Consumer credit rate by product type
To help you make your choice, we compiled the average rates observed by type of consumer credit.
Auto credit: the cheapest consumer credit
As a general rule, car loans are consumer credit at the lowest rate, especially for the purchase of new cars. The profusion of promotional rate auto credit offers is linked to 2 elements:
- the competition is very strong: insurers, banks, car manufacturers, credit organizations… no other type of credit enjoys such a strong competition in the universe of consumer credit.
- auto credit is one of the least risky loans, especially when it finances the purchase of a new vehicle, and credit institutions are scrambling to finance such projects.
Currently car loan rates range from 0.40% to 5.92% depending on the chosen repayment period. For example, for a car loan of $ 10,000 over 60 months, the APR is on average 3.74% which represents monthly payments of $ 182.72 without optional insurance, and a total cost of credit of $ 963.20..
Loan works: also very good rates
The loan works is also part of very good consumer credit when it comes to finding low rates. Again, fierce competition brings forth many propotional rates work. It should be noted that banks, insurance companies and credit organizations offer low-rate work credit in order to attract home-based customers, whose needs are generally quite large afterwards.
Currently the loan rates work range from 0.75% to 5.92% depending on the chosen repayment period. For example, for a work loan of $ 15,000 over 84 months, the APR is on average 4.60% which represents monthly payments of $ 208.57 without optional insurance, and a total cost of credit of $ 2519.88.
Personal loan: less evidence but a higher rate
The personal loan has the advantage of being a consumer credit without proof of use of funds but the counterpart is a rate generally higher than other credits conso, including auto loans and credit work.
Currently personal loan rates range from 0.40% to 5.92% depending on the chosen repayment period. For example, for a personal loan of $ 8,000 over 48 months, the APR is on average 3.73% which represents monthly payments of $ 179.45 without optional insurance, and a total cost of credit of $ 613.60.
Revolving credit: credit adapted to unforeseen circumstances
The revolving loan is the most flexible and the most adapted to the unforeseen consumer loan. Everything can vary in a revolving credit to adapt to emergencies that can not wait. Moreover, the great strength of revolving credit is that it is possible to obtain new financing in 48h without a request for credit to study. Another special feature is that it is possible to associate a credit card with a revolving credit and thus finance purchases on credit. In return for this flexibility, the revolving credit interest rate is very high, making it the most expensive consumer credit in the category.
The rates of the revolving credit are generally between 10% and 20% : around 10% for quick repayments in 10 to 12 months maximum, around 20% and generally at the ceiling allowed by the attrition rate for long repayments ( 36 months maximum for amounts less than 3000 $ and up to 60 months for amounts over 3000 $).
Assigned credit: a credit generally well placed
The assigned car credit is distributed directly through the car dealership networks. Promotional offers are numerous and it enjoys the same overall rate levels as self-financing directly distributed by banks and credit organizations. The best offers, however, are more frequent when you subscribe directly to a bank or credit institution.
Repurchase of credit: the cost of rescheduling
Credit redemption is an atypical financing format whose purpose is not to finance a project but to reschedule loans in the course of repayment whose monthly payments are too high. The goal is to reduce the amount of monthly payments by extending the repayment period. In these circumstances, and given the higher risk of this type of transaction, the rates charged on the redemption of credits are higher, generally around 6%.
What is the consumer credit at the lowest rate?
Our mission is to make credit more transparent and simpler.
CheckmonCredit.com allows you to compare up to 27 offers from banks, insurance companies and credit organizations.