How to apply for credit online at the best rate?

6 Nov

Applying for credit online only takes a few minutes, but how do you make sure you’re in the right place? We will see the importance of going through an honest and regulated credit comparator to limit interest. We will then discuss all the traps to avoid in order to correctly complete your credit application.

The advantages of applying for credit online

There are several advantages to applying for credit online:

  • The ability to compare the best rates for each project, based on the APR * rate.
  • Speed: a few minutes are enough to make a request without obligation.
  • An immediate response in principle is guaranteed.
  • Most organizations allow the contract to be signed electronically, facilitating quick credit.

Starting a credit application online puts you in a strong position. The ability to compare credit offers without a bank ensures that you don’t miss the best offer. Above all, the simple comparison is accompanied by a first immediate response in principle. Credit organizations have made the issue of fast credit a priority, developing a much simpler and faster route than that of banks.

Whether it’s a small credit need, a car / motorcycle project or a credit without proof of use (personal loan), online credit specialists generally always have better offers than those of banks or other players (dealers, insurers). Taking the step to compare rates online is therefore the best way to get the most advantageous loan. Nothing prevents, however, once the best offer is obtained online, from canvassing other players.

* The APR rate is the benchmark for comparison in consumer credit. It indicates the total cost of interest, but also includes any additional costs associated with it (administrative or management fees, etc.). Our comparator is always based on the APR rate to classify credit offers.

Online credit application: how to choose the right loan?

Choosing the right type of credit is essential when applying for credit online. There are several solutions, all more or less adapted to each need. Our summary table of the advantages and disadvantages of the various consumer credit projects offered on our comparator.

Type of credit requested What there is to know
New car / motorcycle loan
  • Proof of purchase or purchase order required
  • Low fixed APR rate
Used car / motorcycle loan
  • Proof of purchase or purchase order required
  • Fixed APR rate slightly less attractive than for a new car loan
Personal loan
  • Credit without proof of use of money
  • Fixed APR rate very variable from one organization to another
Need money or loan all projects
  • Rates identical to those of the personal loan for any request> 4000 $.
Works loan
  • Proof of achievement or order form required
  • Very advantageous fixed APR rate
Redemption of credits
  • To group several credits into a monthly payment that is easier to repay
Home loan
  • The best alternatives depending on the target project.
Any credit request below 4000 $
  • Proposal of the best revolving credit solutions.

An online credit request less than or equal to $ 4000 made on our comparator suggests the best offers of small revolving credit. This small loan without proof of use is easier to obtain (see credit without tax notice) than all the others. It generally responds well to a small project, but can also help fill a small air gap financially. The APR rates are however higher than those of other loan solutions. The adjustable APR rate for this credit indicates that it can change, mainly when the money available in the reserve is reused.

Duration and amount of credit: inseparable

The choice of credit amount is always associated with a duration, generally between a credit over 12 months and a credit over 72 months (6 years). It is possible to obtain certain loans over longer terms, but it should be borne in mind that credit with an equivalent APR rate will always cost more when the term is extended.

There is no ideal period for applying for a loan, the important thing being having the capacity to repay the associated monthly payments. Borrowers with the capacity to repay larger sums without getting in trouble have every interest in favoring a shorter credit term.

Online loan application: the advantages of a comparator

As we have seen, embarking on an online credit application offers the possibility of comparing the best APR rates without pressure. Our comparator goes further than simply displaying the best offers, guaranteeing an immediate response in principle to any request. Connected to the best organizations, the tool is effectively capable of indicating which organization will accept the request. Let’s take a look at the procedure to follow by simulating an online credit request for $ 8,000 over 60 months.

Going to the next step leads straight to our online credit application form. A free and non-binding process, with the sole aim of finding the best solution to a loan request. The four stages concern identity, address, situation (income) and budget.

Once the online credit application has been completed, our comparator is able to offer the best APR rates. It does not, in fact, simply display the best offers stupidly, but also indicates the chances of receiving a positive opinion. Connected to the main credit organizations, our comparator allows you to request the three best organizations in as many clicks. For example, if Cetelem confronts us with a refused credit, it will be possible to immediately question Younited Credit and Cofidis. The organizations providing a favorable response will return within 24 hours by email, with a concrete proposal.

Online credit application: the pitfalls to avoid

Applying for credit online is not trivial, and not all offers are as good as they seem. Here are the pitfalls to avoid when applying for credit online:

Very low promotional rates = often high monthly payments

It is more of a business strategy than a trap itself. Some players (organizations, dealers, etc.) in consumer credit regularly post promotional rates on various communication channels. Most of the time, these are offers valid only for a certain repayment period, implying a credit that is difficult to repay. The objective is therefore to attract attention with a very low APR rate, without necessarily highlighting the amount of the monthly payments. Once the loan is turned down, it will be easy to suggest a less attractive one. Always take into account its repayment capacity when applying for credit online.

A consumer credit to reimburse another = danger

A request for online credit must not be motivated by the reimbursement of other outstanding credit. We must turn to a loan buyout in the event of a money problem linked to over-indebtedness. The buyout allows you to combine several monthly payments that have become unbearable on a daily basis into one.

Beware of false comparators and non-compliant sites

Credit scams abound on the internet. To recognize a reliable site, you must ensure that it is registered with the ACPR or as an intermediary with ORIAS. Here are the cases to be wary of:

  • The site is not registered with the ACPR or ORIAS
  • The offers are not clear and do not include the APR rate
  • A credit promise is made (by email or on a site) but is conditioned by the payment of a contribution

Whether it’s an online credit application or a promise received in your mailbox, you should always be wary of lapsed offers. The most common scam is to ask for bank and personal information before you even receive even a credit agreement.