To offer an objective personal loan comparator and define the TOP 3 of the best offers among the largest credit organizations, one must be very vigilant on the following points:
- Use the legal rate of the personal loan: APR (Annual Effective Total Rate)
- Be wary of inaccessible promotional offers
- Trust only known financial organizations
But offering a personal loan comparison is not enough to avoid certain pitfalls. So we have also put together tips and advice to get the best personal loan rate in as many cases as possible.
NB: Our exclusive personal loan comparator not only makes it possible to obtain the classification of the best rates from the largest credit organizations but it also provides a principle response in real time from the cheapest organization. This lets you know what better rate everyone can actually get. It is also possible to access a simple classification thanks to our credit comparator.
Personal loan comparator: APR rate
The annual percentage rate (APR) includes all the costs included in a loan, including administration fees. It is therefore the rate that must serve as the basis for any personal loan comparator. Many loan comparators ignore this when presenting rankings that benefit them but not necessarily the customers. Always check this rate before taking out a loan.
Distrust of inaccessible promotional offers
It is very common to see offers of the “ rate from 1.00% ” or even “ 0% rate credit ” type, especially at car dealers. For all these offers, the mechanics are generally always the same:
The advertising rate is only valid over a credit period of 12 months. However over 12 months, the monthly payments of credit explode. For example, for a credit of 8000 USD, the monthly payments to be reimbursed will be more than 650 USD , which very few people can afford. But it does not matter, the “marketing” trap worked: the customer called and the advisor can then propose another offer over a longer period so that the credit can be accepted BUT the rate will no longer be at all even !
This is particularly why going through an auto loan comparator will avoid any unpleasant surprises. And our other advice is to sign nothing without comparing the loans and their rates before. Take the time, because a loan commits over several years in most cases.
Trust only big brands
The credit scams are multiplying with the development of internet. And the operating mode is almost always the same: a person testifies to have been in great financial distress, no bank having wanted to lend him money. A mysterious individual, Mr. X or Y, got him out of this bad patch thanks to the best credit that we can find on the market, from 500 USD to 500,000 USD!
Systematically avoid these testimonies which are only scams and trust only in large known financial organizations like Viloan or Demito. Regarding personal loan comparators, it must be verified that they are registered with ORIAS as can be the Capitaine Crédit under registration number 14006971 as a non-exclusive agent in banking operations and payment services (MOBSP ). It is the single register of insurance, banking and finance intermediaries. A good personal loan comparator will necessarily be there.
Why go through a personal loan comparison?
Our personal loan comparator often offers different rankings. Credit organizations all permanently offer thousands of offers. Indeed, if we cross all possible repayment durations with all amounts and all types of credit, we obtain thousands of possible combinations. And an organization can sometimes offer the best new car credit but a catastrophic personal loan rate. This is the reason why, it is essential to compare the personal loan.
To be even clearer, we decided to take a concrete example. Take the example of comparing a consumer loan in the amount of 10,000 USD over 60 months. Without doubt the most requested credit in France. Our personal loan comparator shows the following difference (statement made in March 2017):
The cheapest taeg fixed personal loan rate: 3.20% monthly payment: $ 222.02 cost: $
656.96 The most expensive fixed taeg personal loan rate: 5.90% monthly payment: $ 233.69 cost: $ 1,217.12
It’s almost double to double for exactly the same credit. And if we compare the personal loan of the latter and the former, it is because the brands are as well known as each other. But it is essential to check the current ranking of the personal loan comparison before committing because the offers change all the time.
Negotiate your personal loan
For those who hope to get a better rate from their banker without going through a personal loan comparator, we still recommend checking before and negotiating their credit.
Although bankers only accept the best files and they are on average more expensive than specialists like Bankate or Bonabank, some prefer to question them anyway (they are not necessarily wrong if they are “good” clients). In this case, here is our negotiation technique to get the best personal loan :
- Get the best offer from consumer credit specialists through our personal loan comparator. In this way, you concretely obtain the best offer for your own file. A prior offer will be sent by mail. It is not engaging until it is signed but allows to show that we already really have a first offer.
- Make an appointment at the bank.
- Go to the bank to get a simulation of their best rate. At that time, you have to take out the offer you received thanks to our personal loan comparator. Either they can do better, or you already have the best deal.
Personal loan: what type of credit?
A personal loan designates any type of credit not allocated to a specific acquisition. In other words, a personal loan is a credit for obtaining a sum of money which the borrower does not have to justify its use.
Because if the personal loan is a little more expensive than the new car loan or the work loan, there is no documentary evidence to provide concerning the use of the funds made available. Our personal loan comparator also allows you to obtain a car loan comparison and a work loan comparison by choosing this type of project in the simulator.