial institution, which then allows the borrower to receive several loan offers and choose the best one. This step is crucial because it allows to survey the establishments and to obtain in a few clicks an estimate of the rates practiced as well as the total cost of credit.

5 / Take the time to think

The time for reflection is important and for a credit contract offer, it is 10 calendar days . As of the 11th day, the borrower can return the signed loan offer to the lender. This period is very important because in the context of a mortgage, it is often a large debt, spread over a long period, on average between 20 and 25 years. We must therefore be aware of the commitment made, on the one hand on the good that will be bought (be sure of its purchase and the good itself) and on the other hand on the credit subscribed, with the rate and the total cost of financing.

 

The mortgage loan, a way to finance its projects

Mortgage is a way that can be used to expand your wealth or to fund other projects. In fact, the mortgage loan is different from the mortgage loan. Mortgages concern the owners of real estate assets.

How the mortgage works

The mortgage is a bank loan with as collateral a real estate. This property used as collateral may be the principal residence of the borrower, mixed property or one of his second homes. The property as a guarantee may also be the property of a third party, in the case of a mortgage surety. The funds thus obtained may be used according to the convenience of the borrower. The mortgage loan can be used in case of urgent need of cash. The amount of the mortgage loan is proportional to the value of the property that will serve as collateral.

Several banks and professionals in this type of loan offer their services to make a mortgage simulation directly on their site or during an interview. A simulation will allow the borrower to evaluate the total amount of the loan he can benefit from, but also to know the formalities required for his application. The mortgage loan requires the establishment of a notarial deed. Indeed, the transfer of the sum requested is made by the notary, directly to the customer, the day of the signature.

In Fine Loan and Depreciable Loan

The repayment of a mortgage loan can be done in two ways. Indeed, the borrower will have the choice between two forms of reimbursement. A mortgage loan may be depreciable or In Fine. These two formulas each have their specific advantage, but everything will depend on the needs and preferences of the principal concerned, namely: the borrower. For a depreciable mortgage loan formula, the monthly payments paid by the borrower to his bank are made up of the sum of one part of the capital and the interest calculated from the amount of capital remaining to be paid. As a result, monthly payments due on amortizable mortgages decrease as the principal repaid increases with each maturity.

In fact, the less capital remaining to be repaid, the lower the interest payable on each monthly payment. The In Fine mortgage loan has constant monthly payments. Indeed, the monthly payments of this second formula are composed only of the interest which has been calculated for the whole duration of repayment of the loan. The capital will not be depreciated, but will be repaid at one time on the loan maturity date. These two types of formulas used for the repayment of a mortgage loan can be taken into account during a simulation. The choice will depend on the borrower, but it is always prudent to seek the services of a professional to have his valuable advice during this operation.

It is also necessary to compare the various offers available on the market to have the offer that best meet your needs and your situation. The mortgage loan should be used with caution, but it is one of the best ways to fund different projects. Whether personal or professional projects.

 

 

 

Acquire a loan: what you need to know

 

 

Satisfying a need, making a project a reality, or even making a dream requires money. It often happens that it runs out and it is precisely at that time that the loans find their full usefulness. This article will guide insiders into the world of credit applications.

 

Conditions of access to credit

The refusal of a debt occurs for various reasons. In any case, it is almost impossible to credit a person stuck by the bank. A customer who has too many financial commitments will also find it harder to win. The source of income of the applicant is also decisive, it must be reliable. Of course, an individual under the age of 18 can not be included in the list of debtors.

The credit comparator, a tool to your advantage

Once you have made sure you meet the conditions listed above, use an online credit comparison tool. This one is tool available on several websites that aim to establish a ranking of the banks being specialized organizations according to your profile. An online loan comparator therefore guarantees to find the best possible offers. In this regard, it is more prudent to check whether the rate corresponds to the one considered by the Consumer Credit Act as the reference. By the way, a credit simulator lets you know instantly, if the request gets the best rate. In the opposite case, it is enough of a simple click to solicit the second creditor appearing in the classification. When the application is accepted, it is necessary to wait just ten days or so before the money arrives in your hands.

Comply with standards

It will be necessary that the file of the interested party is composed of all the justifying documents claimed. As a rule, they include a piece of identification of the prospective customer, proof that he has a source of income, his exact address, and bank proof. Warning ! Attempt to deceive the body by falsifying information about oneself with unpleasant consequences, such as no longer enjoying the legal protections of overindebtedness laws. In addition, the organization systematically carries out a rigorous verification of each piece of information that the requester discloses to him. And when the creditor becomes aware of the attempt to get around the system, the chances of getting a loan will drop considerably. In the best case, it will be necessary to redo the whole of the process of application for loan, and thus, to waste precious time.

In case of refusal of credit

If the reason for the refusal of your credit is due to a considerable debt, the solution is based on the repurchase of credit. By doing so, the debt-crippled person decreases the amount of the monthly payments by putting all the credits together into one. And at the same time, the person will have a longer repayment period. Hence the lower monthly payments. If the refusal has any other reason (bank prohibition, income, etc.), then the only option to get a fast loan is to turn to an individual. The loan between individual offers more flexibility and requires significantly less conditions than a bank loan. Contrary to popular belief, this type of credit can be done formally.

 

 

Understand the professional loan in a few points

Unlike consumer loans and home loans, the business loan is generally for entrepreneurs who want to grow their business. This form of loan meets the needs of traders, associations and also liberal companies. So, if you are wondering how you can subscribe to this type of loan, here are some things you should definitely know, especially since it is an option to promote your business.

 

In which case can one subscribe to a professional loan?

Most companies that use a professional loan is certainly able to finance the development of their entrepreneurial activity. This is used to buy equipment to operate or launch an activity, but also to cover the real estate investments of the company. Thus, to grow while gaining other market shares, companies turn to business loans. In some cases, these loans are also used to meet cash requirements or working capital to consolidate the company’s equity. Be that as it may, a professional loan is used to ensure the development of an entrepreneurial activity.

What are the different types of business loans?

There are different types of pro loan, but in general they are characterized in two major parts, namely the professional loan according to the duration and according to the needs. Because of this, you can have the short-term loan or the long-term loan, which will definitely depend on the company’s capital requirements. In the case where the company has specific requirements, the entrepreneur can also take out a loan according to his needs. You will be able to choose between a depreciable loan , a revolving loan, a repurchase of credit, a leasing, the facility of cash, the overdraft and of course the factoring. However, it is recommended to use a professional loan expert to find out which professional loan is best for each situation.

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What are the eligibility criteria to qualify for a professional loan?

As with personal loans, business loans require certain elements for each file to be valid. Indeed, after the financial crisis of 2008, banks are fearful enough to grant loans to a particular project despite its solvency and strength. So, among the points that borrowers will look at, it certainly requires the solvency of the borrowing company.

In the case where the request is reliable and the borrower does not have several loans in progress, he can hope that his bank grants him a professional loan. Note that companies in the red will have trouble getting a loan to build their capital. Most issuing banks will also check the company’s balance sheet – its assets, credits, debts and more at the time of closing the accounts. It will also take a look at the operating accounts as well as the business plan and forecasts of the activity of the applicant company.