An installment or personal loan, allocated or without reason, a reserve of money,… Not easy to choose from the range of solutions available in the consumer credit category.
Choosing the right type of loan for your project
There are several questions to ask yourself to determine the type of credit that best suits your needs and that way get the best rate.
I want to finance a good or service for which there is an assigned loan formula
Always check if there are so-called “assigned” (or conventional) installment loan offers for your financing needs.
This type of loan has certain advantages:
- a rate lower than what you could get with the other possibilities,
- a loan related to the financing of movable property (not real estate) or a service.
If the rates of the affected loans are more attractive, it is due to the fact that the risk taking of the lender is less. The purchased good can be resold, the service ordered aims to increase the value of another good, … The bank or the credit company therefore has guarantees to be able to recover its money.
The borrower also has more security. Because of the connection of credit to a good or service, if the sale were to be canceled for any reason, the loan would also be canceled at no additional cost.
Examples of goods and services that can be financed with an allocated installment loan:
- for a used, new or ecological car, a car loan is the ideal candidate,
- for a new or used motorcycle, there are motorcycle credits (often grouped together for motorbikes),
- to finance the purchase of a motorhome or finance the purchase of a van, financial organizations also have solutions which are sometimes the same as car loans and sometimes entirely dedicated to this type of vehicle,
- to carry out work in his home, the credit companies offer work loans which are even more advantageous if the work is intended to save energy.
And if not, there is always the possibility of the personal loan or the reserve of money
If you cannot find a solution in the category of allocated installment loans, you can opt for a personal loan or a reserve of money. These solutions do not require any specific reason. We lend you a sum of money that you can use as you see fit.
Between personal loan and reserve of money, my heart swings
The personal loan will allow you to borrow a greater or lesser amount. The credit rate and the duration of the repayments are fixed from the start. Financial organizations present it under different names (wedding credit, travel credit, all purpose credit, etc.) but it is often the same product.
Example of situations where you can consider a personal loan:
- for your interior, a decoration and development loan can allow you to finance the purchase of furniture, a new kitchen, finishing work such as painting or new parquet, etc.
- to organize your wedding and organize a beautiful reception,
- to go on vacation and finally make the trip you’ve always dreamed of,
- to help you pay for studies, the school fees, the rental of a kot, school materials, books, a computer,…
- for whatever purchases, a TV, a computer, a smartphone, to make a gift, a jewel, …
- to face a difficult situation, like when paying taxes for example or for an unforeseen expense,…
The money reserve works differently in the sense that this credit formula is renewed at the rate of your repayments. It is an opening of credit which grants you a sum of money available as long as the contract lasts. The solutions offered are very flexible and let you define yourself the rate at which you repay the money withdrawn. You only pay interest when you start the reserve. In some cases, this revolving credit is associated with a payment and withdrawal card. Otherwise, the money will be deposited into your bank account.
Example of situations where a reserve of money will be useful:
- to deal with all the unexpected of everyday life,
- for temporary liquidity needs,
- to respond to spontaneous desires with flexibility.