Finding the best work loan at the most attractive APR rate is an important financial issue. Each loan has its specificities and it is not easy to navigate. Renovation of his home, addition of surface or simple decoration: to each need his solution. Let’s sift through the types of work credit and compare them to define which is the best work credit according to their needs.
What is a work loan?
The work loan is a consumer credit adapted to the realization of all types of developments or extensions in his home. Offered by all specialist organizations, online work credit can take the form of a personal loan or an assigned work credit. The credit of less than $ 4,000 also makes the eyes of apprentice DIYers. Whether the investment is significant or not, accurately assessing the cost of the work before finding the best rate for a work loan is the priority.
Where to find good work credit?
There is no better work loan but several solutions adapted to everyone’s needs. The first step is not to look for the best work loan but to precisely identify the cost of operations. Making several quotes and competing allows you to get an idea of the total estimated cost. Do I need to do my work all at once? Is it better to go through a craftsman or make them myself? Will my work credit be accepted? You have to ask yourself the right questions before coming to compare the rates of the works credit. Because once the works loan is taken out, if you need an additional budget during the construction phase, it will be very complicated to obtain an agreement for a second works credit.
Let us try to identify which is the best work loan according to the needs and amounts of each project.
Best work loan of $ 4,000 or more
Work in excess of $ 4,000 will always take the form of a personal loan or assigned work credit. The first is a credit without proof of work, while the second requires him to justify work. Okay, but which one has the best rates?
The assigned works loan, an economical solution
The assigned works loan is used for works for which we can provide proof of purchase or quotes from craftsmen. The targeted project must be specified, the organizations systematically requesting at least a quote or an order form. This type of credit is more reassuring for the lender, as long as the project is clearly identified. The rates of assigned credit are most of the time more attractive than those of personal loan. This comparison between an assigned and an unallocated Bankate loan shows this:
|For the same amount $ 10,000 over 60 months||APR rate||Type of credit||Total cost of credit|
|Bankate works credit||2.99%||Assigned works credit||767.60 $|
|Bankate personal loan||4.38%||Works credit not allocated||1130.30 $|
The best work loan allocated to Bankate ($ 10,000 over 60 months) costs $ 363 less than its “classic” personal loan. In the case of a credit for works affected, a mention of the use of a loan from an organization or a bank is specified on the order form of the craftsman. The money can be paid into the borrower’s account (who then takes care of the transfer) or directly into that of the craftsman, depending on the conditions of the chosen financial institution.
The assigned work loan is obvious for any individual who has clearly identified the cost of his work. It is also important to choose your craftsman carefully. Additional guarantee: the credit will be canceled if the work is not finally carried out. The borrower also has the possibility of repaying – partially or fully – this loan affected in advance. Comparing the rates, possible costs and repayment conditions (deferral of monthly payments, break in the course of credit, early repayment, etc.) is essential in order to find the best work loan.
A personal loan for his works, when and why?
Without proof of use of the funds, the personal loan is totally different from the credit assigned. Very popular, the best known personal loan is not intended for particular financing. A personal loan is however synonymous with the best work loan for any individual wishing to fully manage their budget. If this financing solution offers a certain flexibility of use, it presents a rate slightly higher than that of an assigned loan.
Once the credit withdrawal period has passed and the money has been obtained, the work will be entirely in the hands of the borrower. This solution is generally preferred for work whose cost is sure to be controlled. Individuals wishing to carry out work on their own will generally request a personal loan.
Finding the best work loan from a bank: mission impossible?
The vast majority of our comparative analyzes of APR rates for credit show that banks are not up to par with credit organizations. Best work credit Crédit Agricole, LCL, Caisse d’Épargne: the penalty is always the same. In reality, only privileged customers can claim to have found the best work loan in their bank. The only chance to get the best work credit from your bank will be to negotiate with them. This is to present a first intended to show that we can get a good proposal without it.
For a small construction loan, the renewable solution
Sometimes a small loan is enough to carry out your work. Decorations and basic arrangements will generally be well included in a revolving credit. It is also a possible solution to extend a series of small jobs over time. Revolving credit is offered at higher APR rates than that of a personal loan. Flexible, it has the significant advantage of renewing itself over the course of reimbursements. This is called the reserve of available money. It is also possible to repay a revolving credit in advance, in order to reduce its total cost. A revolving credit of $ 4,000 can be amortized over more than four years, up to 60 months. The monthly payments are in this case “only” of the order of $ 75.
How To Get The Best Works Loan
We have seen that several steps are important before claiming the best credit for carrying out your work:
- Ensure that the work is legally feasible. A prior declaration of work recommended, especially when the work concerns an extension or an extension.
- Make the most precise quotes possible.
- Evaluate the total cost of the work, reserving a small margin to avoid unexpected credit.
- Target the best possible work loan (assigned credit, personal loan, small credit) for your project.
- Compare the work credits and obtain a favorable response in principle thanks to our system connected to the largest organizations.
- Once the application has been pre-accepted, the next step is to collect the credit documents and finalize the request.
- Sign and return your credit report.
The prerequisites for obtaining the best work loan assembled, it’s time to get started.