Getting the lowest rate isn’t that complicated. However, not all types of loans have the same conditions. The markets are different: the methods to get the best credit rate too. And then in getting the lowest rate, there is “get”. In fact, you have to make sure you can get a credit agreement for your file and not be seduced by the sirens announcing a very low rate to attract customers and see yourself get a maximum rate in the end. This is the reason why our comparator provides a real answer in principle to the APR rate displayed by organizations. Manual.
Get the lowest rate in consumer credit
It is not because the amounts involved are smaller than for mortgage that we should neglect the fact of obtaining the lowest consumer credit rate. The latter covers car loans, work credit, personal loans, revolving credit or even the repurchase of credit.
Why compare credit rates?
Take the example of a 10,000 USD loan over 48 months, in the form of a personal loan. Here is what emerges from our credit comparison:
- Cheaper fixed APR rate: 2.90% / monthly: 220.73 USD / cost of credit: 595.04 USD
- Most expensive fixed APR rate: 5.90% / monthly: 233.69 USD / cost of credit: 1,217.12 USD
Not surprisingly, a personal loan rate that generates twice the interest for exactly the same credit. The credit organizations that we compare are, however, all benchmarks in the market. You can find, for example, the astro finance personal loan, the bankate personal loan or the viloan personal loan.
Our comparison is based on the fixed APR rate. This rate is the legal reference for consumer credit since it must be communicated by all credit companies. On the other hand, it has the advantage of having to include all the costs, including the administrative costs if there are any. To get the lowest rate for amortizable loans, therefore, the fixed taeg rate should be used.
Regarding revolving credit rates, the revisable taeg rate must also be used, but not only because it is variable. There may be promotional offers and the proposed repayment rates affect the total cost of the credit.
How to get the lowest rate
Comparing consumer credit rates is good, but if you find the lowest rate and you can’t get it, the process isn’t very interesting. This is all the more true as one of the most widely used commercial techniques and to highlight very low but often unattainable rates.
Indeed, offering a 0.90% or 1.90% often only aims to bring customers. Because these offers are in the vast majority of cases limited to a reimbursement period of 12 months. If we take our example of a credit of 10,000 USD, a repayment over 12 months, even at the lowest rate, will give monthly payments of more than 830 USD. Few people have the financial capacity to repay such a sum every month.
Regardless of this business practice, financial organizations must be careful about the risks they take. To attract the best files, they can offer low rates but only select the best files. For others, it will be a counter offer of higher rates in the best of cases or simply a refusal of credit.
To work around this and help our clients obtain a low-rate loan, we have set up an exclusive system. Indeed, our credit questionnaire does not just offer a ranking of the best rates. At the end of our questionnaire, our system automatically questions the organization offering the best offer and gives a response in real time. If it is an agreement in principle, it means that the file is eligible. Otherwise, it is possible to query the second and third best offer. Each file can thus know the lowest rate that it can concretely obtain.
Personal loan, work loan, need for money…
To get the lowest rate for a personal loan, the credit agencies are mostly the most attractive. Credit from banks can be interesting from time to time provided that you have been a long-term customer and that you are a good customer (good income and savings). However, we have implemented a negotiation technique for those who think that their bank can offer the lowest rate.
For the work loan, the craftsmen’s offers are generally higher. In fact, since they serve as credit intermediaries, they generally receive a commission which increases the price in the end.
To get the lowest car credit rate, it is still the specialized credit organizations that are doing the best. They nevertheless have serious competitors through the financial subsidiaries of manufacturers such as Crelo Bank for Renault and Creditgo for Peugeot. These credits are offered directly at the point of sale by the sellers.
Manufacturers’ financial companies offer a higher rate on average. But during the promotion period, they can break the shack and go so far as to offer free credit. In this case, they are unbeatable. However, beware of the limited discounts on the sale price of the car in this case.
Negotiate the lowest rate
To negotiate the lowest credit rate, if you think you will get an attractive offer from your bank, dealer or even the construction company, we offer the following method:
- Get the lowest rate on the web
For this, nothing could be simpler, just use our comparator. Note that the objective is to obtain a formal and nominative offer. It is the essential part of the negotiation (you will receive by post and / or mail a preliminary offer of non-binding credit).
- Make an appointment
Whether with the banker, the concessionaire or the entrepreneur. Ask him the necessary elements concerning you so that he can make you his best proposal during the appointment.
- Negotiate the lowest rate
During the meeting, wait for your contact to make his proposal. Make sure it offers an APR rate, for the same duration and without insurance to compare the same thing and not what suits it.
Either it offers better than the offer obtained on the internet, or it aligns, or you already have the best rate in your hands.
In the end, you will be sure to get the lowest rate for your credit application.
Credit repurchase is a very specific system in consumer credit. It is an offer that allows you to combine all your credits into one to reduce the monthly payments to be reimbursed each month. The mechanism is to make a new credit grouping all the debts over a longer repayment period to reduce the monthly payment.
The credit repurchase amount of 50,000 USD is the average amount. The average repayment period is 8 to 10 years. The objective is to float the monthly budget and therefore obtain a credit agreement under complicated conditions. The rates in this market are quite expensive. This is the reason why it is necessary to get the lowest rate possible.
Lowest mortgage rate
In terms of mortgage, too, the APR rate rules.
On the other hand, there are quite a few non-negligible additional costs: compulsory insurance (which is not the case in consumer credit), application fees, brokerage fees. To get the lowest mortgage rate, we have implemented another method.
Get the best rate from your bank
Aside from if you hate your banker, he is the one most likely to make an initial offer, because he knows your finances in detail. Admittedly, there is a good chance that it is not a low rate credit for this first proposal but it is necessary to start with something. No need to go to an agency, an email or a call is enough because he already has the details of your income and expenses.
Get the best offer on the market
There are two ways to do this, which can be complementary. First, there are the promotional offers from banks. Home equity is the best way for banks to acquire new customers they want. In fact, they will have in front of them the complete client file. Offering the lowest rate is therefore a good way for her to bring the customers they are looking for. It is therefore necessary to monitor promotional offers from banks.
There are also mortgage brokers whose job is to find the best rate and that the file is accepted. So it’s also a very good approach. The only downside is that generally the latter have application fees. And if they do not have one, the risk is that the proposed bank will apply it to repay them… It is therefore not sure to obtain the lowest rate in the end.
Our mortgage loan comparator offers both the best current offers from banks and the possibility of requesting a broker without any set-up fees.
Compare your bank and the best offers
Once you have obtained the lowest rate on the market, we recommend that you try to negotiate with their bank because they may try to hold you back… or not. But like that, you will be comforted in the final choice.