It is important that we all remember the first time we opened our first bank account. It is often the same bank as that of the parents, and probably to save their first savings. Far from the idea of using consumer credit.
In reality, banks recruit their clients either through mortgage loans or through the opening of a bank account and its means of payment. The bank’s objective is therefore to find ways to keep its customers as long as possible, in order to get to know them and offer them ever more suitable services.
Banks take time before knowing a customer, they do not always have the means to decide on the risk of bad repayment of a personal loan, or any other consumer credit. A bank needs to fully master the risk factor before granting consumer credit. It is therefore not only almost always necessary to be a client, but in addition to justify a certain seniority and / or financial stability.
Senior Credit verified the consumer credit rates practiced by the biggest banks, such as through comparisons of their different credit offers (personal loan, car loan, work loan, etc.). We were faced with two issues:
In summary, banks are able to make consumer credit rates on two conditions:
Conclusion : it is difficult to obtain a cheaper bank consumer credit rate by applying online without already being a customer of the bank.
The advice of Senior Credit : in all cases, play the competition:
Unlike banks, credit organizations have only one thing to sell: consumer credit. These specialists in consumer credit (Yoabank, Bankate, Bankil, etc.) have therefore developed a very important ability to assess your risk without knowing you. Whereas the approach of the banks is rather to know you first and to sell you little by little the whole range of their products.
Thus, although they sometimes seem tedious, the questionnaires to be completed for credit applications are essential for a good risk assessment by credit organizations, which banks and their consumer credit cannot do. The better the credit risk assessment, the less bad the organisms will be and the more they can lower the consumer credit rates.
In conclusion, credit organizations, having a better risk assessment, will offer better consumer credit rates.
Last point that radically separates consumer credit from banks and financial organizations in the approach to personal credit : the management of non-payments.
Customers with a default within an organization will first be contacted by email, then by mail and telephone. If it is impossible to settle the sums due the pressure will start to mount more and more. The customer thus becomes a debtor and the only objective will be that he manages to repay his debt as quickly as possible.
In general, amicable proposals are made through the grouping of credits which makes it possible to spread out all of its consolidated debts. In summary, the only link between the credit organization and its client is quite simply its debt.
Managing consumer credit defaults by banks is going to be a little different. Of course, if the monthly payments are not reimbursed, follow-up letters will be sent. But the big difference is that a banker will be able to block your checking account and your means of payment, which can in some cases make daily life much more complicated.
The other huge difference is that your banker is at his agency, normally not very far from his client’s home. So the first reflex that you have to have in case of default is to go directly to the agency. Which is simply impossible with a credit organization. The banker will know how to listen because he has every interest in ensuring that there are no more arrears.