Consumer credit | Credit simulator

Consumer credit | Credit simulator

What is a consumer credit?

What is a consumer credit?

Consumer credit is a type of loan granted by a bank or financial institution to an individual for the purpose of financing the acquisition of a good or service. By definition, consumer credit, also commonly known as consumer loans, is used to finance consumer goods.

The credit conso is for individuals and can finance private expenses. Thus, companies and non-profit organizations can not benefit from this type of loan. It also means that an individual can not use such credit to finance a project in the context of a professional activity. However, if the use of the financed property is mainly for a personal purpose, it is then possible to take out a consumer loan. For example, if the vehicle is only used occasionally to make deliveries, but mainly to get to work, then the beneficiary can claim a credit. You can use our credit simulator to compare all the consumer credit offers. For example, it is possible to resort to car financing.

I need a quick loan, what to do? Use a credit simulator!

I need a quick loan, what to do? Use a credit simulator!

Conso is often used when there are significant expenses, which are usually unexpected and for which the immediate budget is not available. It is therefore a viable solution to cope with the unexpected, because allows to stagger its expenses. To apply for a consumer credit, you must first find out about the offers available in Belgium. It is not possible to obtain this credit without a bank. To do this, do not hesitate to make a simulation ready before heading to a specific organization. To do this you can use a credit simulator. In principle, if you have a healthy expense and it is not a very large amount, the loan process can be relatively quick. Download our planner We help you manage your budget If the need is really pressing, we advise you first to contact your bank to inform your adviser of the situation and take any measures. Then, refer to the next paragraph to learn about the different financing options available to you.

What are the forms of consumer credit in Belgium?

What are the forms of consumer credit in Belgium?

Personal credit

This is a loan to borrow an amount ranging from € 500 to € 150,000 to finance a personal project, such as the acquisition of a new boiler, a second vehicle or the financing of a trip six-month humanitarian mission in Mali. Consumer credit rates in Belgium range from 5.2% to 10% depending on the amount, the repayment period and the financial institution chosen. As part of a personal loan, the borrower must not justify his purchases and he is free to define the amount he needs. Use a credit simulator will allow you to play with the data and see which offer fits you best. To find out more about how loans work in Belgium, read our loan guide.

The installment sale

This new TV is eyeing you because it is on sale but you have already had big expenses this month? Some brands allow you to buy their products on credit for the payment of fixed monthly payments and whose repayment period is defined in advance. Often, this period does not exceed 12 or even 24 months and the interest payable is generally higher than that of a personal credit since the sellers take a margin.

Leasing

Leasing is a lease that allows you to acquire property by a monthly lump sum payment that is also known as a royalty. At the end of the contract, it is possible to acquire the property at the price defined at the beginning. This is particularly the case for certain car leasing contracts that allow the driver, if he wishes, to acquire the vehicle at the end of the contract.

Bridge credit

The bridge loan is an atypical loan in that it corresponds to a cash advance repayable in a single payment and is granted to an individual while waiting for the receipt of a large sum. This type of credit is used in the context of the resale of a house in order to acquire a new one. Indeed, it may take some time to resell his house and receive the payment on his account. In the meantime, it is possible to use a bridging loan to finance a new residence, which will be repaid in one go thanks to the money obtained on the resale of the old one.

The ease of discovery

It is possible to request an overdraft facility associated with your current account. This allows among other things to react quickly in case of unexpected expenses by drawing on your overdraft. However, the limit depends on the account and the financial institution chosen, so it is advisable to check with your bank if you wish to consider this option. Keep in mind, however, that if you exceed your overdraft limit, you will have to pay extra fees that can be very expensive. In addition, this option requires that you be involved in your personal finances: an account constantly in the negative gives a bad image of you to your bank and could play tricks in the future.

The opening of a credit line through a credit card

By means of a credit card, it is possible to open what is called a line of credit or revolving credit. The principle is simple: according to the chosen credit card, you benefit from a reserve of money in which you can draw indefinitely since it is renewable. However, you must repay a minimum amount each month in order not to pay interest. This can be a handy solution in the event of a glitch, provided you make the repayments every month. Feel free to use our credit card simulator to compare offers on the Belgian market.

What can I buy with a consumer credit or a consumer loan?

What can I buy with a consumer credit or a consumer loan?

With a consumer credit, it is possible to acquire different types of goods or services. This ranges from the replacement of a washing machine at the end of life to the renovation of a room for the arrival of a child, a second vehicle or the financing of a personal project such as a wedding. The consumer loan is a credit like any other and commits the beneficiary to repay it within the time allowed and with the payment of interest.

Can I finance a house or apartment with a consumer credit?

Can I finance a house or apartment with a consumer credit?

The answer is no. Here we have to differentiate consumer credit from mortgage credit, which makes it possible to finance real estate. In fact, as part of a mortgage loan, the bank applies for a mortgage on the property to guarantee the repayment of the sum borrowed. In case of non-repayment, the lender is then entitled to seize the property and resell it. Since a house or apartment is not a consumer good strictly speaking, contracting a consumer loan is not possible. To find the best offer and finance a project that meets the criteria for obtaining a credit, please use our free credit simulator.

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