Choosing a lending institution is not always easy because there are so many. It is normal that you ask yourself the question of whether it is better to choose a bank or a credit organization, for example. In the end, all are equivalent, the only difference concerns the rate they will provide you but also the solution offered if a financial difficulty arises during the term of the loan.
Here are some tips to help you make a choice on the credit institution which suits you best and in the best possible conditions.
Take stock of your financial situation
First, start defining the amount to borrow as well as your ability to repay the maturities and for how long. Divide your monthly cash flow all together by three, taking a third so you will have an overview of the monthly payment that you can repay each month. Also consider any future cash flow such as the sale of a car or property. Always remember the three important criteria to choose a loan: monthly payment, duration, insurance.
Then, it is better to write your estimated budget over the entire period of your loan. This must include the annual cost of the loan, the costs of the services that each credit organization or bank offer you and the profit from savings products to be removed from the annual expenditure. These forecasts will help you adopt the credit offer that best suits your financial situation and your project.
Make comparisons among credit organizations
After having eliminated all the credit organizations that do not meet all your criteria concerning your financial situation, choose the one that is the most economically advantageous by considering the total cost of the loan.
Among the proposals of the banks, do not hesitate to check not only the total cost of the loan but that of the ancillary costs such as opening and maintaining an account, any financial costs if you find yourself overdrawn, the contribution of your bank card or the advantages of savings products. On the other hand, for credit organizations, the loan rate, processing and insurance fees are of course to be taken into account for the total cost of the loan.
Other criteria that should not be overlooked when choosing a financial institution is its reputation as well as its flexibility. It is important to prefer a serious credit organization because you sometimes commit to a very long credit period. The credit world has diversified for several years and credit organizations are now as reliable as banks. Another important aspect to consider is the way in which the possible vagaries of your financial situation can be managed, which may change over time. Check the guarantees carefully in the event of a hard blow.
Now, it's up to you to make the right decision to make your choice regarding the right credit agency that will be suitable for financing your future projects.
Find out more about credit in France: >>> The distribution and rates of credit in France
En France, four distinct sources allow credit monitoring: activity reflected in changes in bank balance sheets, collection of new credit flows, loans declared by banks (above a threshold) at the centralization of risks, conventional regional collection from 300 banks of the French Banking Federation.