A difficult end of the month, an important purchase or investment to be made, an emergency, but also various other situations may require a more or less important additional sum of money. And when you don’t want to or can’t borrow from your loved ones, a loan from a credit organisation is a possible solution.
However, to resort to a consumer credit requires to foresee in advance the capacity of repayment and especially to choose the most adapted credit offer. Here is our advice to put all the chances on your side.
Evaluate your finances and prepare your file
Before you go to a credit organisation or a comparator of offers, you need to know whether you can afford to take out a loan contract, i.e. pay back the amount you are considering borrowing in full.
To do this, a simple balance sheet between your monthly income and expenses will allow you to know how much you can make available each month to repay without putting yourself in the red.
A stable situation, well-controlled finances and therefore a good ability to repay are your assets to receive several credit offers. If the amount to be borrowed is small (less than 1,000 GBP), your file will only consist of your identity, your proof of address and your previous pay slips.
For larger sums (up to 25,000 GBP), the examination of your application will be a little more detailed, will take more time and you may have to provide other documents such as your bank statements, …
If it is an affected consumer credit (car, boat, works,…), you will probably be asked for quotes or other prices to justify the loan.
Receive credit offers and sort them out
Before opting for such a loan contract or agreement, you must first make sure you receive the maximum number of consumer credit offers. An online simulation will allow you to inform your application to the credit agencies, including the monthly instalments you wish to pay and the duration of the credit, but also your family situation, current loans…Following this online simulation, you will receive at least two credit offers corresponding to your application.
From then on, you will be able to be the comparator of offers that correspond to your situation. It is important to carefully examine the credit offers, not only the rate offered, but also the total cost of the credit, including the total amount of interest as well as any application fees and penalties.
In fact, the interest rate is only nominal and can be subjective, so you have to base yourself on the total cost of credit to get an idea of the amounts really committed. Once these different criteria have been studied, you will be better able to sign the loan contract that corresponds to your expectations.