Tips for home and auto loans
Before you borrow, you must identify the use of the money that you want to borrow: - If a project is defined as work in your house or buying a new car or a holiday departure. You opt for a personal loan. - If the answer to an urgent goal in undefined or multiple expenses, you will go to a revolving credit (also called reserve money).
CREDIT Personal loans: a loan is not affected, you should not provide any proof of expenditure. It is distributed by credit institutions and banks. You use your money as you want (home purchase, cash, additional financing, travel ...). At the conclusion of the contract are fixed amount, rate and repayment terms. You repay by a constant partier mensualtié of interest and principal according to the schedule defined. Know that you benefit from the protection provided by law for consumer credit (prior offer of credit withdrawal period ...). The loan must be less than or equal to 21500 € for a period less than 3 months. You can more easily negotiated rates, fees and insurance records. However, the loan is not affected if the property purchased is defective or not delivered, you must continue to repay. Reserve money, also called revolving credit, revolving credit, is making available a sum of money, used in whole or in part, within a maximum authorized amount. The reserve available, non-accountable expense, is free if it is not used. It is reconstituted gradually as repayments. Banks, some department stores and hypermarket chains or institutions mail and agencies that specialize in consumer credit offers revolving credit as a financing solution. In some cases, the opening provides access to a credit card (which is on the back the words "credit card"). For revolving credit, the offer is required prior to the original contract for any increase in the amount available. You must see this offers the maximum amount of credit granted and the percentage rate (APR) annually in addition to legal information.
The preliminary offer must specify: • the length of contract is limited to 1 year renewable • the lender must inform 3 months prior to maturity, the borrower, the conditions for renewal of contract • the terms of repayment installments (unless otherwise agreed by the borrower) credit when the borrower no longer wishes to receive its appropriation. The preliminary offer is valid for 15 days. The borrower has a withdrawal period of 7 days after signing the credit agreement.
Moreover, the preliminary offer is mentioned: • if the insurance is compulsory for the financing, the ability to take out insurance with the insurer of choice, • if it is optional, it shows how not to accede. Where insurance proposal, the offer includes a prior record with the general conditions of insurance (name, address of the
insurer, duration, risks covered and excluded).
Operation of the Revolving Credit: The borrower is free to use all or part of the sum made available (if credit is not used, it causes no cost to the borrower) to make purchases of goods or obtain cash . The revolving credit may be utliser in one or more times as the maximum amount available was not used. The amount available to be reconstituted as and reimbursements in the maximum amount specified in the contract. Interest only covers part of the capital used. The maximum line of credit is granted based on the repayment capacity of the borrower. The lender must send a monthly update on the implementation of the credit agreement, including the following information: • the fraction of available capital • the amount of maturity • the rate of time and TEG • the total amount payable • the amount of repayments made (principal and interest) ...
Repayment Terms:
The borrower has the option to pay cash for all or part of the shortfall, but not limited to the amount of the final installment.
It may also at any time: • reducing its credit reserve • suspension of their right to choose • the termination of his contract
It must then reimburse the conditions specified in the contract, the amount of reserves used. In general, reimbursement is made monthly. Refunds consist of a fractional ownership loan and interest.
Disclaimer: If using these loans repeatedly interests can achieve a significant sum. The borrower may also request the conversion of its revolving credit classic during the annual renewal of the contract. The amount of reimbursement is fixed and then the end date known.
If for 3 consecutive years, the opening credit (or any form of payment partner) was not used, the lender address, 3 months before the expiry of the 3rd year, a document annexed to the conditions of this renewal, which states: • the identity of the parties • the nature of the operation • the amount of available credit • the annual percentage rate (APR)
• refunds of maturity and fractions of credit used.
If the borrower does not return this document signed and dated no later than 20 days before the due date of the contract, revolving credit agreement is terminated.
Failure to pay monthly the lender may require, before termination of the contract: • the immediate repayment of principal still owed, plus his accrued unpaid interest • compensation delay equal to 8% of the capital still owed.