Personal loan simulation at the best APR rate
Performing a personal loan simulation can avoid ending up with far too expensive credit. The APR rate now makes it easy to classify the best offers, subject to having access to an honest credit comparator. We will see how to make a real simulation of personal loan, before putting our finger on the pitfalls to avoid.
Personal loan simulation, who to trust?
The personal loan is a credit generally without proof of use of money. Very requested, it allows to realize all conceivable projects. A few points should be checked before performing a personal credit simulation:
- The ranking of offers must be made on the basis of the APR rate
- Is the personal loan simulation free and without obligation?
- Do the credit rates displayed take into account the amount requested and the desired repayment term?
- Is the intermediary offering the simulation reliable?
A personal loan comparator must incorporate the best online credit specialists to be legitimate. The personal loan is a credit very requested, but also proposed by all the actors of the consumer credit. Our experience shows that the APR rates offered vary greatly from one offer to another, sometimes involving a cost of credit two to three times higher. A comparator offering only two or three offers clearly has no interest.
APR rate and simulation of personal loan
The APR rate is the benchmark indicator for calculating the cost – and interest – of a personal loan. Mandatory on all credit offers, the APR rate includes the total and actual cost of credit. All possible costs linked to a credit must effectively be included in the APR. This rate is always fixed in the case of a personal loan, indicating that it cannot change over the entire duration of the contract.
Personal loan simulation: the best APR rates
We will see that the repayment duration significantly changes the APR rate of a personal loan simulation. It is an implacable logic: lenders are less cautious when they have the assurance of quickly recovering the amount and associated interest. In general, the best APR rates are found associated with the shortest repayment terms.
|For a personal loan of $ 8,000||Best fixed APR rate from our comparator||Monthly fees||Total cost of credit|
|Over 12 months||1.00%||670.27 $||$ 43.24|
|Over 24 months||3.29%||344.70 $||271,80 $|
|Over 36 months||3.89%||235.56 $||480.16 $|
|Over 48 months||3.90%||180.03 $||641.44 $|
|Over 60 months||4.39%||148.43 $||905.80 $|
Beware of too flashy rates
It is not uncommon to see promotional offers advancing a fixed rate of 1.00% APR, over short repayment periods. While certain promotions are entirely acceptable, others display conditions that are difficult to assume financially. For example, a fixed APR rate of 1% offered for a personal loan of $ 8,000 involves repaying $ 670.27 every month.
Overly commercial offers are meant to attract attention and rarely represent a simulated affordable personal loan. This is why it is always important to check all the conditions of a promotional offer before performing a personal loan simulation. Above all, it is essential to distinguish between the posted APR rate and the actual credit offer. A rate displayed at the start of a credit request can actually be different on the final contract.
Personal loan simulation: define your budget
The best credit is the one with the most attractive APR rate, but the latter has no use if the loan is refused. Defining your monthly repayment capacity makes it easier to simulate a personal loan. To calculate his budget and thus formulate a coherent request, it suffices to deduct his income from incompressible charges (rent, food costs, etc.) You should obviously not forget to declare any additional credits or other ancillary costs.
Credit institutions have an obligation to check the debt ratio of an applicant. They can therefore refuse a credit on the grounds that the applicant’s repayment capacity is not sufficient. Finally, it is essential to be aware of your repayment capacity before embarking on a personal loan simulation.
How to make sure you find the best personal loan?
Our comparator ranks the best credit offers, but above all it provides an immediate response in principle. Let’s see how to proceed to carry out a personal loan simulation.
- Enter “personal loan”, the desired amount and the associated credit duration.
- Complete the credit form in minutes.
- The organizations offering the best APR rate provide an immediate answer in principle.
- In the event of a favorable opinion, the organization with the best rate returns with a final proposal by email within 24 hours.