Before you subscribe a credit, ask yourself some common sense questions. And above all, take the time to take stock of your budget! If it is already somewhat unbalanced, make a check-up of your resources and expenses beforehand.
Avoid too heavy a commitment
Before taking out a loan, make sure you do not make a commitment too heavy. Make simulations with the calculators of our site and do not hesitate to ask simulations to your establishment. They will show you exactly what repayments you will have to make based on the amount borrowed and the duration of the loan. Do not forget that, except in exceptional cases, monthly payments continue to be due even if your income has decreased. Keep some room for maneuver.
There is often an arbitration between the amount of the monthly payment and the total cost of the credit. Indeed, to have to repay a supportable sum each month, you may be led to take a very expensive credit. Why ? Because the lower the monthly payment, the less you repay capital and, consequently, the higher the cost because the duration is longer.
Read the loan offer carefully
Whether for a mortgage or consumer credit, the institution will send you a preliminary loan offer that describes the characteristics and terms of the loan. From the date of receipt of this offer, which is valid for 15 days for a consumer credit and 30 days for a mortgage, you have a period of retraction or reflection. Remember to use this period to think about how to handle your future commitments before the actual signing.
When comparing the different offers that are made to you, consider all the elements. Make your comparisons from the proposed TEG (Total Effective Rate). Mandatory in all offers and all lending acts as well as in advertisements, it allows you to have a vision of the overall cost price of your financing and compare it to competing credit offers. The TEG incorporates all of the costs necessary to realize your financing: nominal interest rate, administration fees, compulsory insurance costs. Please also consider the other selection criteria: insurance, guarantees the conditions of early repayment described in the loan contract etc … Of course other advice adapted to the type of loan subscribed (real estate or consumption) are given in the corresponding sections
When you take out a credit, the rate you are granted can not be higher than the rate of wear and tear. This rate is calculated every three months for each type of loan based on the average rates applied by the banks during the last quarter. It is published in the Official Journal at the end of each calendar quarter and can be consulted on the Banque de France website.