Credit calculator – How does it work

Realizing an ambitious project very often requires resorting to bank credit. In the past, making an appointment with a financial advisor was an essential step in carrying out a credit simulation. Comparing the offers of different banks needed to be patient: touring the branches could be very tedious! This period is now over. The advent of online credit calculators has profoundly changed the habits of potential borrowers…

When to use a credit calculator?

When to use a credit calculator?

Bank credit is deeply rooted in our habits. It is seen as an advantageous solution, when you want to give life to your projects without losing your capital. But if it has undeniable advantages, credit still requires you to be careful. Will you still be able to meet the amount of the monthly installments? The answer to this question can be obtained using a loan calculator. If your project has reached maturity, this clever online tool can allow you to assess the contours of your future credit. Before even contacting a financial advisor, the credit calculator gives you valuable information to assess the relevance of your project, based on your borrowing capacity. And this, without even leaving your home …

Calculating the loan becomes child’s play!

Calculating the loan becomes child

The possibilities offered by credit calculators are manifold, and relate to the following four elements: interest rate, monthly maturity, duration of credit and maximum borrowable amount. Just enter three parameters from this list, to instantly get the fourth! Two concrete examples illustrate the interest of this type of online simulation.

Example n ° 1 : Mr D., a 50-year-old teacher, owns an aging car which gives serious signs of shortness of breath. He plans to acquire a new vehicle, but first wishes to ensure that such a project is compatible with his current financial situation. Faithful to his bank, Mr. D. does not wish to change it. His financial advisor also told him by phone the rates charged. By using an online auto credit calculator, Mr. D. fills in the following fields: car price, loan duration and total effective rate. In one click, he gets the amount of the monthly payment that he will have to repay. This being reasonable, our friendly fifty-year-old already imagines driving his new car!

Example n ° 2 : Newlyweds, Laure and Sébastien plan to acquire their first apartment. They are fully aware that this investment will commit them over the long term. Their objective is to find the best compromise between the amount of the monthly installments (which must remain reasonable) and the duration of the loan (which he would like to shorten as much as possible). Using a home loan calculator will help them dispel their doubts. By entering the interest rate charged, the sale price of the apartment and the amount they are able to repay monthly, the calculator tells them the total duration of the loan. Several simulations are even possible! All they have to do is modify one of the parameters to obtain a different borrowing duration. Flexibility and comfort of use are the major advantages of an online credit calculator. Here is an ingenious tool which will guide you in the accomplishment of your projects…

Loan calculator and credit simulator: the winning couple!

Loan calculator and credit simulator: the winning couple!

After having brushed up the outline of your credit using a loan calculator, it can be interesting to compare the offers of different financial organizations. For this, a credit simulator is the ideal tool! It searches for you the offers available on the internet, and thus allows you to compare the credit solutions offered by different banking establishments. It is up to you to make your decision with full knowledge of the facts…