The market for online comparators is booming thanks to the internet. Finding sites that collect and compare prices from all web resellers, often allowing you to add a myriad of options, is now an integral part of the first step toward finding the best buy. Indeed, for most Internet users, this is the first step before any investment. Price comparators have access to a huge amount of information through software that actively searches for and exploits web pages and enables selective and relevant sorting before committing. It is now possible to compare travel, hotel bookings, retirement home prices, daily consumer goods, insurance and even various credits including consumer credit. How to navigate and how to trust a comparator over another?
Consumer credit comparators: transparency, reliability and independence
The legislation is clear on the subject. Sites that are sellers or resellers of the product they are comparing are often considered to be illegal, and often put their own product at the top of the list, thus offering the public erroneous comparisons and misleading advertising, biased to their own interest. Of course, some sites resell the products they compare and major brands are already using this process. However, the law allows these cases when the company uses an agency that sources product prices and compares them in place of the company. This is how the comparison remains neutral and does not take advantage of any brand. Thus, if the brand offers a comparison, this process is that it is no longer judge and party and the comparison is accomplished in an honest and healthy way.
Compare a consumer credit
In order to be able to effectively compare a consumption credit, it is necessary to compare the good elements. For a credit, the first element to compare is the APR, that is the Annual Effective Rate, which is the interest rate that will be used for the duration of the loan. For an APR to be interesting, it must be fixed or even degressive, ie it can be revalued downwards. If it is fixed, it indicates that it will not increase during the term of the loan.
It is also possible to compare the consumer credit insurance offered by the lender. The insurance of this type of loan is however not compulsory and the organizations do not oblige the borrowers to subscribe to it. In addition, since the Lagarde law, nothing prevents the borrower to compete and choose insurance that is external to the borrower. This new device now allows the consumer to choose the most interesting insurance on the market.
The comparison can also be made on the return of consumers who can compare products or banks and financial organizations offering credits by giving them notes online. These assessments measure the trust users place in these institutions. The borrower can, at first glance, compare the confidence index assigned by his peers.
Finally, when one subscribes to a bank loan, in the majority of cases, the bank or the banking institution may charge a handling fee at the opening of the loan. These handling fees include the analysis of the documents submitted by the borrower and all the administrative procedures to be carried out. These fees can be compared by the borrower. For the consumer credit, it should be noted that many banking organizations include the administrative fees in the APR or do not offer them for consumer credit. Of course, everything depends on the amount and duration.
How to compare a consumer credit
Several elements make it possible to compare consumer credit. The consumption credit can be an assigned loan, such as a car loan, which concerns the purchase of often predefined properties. But the consumption credit can also give access to a sum of money, without the sum being allocated to a specific property. It is thus possible to buy computer equipment, household electrical goods, to cope with an exceptional situation. This loan is less financially than a conventional loan and therefore the term is often much shorter. The operation of the consumer credit is however the same as for these usual credits and its characteristics are defined in Article L-311-1 4 ° of the Consumer Code. The important element is: a credit must always be repaid. Three main elements can be chosen for an effective comparison: the duration, the amount and the age of the borrower. The price comparator will help make the first selection by doing a macro comparison.
The duration gives an idea of the commitment over time and allows to create of the repayment schedule. Depending on the APR, the borrower repays fixed monthly installments staggered regularly over a period of time. Thus, the price comparator first asks you to select a duration. This time represents the time you will put in repaying your credit. The amount is also requested, it is important to give an exact amount and set this amount in advance, assessing your needs well. If age is requested, it is because of your repayment ability. The higher the loan, the more advanced -age can be a brake. Just as a very young age will denote that you are still a student for example and will question the organization that may require a guarantor.
The advantages of the credit comparator
It allows you to identify the relevant proposals within a large set of offers and to select them upstream using identical criteria. It is difficult at times to get a comparison if one of the criteria is significantly different when addressing each organization individually. The comparator allows a healthy comparison based on common criteria.
The comparator also makes it possible to obtain a list of organizations which, even if it is not always exhaustive, represents the majority of the actors of the market. With this list, the borrower can easily identify a list of companies whose interest can be studied individually.
Comparators of consumer credit must also be able to bring expertise in their field. Favoring a site specialized in a specific field may be the right choice, a comparator also offering a newspaper, blog or complementary documents to the theme will prove a plus. Since the consumer credit is a real financial and personal project, it is important to be able to read and learn about the subject before actually leapfrogging.
Finally, the credit comparator makes it possible to modulate the criteria of the loan very substantially in order to find exactly the amount and duration necessary for the chosen project. In addition to helping to find a financial institution, it helps upstream the borrower to project and visualize concretely how the operation will take place. The borrower will be able to easily consider several scenarios and evaluate what will best fit their own situation.
Most consumer credit comparators are there to help the consumer to build an idea of the market, to discard suspicious offers because too easy to access or too cheap and offers too expensive. The comparators also make it possible to build an image of the project and to constitute a temporal scheme of the repayment (loan duration, amount, visualization of a schedule). Credit comparators are the first stone of a project, before moving to the micro-selection or selection stage in detail. Fortunately, the credit comparators offer directly on their site the link to the financial organizations and banks offering the credits. The borrower can directly make his first requests online by clicking on the link.
Once a certain number of suitable organizations have been selected, the next step is to meet directly with the right people within these organizations and to continue the comparison on other, more secondary, but equally important criteria. For example, the free reimbursement, the ability to buy back the credit, the credit carryover are all elements that constitute the credit agreement and will be determined in the last phase, before choosing your organization. Ensuring that the rate is fixed and not variable or revisable can also be part of this phase where supply is analyzed in detail. In the case where the rate would be revisable, it is a matter of verifying that this rate is capped, that is to say, that it can not exceed a certain amount.
It is these little details that will make the difference in the final stretch, between two organizations that will make a similar proposal with the same APR. These last elements can also be part of the negotiation with the organizations and will make that you will obtain the best offer of the market. Consumer credit can indeed be negotiated and discussed. And finally, it is also the relationship that you can maintain and develop with the interlocutor dependent on the financial institution, its quality of listening and also the confidence that you will be able to grant him that will make all the difference. top