Renovation work or interior decoration, the realization of work is one of the most common causes of credit underwriting. Read more
The completion of work is one of the most common causes of credit underwriting. The credit works is not only for homeowners, many tenants also subscribe to this credit. Also, this credit concerns all types of work, renovation work, interior decoration, and even upgrading …
The credit works can take several forms depending on the amount needed to perform the work. When the envelope is less than 75000 €, you can apply for a consumer credit. However, if it is superior, the financial institution will direct you to a mortgage.
Consumer credit to finance your work
When you finance your work with a consumer credit; the loan terms that you will be able to obtain will of course depend on the credit you have chosen, and on your loan file. After choosing the type of consumer credit, do not hesitate to play the competition between different financial institutions.
The credit allocated to works
The cheapest option for financing your work is the assigned credit. However, credit will be granted based on your quotes. Also, be especially careful about your provider, and make sure the quotes in your possession are really detailed. Indeed, with a credit allocated, the funding will be directly paid to your provider.
The personal loan
The credit that will allow you to have the greatest flexibility, without exploding the ceiling of interest, is the personal loan. With this credit, you will not have to justify yourself on the allocation of funds, the type of work … Also, you will not have to submit the estimate of your work.
However, even if the costs remain measured, this credit is still more expensive than the credit allocated. Take advantage of this option when the work you are considering is relatively inexpensive.
The revolving credit
In general, we do not advise you to use revolving credit, on the one hand, it is excessively expensive, on the other hand, its interest rate fluctuates.
By using real estate credit to finance your work, you will benefit from advantageous credit conditions. In particular, a low interest rate.
However, it has the same administrative burdens as traditional real estate loans. Namely, a long enough period for the release of funds, the payment of fees, the subscription of insurance, the need for a guarantee …
Remember that to finance your work, you can benefit from the eco-ZRL (Zero Rate Loan). As part of this scheme, the French State has signed a partnership with numerous banks.
Only certain works are concerned. Since 2015, it is the contractor who must confirm the eligibility of the work you wish to undertake to the device.
Finally, before subscribing to a real estate loan, or a consumer credit to carry out your work, inquire with the National Housing Agency. Indeed, it would be a shame to miss the many schemes put in place by the French state.