Why do a consumer credit simulation?
A consumer credit simulation does not have contractual value, it nonetheless remains an essential step in your acquisition project, the one where you establish your budget. A consumer credit simulation therefore allows you to determine how much you can borrow, but also to calculate your monthly payments and the cost of your future loan. All this for free. Once you have done this preparatory work, you can carry out a consumer loan simulation with a credit organization such as Tinker Bell.
When to perform a consumer loan simulation?
Our consumer credit calculators can be used at any time and without limitation, even if you have no specific project. On the other hand, if you know what you want to buy, we strongly advise you to carry out simulations in this case before applying for a consumer loan. You will thus have a 1st idea as for your budgetary capacity.
Is the consumer credit simulation engaging?
Do not panic. Whichever calculator you use, it is by no means an engaging process.
These tools are simple consumer credit simulators , that is to say calculation tools to easily prepare your consumer credit application. You do not have a document to sign or contact details to provide. You will therefore never be contacted by one of our advisers.
Likewise, the results obtained are purely indicative. They do not constitute in any case a commercial offer.
On the other hand, it is quite possible to make a simulation of consumer credit, then to compare the loan offers by filling one of our forms. Clear,
- First, you do a simulation to gain an overview of the economic feasibility of your loan request;
- Then, once you are comforted in your project, you put credit institutions in competition to obtain the best rates. After filling in the requested information, you instantly receive several loan offers. You will then be contacted as soon as possible by one of our advisers.
What consumer credit simulation tools do I have?
What is my debt ratio? What purchasing capacity do I have? What is the cost of my monthly payments and my future consumer credit? So many questions you need to ask yourself before signing the loan offer. Our consumer credit simulation tools are there to help you:
- The debt ratio calculator. You determine the share occupied by your expenses in your budget. For consumer credit, banks generally tolerate a debt ratio of 50% (compared to 33% for a mortgage). To calculate it, nothing very complicated, you just have to enter your charges and your income;
- The “purchasing capacity” calculator. You simulate the maximum amount that you can borrow from a lender. You indicate the type of consumer credit desired (car credit, motorcycle credit, personal loan…), the repayment, the duration of the credit and the interest rate;
- The “APR (annual effective annual rate)” calculator. This rate includes all costs related to the transaction (debit rate, possibly the costs of file and insurance). It is the best indicator of the cost of a loan and therefore makes it easier to compare offers of consumer credit.
By entering the capital borrowed, the duration of the loan, the interest rate and, if applicable, the insurance fees and administration fees, you will have an overview of your APR. Clarification: the result is indicative and not contractual. To benefit from personalized offers, do not hesitate to use our consumer credit comparator;
- The monthly payments calculator. This simulator lets you know the level of your future consumer loan maturities.
Consumer credit simulation: how does it work?
Nothing too complicated. As for the real estate loan simulation or for the credit buyout simulation, you choose the consumer credit simulation tool that interests you and you fill in the requested fields.
For example, for the “monthly payments” calculator, you must specify your project (car, motorbike, work…), as well as the desired amount and duration of the loan. The APR (that is to say the overall cost of the loan expressed in the form of a percentage) is indicated automatically, depending on the amount and duration of the loan entered previously.
What should I know before performing my consumer loan simulation?
Is your project clearly defined and are you ready to carry out a simulation? We give you the latest information before you get started:
- There is not 1, but several types of consumer credit. The Consumer Code lists personal loans, revolving credit and restricted credit. To these 3, we must add the credits linked to a specific project, but which are in reality personal, revolving or earmarked loans proposed by a lending organization. For example, what is called the car loan is a trade name behind which a lender or broker offers a restricted loan or a personal loan.
In another category of consumer credit, we can also cite LOA (rental with option to buy) and LLD (long-term rental), even if these are not strictly speaking loans, but rather solutions funding.
The LOA allows you to rent a vehicle with the possibility of buying it definitively at the end of the rental period. The LLD works on the same principle, but you do not have the option to buy.
- The law limits the amounts for consumer credit. You cannot take out a consumer loan below 200 $. The ceiling is set at $ 75,000;
- In terms of duration, you must borrow for a minimum of 3 months. However, there is no maximum duration. However, the offers made by the lending organizations generally do not exceed 84 months (7 years).
A credit commits you and must be repaid. Check your repayment capacity before you commit.