What rate for what type of consumer credit?

Consumer credits are the forms of loans most requested by individuals. They finance the most common expenses and the procedure does not take too long. Indeed, you can benefit from your loan in less than a week.

Because of this enthusiasm for this type of subscription, financial institutions now offer many offers, which can be confusing when you have to choose between this or that offer.

One thing is certain, the best offer is the one that costs the least and to judge this cost, many look only at the rates since the interest they pay depends on this ratio. The higher the rate of a consumer credit, the higher the amount of interest.


The trend in consumer credit rates

The trend in consumer credit rates

The most attractive consumer loan offer is therefore the one with the lowest rate. However, it is sometimes difficult to know if this figure is low since it often amounts to less than 10%.

You should know that since the Lagarde Law, the borrowing rates of financial institutions must not be higher than a usury rate set by the Cream Bank. Banks that do not comply with this provision may face legal action that could tarnish their image.

Consumer credit is no exception to this rule. There is indeed a rate threshold that financial institutions must not exceed. This scale changes every three months. In this third quarter of 2015, the usury rate for a consumer loan of an amount less than or equal to $ 3,000 is 20%. For a loan between 3,001 and 6,000 $, it is 13.83%. Finally, bank rates should not exceed 8.48% if you plan to borrow more than $ 6,000.

In any case, you will understand: the higher the capital borrowed, the lower the interest rate. And the longer the repayment, the more this ratio decreases.


The rates of each consumer credit

consumer credit

There are three main types of consumer credit, each of which has its own specificity:

  • The so-called assigned consumer loans are the types of subscription in which your borrower finances the purchase of a product or the provision of a service. The most common examples are car loans (for the purchase of a car), travel loans (to finance your vacation). The rate of these types of loan most often varies between 4.9 and 9%.
  • Personal loans are the most popular types of consumer credit. This type of subscription allows you to receive a sum of money from your borrower that you can spend as you see fit. The rate of these offers also fluctuate between 4.5 and 9%.
  • Revolving credit is a subscription that gives you the opportunity to receive an amount in your bank account. You can use the amount however you want and you only pay back what you spend. Once you have reimbursed, you can use the amount that was available to you again. The rate of this type of loan is between 14 and 22%.


Some precisions

online credit

You should know that, under the same conditions (same borrowed amount and same repayment period), an affected consumer credit displays a higher rate than a personal loan.

Indeed, this last form of subscription is more risky for the borrower since the contract can be declared null if ever the transaction which you envisaged does not go well.


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