For small cash requirements banks often grant an overdraft authorization, the amount of which depends on the financial position of the account holder. According to the statistics one third of the French are exposed at least once a month.
Overdraft authorization is a simple and quick solution if you need a daily cash flow.
This authorization may be limited in time or granted for an indefinite period. However, the discovery situation may be authorized for a period of up to 3 months according to the Lagarde law.
At the end of this period the sums due must be repaid. Otherwise, the debtor can subscribe to a consumer credit. It should be known that in exchange for this possibility to pass the balance of the account to the negative the banks collect agios. These include interest, fees and commissions related to the transaction. They can be fixed or proportional lump sum, calculated according to the duration and the amount.
For information, the interest rate of an overdraft can vary from 8 to 16% depending on the bank. If the authorized amount is exceeded, the rate goes up. However, the bank can refuse the overrun and charge penalties. In this respect one must be cautious since the significant bank overdraft is considered as a payment incident which can lead to registration. Authorized overdraft can be very expensive in the long run.
The revolving or revolving credit is a reserve of money available at any time without having to justify expenses. Namely, the money can be unlocked very quickly, from 24 to 48 hours after the subscription of the contract. Moreover, it is quite easy to obtain a revolving credit. As its name indicates, this type of credit is reconstituted as and when repayment while interest apply only on the amount actually used. So, it is possible to repay the revolving credit in whole or in part.
It should be known that this loan is almost not depreciable and the APR can be revised in time. Often associated with a credit card, this type of loan is usually offered at a fairly high revisable interest rate which must however be lower than the rate of wear. Note, you can subscribe a revolving credit not only from a bank or a credit organization. It is often offered by supermarkets and others to facilitate the use of this reserve of money to pay for its purchases. This is usually an enhanced loyalty card from a store. So, it is a financing that offers borrowers a great deal of flexibility but is at the same time considered dangerous. In fact, he is involved in many cases of over-indebtedness. In theory, the maximum amount of revolving credit amounts to 75,000 euros. In fact, most often it is used to finance projects of less than 5000 euros.
Affected or unallocated personal loans are another way to finance your current needs. When subscribing to an assigned credit you must submit purchase-use vouchers. This credit allows you to benefit from attractive guarantees in the case of a well-defined project (the purchase of household appliances, furniture, etc.). In fact, if the purchase is not finalized or is not delivered the loan is automatically canceled. Yet it is quite possible to take out an unallocated loan but with a higher rate. However, it is a less expensive formula than an authorized discovery or a revolving credit to control its current expenses.
The amount of the personal credits is between 1000 and 75 000 euros repayable over a period of 12 to 120 months. For information, the average rate applicable to small loans (up to 4999 euros) on short terms (from 12 to 36 months) hovers around 8%. However, some borrower profiles can negotiate the best rates that range from 1 to 3%. So, it should be mentioned that the personal loan proves to be a less risky solution since it is a depreciable credit whose rate is set upon subscription of the contract.
Currently, many lenders offer mini credits, especially for the financing of small projects. These are short-term credits with which you can get the money quickly in 24 hours. This type of credit is available even to profiles that fail to obtain conventional financing (young people, students, employees in fixed-term contracts, etc.). It is a real alternative to bank overdrafts and revolving credits when its interest rate is generally more attractive. As a rule, this range of credit allows you to borrow up to 3000 euros. For example, we can borrow 3000 euros over 48 months at a rate of 8.49%.