Do you need money quickly, but don’t really know what and how a personal loan, also called consumer credit, works? Here is a small guide that should help you see a little more clearly and help you make the right choices and find the consumer credit that suits you best.
Do you need a personal loan quickly? Here is the essential information to make the right choice and speed up your search.
1. Let’s start by seeing more clearly among the different types of loans.
First of all, it is important to know that a personal loan makes it possible to finance the purchase of a service (vacation, wedding…) or of a good (telephone, computer…) that you are not able to finance in cash. It has the advantage of being flexible and quick to obtain and of not requiring proof in most cases. However, this credit can take different forms, let’s try to see a little more clearly.
- Affected credit: this is a credit intended for the financing of a very specific object such as a kitchen, which you will need to justify the purchase by means of an invoice or at least a quote. You will not be allowed to use your credit for anything other than what it was used for.
- Personal credit: no need to justify anything with the personal loan, the credit organization lends you a sum of money that you can assign to what you want provided you repay the monthly payments of your credit and pay the interest.
- Revolving credit: is a form of credit where a reserve of money is made available to you and which you can use according to your needs either using a credit card or via a transfer to your bank account. This type of credit, often with a high interest rate, offers great freedom since you can choose to use it or not.
2. Then let’s see how to choose the right loan
Before even choosing a loan, you will have to start by analyzing your personal situation and your debt ratio. To do this, you just need to calculate the difference between the amount of your income and that of your expenses. Your debt ratio should not exceed 33% of your income.
Then, you will need to compare the different credit offers, to do this you can use credit comparators like mistercredit.be for Belgians and Meilleurtaux.com for French. To compare the offers, start by analyzing the overall effective rate (TEG), this is the reimbursement rate which includes all costs. To find out, you will need to know the amount you want to borrow and the number of monthly payments you want to repay. Also remember to watch that there are no hidden fees and analyze the possibility of prepaying.
3. Yes, but how do you seek credit?
The rise of the internet has turned the world of credit upside down, since most serious lending organizations offer to simulate and take out credit online. Other sites such as those mentioned above allow you to compare the different offers available to you. The advantage of the internet is also that you do not have to face the gauze of others when you apply for your personal loan.
However, you can still work the old-fashioned way, starting with your banker and explaining your needs. It is however recommended to compare the different personal loan offers in different banks or with different credit brokers, the rates can vary quite widely. Also note that in some cases, it is possible to negotiate with your banker or with your credit organization.
4. I need money, how can I get my credit quickly?
In general, applying for a personal loan responds to a quick need for money. So, if you want to get the funds you need quickly, you must start by properly preparing your file by properly preparing the supporting documents (identities and income) that you will need. Once these documents have been sent to the credit organization you have chosen, your file will be analyzed quickly and if your financial situation allows, credit will be granted to you and the money will be paid to you quickly.
If your file is a little more difficult (unemployed, banned banking …), you must prepare for it to take a little more time and possibly have to negotiate to get your credit. To do this, it is recommended to prepare a file to certify your creditworthiness, by listing your expenses and possibly by listing the efforts you can make regarding certain items such as reducing your phone bill. The best way to get your credit is to show that you are a responsible person and to convince the lender that you will be able to repay.