Conventional credit can cover real estate credit as well as consumer credit. In general, conventional credit is used to designate depreciable credit used to finance all types of project except real estate projects. What are the conditions for obtaining a so-called “classic” credit? Everything you need to know to find the best APR rate for your situation.
What is classic credit?
You will not find anything in this article concerning mortgage. We are not specialized in the field and prefer to concentrate all our efforts on the comparison and the search for the best classic consumer credit for all.
On our site, you will find the best conventional credit rates for car loans, work loans, personal credit and to a lesser extent revolving credit. All the consumer credit solutions offered on our comparator allow access to all project loans.
Conventional credit mostly means a personal loan without proof. This type of credit allows you to obtain a sum of money to finance projects without having to specify the reason. Travel credit is for example always obtained with a classic personal credit. It can not be otherwise.
The logic is the same for a credit for his hobbies. We advise our customers to avoid revolving credit which is a payday mechanism but which can quickly become a financial pit if it is misused. Although the small revolving credit is interesting in certain cases, we are rather for the depreciable credit, provided that it is at the best rate and really accessible to all.
Classic credit accepted or refused: the usefulness of a comparator
We have not been able to set up our classic low cost credit business accessible to everyone proper. The investment would have required too much time and would not have served to compare the offers. But let’s get around the problem by taking the best deals from all the major credit agencies. The objective of our comparison is to compose a proposal at the best rate for all profiles.
Since many organizations offer low rates for which very few people are accepted, we have developed an exclusive system that allows a non-binding assessment to be obtained from the organization offering the lowest rate.
This allows you to immediately have information on whether the best rate is really accessible. And our customers have the opportunity to get an assessment from the organizations that offer the second and third best rates. This is the system that we have put in place to put the best chances on the side of our customers in order to really get the best conventional credit rate.
This system works equally well for the car loan, the work loan and the personal loan, which are the heart of the conventional loan. For revolving credit, if it is really necessary, we have developed another technique. If you want a definition of conventional credit, we can only recommend that of the law of consumer credit.
Classic credit: car loan
The car loan or car loan is a repayable credit with fixed duration, fixed amount and fixed rate. Regarding the new car loan, it is the classic credit for which you will find the lowest rates. It can be requested for all vehicles, from credit for a mobile home to scooter credit. When you buy a new car or any other vehicle, the funding agencies have something they can hold on to if they have problems with arrears. Car credit is a loan with mandatory proof. Most of the time it is the vehicle order form.
Hanging on to a property for a financial organization means seizing the vehicle. As they master the initial value and the discount curve, they know that they are taking less risk and therefore offer cheaper car credit rates. For this type of car loan, you will need to provide proof of purchase.
For second-hand car loans, this too is a classic depreciable loan. The rate is a little more expensive but it is a credit without proof of purchase of the car.
Classic loan: works loan
Again, this is a classic consumer credit loan but subject to credit documentation. Like the car loan that we have just seen, the rates are a little lower than for the personal loan but you will have to justify the work. You will be able to see it with our work ready simulation.
Classic credit: personal loan
It is the most common form of conventional loan. The personal loan is the credit that is used for everything. To obtain a personal loan, you will have no proof of use of your need for money to be provided. It can serve you as well for a used car, a blow, holidays, a decoration to redo…
Like all conventional loans, to obtain this loan, you will have to provide supporting documents for your situation. Generally for a classic credit report, it is necessary to provide:
- Proof of identity
- Proof of income: pay slip and tax notice
- Proof of address
- Bank proof: RIB and last account statement
Revolving credit: everything except a traditional loan
For our part, it is a little difficult to classify revolving credit in conventional credit because it works differently from all that we have just seen. This credit can last indefinitely if we continue to use it and it works with an adjustable rate. Basically, you could say that it is a loan that you never know when it will end and how much you will pay.
But this is the very principle of this credit, you just need to know. Revolving credit is made to manage unexpected cash or fluctuating cash inflows. For us, it only makes sense for amounts less than a 3000 USD credit. Indeed, this is the limit below which credit organizations offer a cheaper rate in general in revolving credit.
On our site, you will not find revolving credit distributed in stores like the Darty card or the Auchan card. These store cards are only distributed in stores with payment offers dedicated to the store. We therefore do not classify them in the category of conventional credits.
In our comparator, you will find only a few generic revolving credits from large financial companies. As the rate is variable, it is impossible to maintain an objective classification over time. We have therefore chosen to compare the rates charged at the opening according to the promotions they may offer. To name just a few, Sofinco is currently offering a truly exceptional rate for a revolving credit: a rate of 3.90% for the first use of your revolving credit. In this case, we consider that it is really worth the cost, provided that we do not use it afterwards.
Best Classic Credit Rate
The advantage of having composed the cheapest offer in conventional credit by comparing those of all the largest organizations allows us to see what we can save thanks to the cheapest conventional loan. Take the example of a 5000 USD loan over 48 months:
- Least expensive rate: 5.59% / monthly payment: 116.17 USD total cost of credit: 576.16 USD.
- Most expensive rate: 13.96% / monthly payment: 134.48 USD total cost of credit: 1455.04 USD.
For the same classic credit, exactly the same credit 5000 USD over 48 months, you could pay almost 1000 USD in agios more !! More than double !!! And if you are told that you could pay double for the exact same classic loan, it is because the most expensive organization is also the best known whose advertisements you see on television every day!
So if you do not want to pay too much for your conventional credit, we really advise you to compare, we all have an interest!
Classic credit: mortgage
The mortgage industry is really different from consumer credit. If conventional credit is synonymous for you mortgage, we advise you to go through a broker specialized in the field. Once on our credit comparison, simply select “mortgage” to access the best mortgage solutions.