Performing a personal credit simulation is essential to obtain the best APR rate. The personal loan, without proof of use of the money, is offered at sometimes completely different rates under the same conditions. We will see how carrying out a credit simulation using a comparator can avoid paying hundreds of USD in interest.
Personal credit simulation: the best rate or nothing
Personal credit is a consumer credit without proof of use of funds . Very popular, it is also offered by the majority of banks and credit organizations. Let us take stock of the conditions of this loan:
- Amount: $ 1,000 to $ 75,000
- Duration: 12 to 84 months (sometimes longer)
- Special feature : credit without proof of use of money
- APR rate: fixed
Why use an online comparator?
The credit comparator is the essential tool for any personal loan simulation, provided that it
brings together several criteria:
- Classification only based on the best APR rates
- Principle immediate response
- Competition of the largest credit organizations
Obtaining a first positive opinion online is an important first step in the search for the best credit . Banks or car dealers – in the context of a car loan – indeed only rarely offer better solutions than those of credit organizations.
What does the APR rate represent on a personal credit simulation?
The APR rate, or overall annual effective rate, must be mentioned on any online credit simulation. Otherwise, it is not an honest comparison, since the rate allows the offers to be classified unambiguously. The APR calculates the real cost of a loan . To do this, it must include both interest and any administrative costs. The results of a personal credit simulation performed on our comparator are only based on the best APR rate.
Personal credit simulation
Let’s use our personal loan comparator to carry out a personal credit simulation. We have chosen to compare a 10,000 USD loan over 48 months and another 15,000 USD in 15,000 USD over 60 months.
Comparison made in August 2019, rates likely to change constantly depending on the offers.
It can be seen that the differences in APR rates are very significant from one simulation of personal credit to another. The interests of the same credit of 10,000 USD over 48 months are for example doubled at the third best organization, applying a rate APR much higher than that of the best credit. In both cases, however, they are credit specialists.
APR rate too low = mistrust
Our mission is not to stupidly display the lowest consumer credit rates of organizations, namely those of advertisements. Promotional APR rates of 1.00% or less are often reserved for a handful of French people . Regularly conditioned by repayments in 12 or 24 months, these loans generally generate unaffordable monthly payments.
The most important thing is not to carry out a personal credit simulation at the lowest rate but rather to find the lowest rate suited to its repayment capacity . This is the reason why it is interesting to question yourself about your monthly repayment capacity before starting any simulation of personal credit.
Personal credit simulation: all stages
Performing a personal credit simulation online marks the first step in obtaining a loan. This step takes only four to five minutes on our comparator. Here’s how to do it, step by step.
- Fill in “personal loan”, “loan for all projects” or “need for cash”, the amount as well as the repayment duration on our form.
- Complete the four steps necessary to calculate the best APR rates among the largest organizations.
- The best organization is immediately questioned, and provides an immediate response in principle . An acceptability rate greater than 50% indicates that the loan – subject to providing supporting documents – will be accepted. A refusal results in a rate below 5%. In this case, it is possible to query organizations ranked 2nd and 3rd in one click.
- Confirmation is made by email within 24 hours once the credit has been accepted by one of the organizations .
- The last step is to print or request receipt of the credit agreement by mail, before sending it back with supporting documents. Some organizations even offer to sign electronically, to reduce delays.