Consumer credit: what is the best rate that can be found?

Do you want to take out a consumption credit to finance your project? Find out what are the best rates of the moment.

Buying a vehicle, carrying out work, financing a trip … With a consumer loan, you can borrow between 200 and 75,000 USD over at least 3 months. It is possible to subscribe this credit from a bank, a specialized agency or even a large company.

Make a good budget before buying a credit

Make a good budget before buying a credit

Before subscribing to a consumer credit, it is essential to define your budget. The amount to borrow to finance your project will depend in particular on your debt ratio. In fact, the lower the rate, the more attractive your profile is for lenders. The maximum debt ratio generally accepted by banks is 33%. However, depending on the borrower’s profile, credit institutions may accept a higher rate.

If there is no need to make a personal contribution to consumer credit, this amount can provide attractive borrowing conditions. The higher the personal contribution, the more likely the lender will be willing to give a low interest rate or a longer repayment period.

Finally, although it is not mandatory, the subscription of a borrower insurance is advised to cover a consumption credit. Some banks make it a prerequisite for credit, depending on the profile of the applicant and the amount borrowed. If you decide to join this coverage, you will need to include the amount of the contribution in your budget.

Consumer credit: what are the best rates on the market?

Consumer credit: what are the best rates on the market?

This table presents the different rates charged for a credit of 15,000 USD repayable over 12 months. As a reminder, the annual percentage rate of charge (APR) takes into account the overall cost of the loan, unlike the nominal or debtor rate put forward by certain institutions.

Type of credit

TAEG min

Average TAEG

TAEG max

Auto / Moto Credit 0.94% 1.83% 4.40%
Works Credit 0.94% 1.89% 4.40%
Personal Credit 0.94% 1.28% 2.20%

These rates may vary depending on the borrower’s profile, including age and employment status.

Tips on finding the best credit rate

Tips on finding the best credit rate

Identify your needs beforehand

Before you start your research, you need to take stock of your financing needs. In other words, you need to determine the amount you want to borrow as well as your debt capacity. Otherwise, it will be difficult to find an offer at the best rate.

Use an online credit calculator

After determining the amount you want to borrow to finance your project, you will have to find a consumer credit offer on favorable terms. For this you can use an online simulator. This tool gives you access to the best rates offered on the market with complete transparency. If online credit simulation has no contractual value, this is an essential step in thinking about financing your project.

Compare the right indicators

Credit institutions should display a number of information on their loan offers to facilitate comparison for their clients. To choose your lender, you will have to dwell on the APR, the amount of the monthly payments, the amount of the fees and the cost of the borrower insurance.