We regularly see in our comparator that the cost of a cheap construction loan is two to three times less than that of another less attractive. Let’s identify the best work loan suited to each situation.
What is a works credit?
The works credit is a fully-fledged consumer credit. Designed to cover all conceivable works (loan for roofing works, extension credit, etc.), it takes different forms depending on the nature of the arrangements. Let’s look at the different types of work loans and their features.
The work loan with proof
The classic works credit is a credit with proof of completion. This consumer credit is offered by credit organizations, banks and even certain professionals in the sector. Here is what to remember about the classic works credit:
- Loan with proof of completion (provided by the professional)
- Fixed APR rate
- Duration: 12 to 120 months
- Amount: $ 1,000 to $ 75,000 (more in some cases)
Associating the work with an order form allows lending establishments to offer a cheap work loan. In this case, we are also talking about an assigned credit. Credit agencies generally have a monopoly on cheap work loans.
Comparison of justified work loan rates
Let’s use our works credit comparator to measure the cost differences between a cheap and less affordable work loan.
|Works credit $ 8,000 over 36 months||Fixed APR rate||Monthly fees||Total cost of credit|
|Best Credit Organization||2.89%||232.13 $||356.58 $|
|Third best offer||5.77%||242.01 $||712.36 $|
|Works credit $ 15,000 over 60 months|
|Best Credit Organization||2.95%||268.94 $||1136.40 $|
|Third best offer||5.77%||287.37 $||2242.20 $|
We see that the total cost of the cheap work loan of $ 15,000 over 60 months is half the cost of the third best credit organization. You must select “work loan” on our tool to access the best APR rates for work financing offers.
Works credit without proof
The best way to obtain a work credit that can be used freely is to go through a personal loan. Personal credit corresponds to a loan without proof of use of money. In fact, it gives great flexibility in the way of carrying out the work. For example, a personal loan allows you to buy any type of equipment yourself. It is also quite possible to remunerate a professional with the money obtained for carrying out work. The main characteristics of the personal loan for work:
- Loan without proof of use of money
- Fixed APR rate
- Amount: $ 1,000 to $ 75,000
- Duration: 12 to 84 months (sometimes longer)
The cheap work loan in store
Some stores offer a cheap work loan, thanks to their loyalty and payment cards. These are mainly FID stores or kitchen designers. This store credit is generally associated with payment facilities in installments at no cost.
Please note, this small credit – generally less than 3000 $ – in store is in most cases associated with a revolving credit contract. This implies that a re-use of the store card to pay on credit will not always be carried out under advantageous conditions. The revisable and non-fixed APR rate of a revolving credit contract clearly indicates this difference. The rates generally charged within the framework of a traditional use of revolving credit are close to 20%. It is therefore important to check the conditions carefully before applying for a work loan in store.
Works credit integrated into the mortgage
It is possible to obtain a work loan under a mortgage. In this case, it is not a works credit as such, the sum dedicated to said works being included in the property loan. The best way to allocate a sum of money to work in the amount of the mortgage is to approach your bank. It is therefore important to make quotes beforehand, in order to have a precise idea of the sums involved.
How to get a cheap work loan?
There are several questions to ask before trying to get a cheap work loan.
- What is the amount of work to be done?
- What type of credit is most suitable?
- What is my monthly repayment capacity?
A cheap work loan is above all a loan whose monthly payments are easy to repay. There is no point in running on the best rate if the deadlines are unbearable. However, we have seen that a cheap work loan generally corresponds to the work loan with supporting documents, or “allocated”. The fact of carrying out work supervised by a professional and justified by an order form has a reassuring effect for the lender.
Cheap work loan: priority for online organizations
Credit agencies usually offer the best cheap work loan deals. Online credit specialists are used to processing loan applications. They are not only able to offer a quick response, but also have the ability to offer a low rate on high monthly payments.
Our experience in comparing loans for works shows that banks only offer cheap works loans to their very best customers. Above all, the APR rates offered by banks are very rarely up to those displayed by online credit organizations. The best organizations especially have the capacity to grant a cheap work loan for everyone. Among the best specialists connected to our comparator, the GoFinance works credit comes at the head of most simulations.
Good to know: the borrower has a withdrawal period of 14 days as part of a work loan, as with any consumer credit (see the law here).