When buying a good or service, two payment options are possible: cash or credit. In this article we will go over the different ways to pay on credit.
Free credit :
It is an ease of payment that many retailers, furniture stores, hi-fi and others commonly offer you.
- This allows you to amortize your purchase over several months (usually between 2 and 6 months).
- It is a free service, (in principle no administrative fees or interest).
- You will notice that you will be asked to fill out several forms and that you will be asked for supporting documents ( RIB, proof of address, crossed check, photocopy of identity document, etc.). This seems normal (you don’t let a customer leave with an item without paying and without verifying their identity).
- Only this often hides the subscription to contracts of which the seller does not give you the name clearly.
- You can therefore subscribe (without knowing it or not really paying attention to it) to a loyalty card. This is often also a payment card which will later allow you to pay for deferred debit or credit items.
- Even a card allowing you to take out revolving credits (also called “revolving credits”). If you have another funding option. We advise you to avoid this type of credit.
- Before signing the documents ask the seller if the payment in X times free of charge that he offers you is accompanied by a loyalty card. And if necessary if it is coupled with revolving credit. if so ask him the cost of this card at subscription and also the annual cost of this one.
- Also be aware that some sellers do not really know in detail the credit they offer, (they are trained on the job).
- Some others (fortunately they are rare), are unscrupulous and are ready to tell you anything for fear of “missing a sale”.
- This is why it is essential to read before signing. (which we don’t usually do when faced with a sympathetic seller and in the euphoria of buying).
Classic credit :
Again two possibilities:
1st possibility : It is offered on site by the seller. In this case it is from a credit company that you will borrow (indeed, whether it is for the purchase of a vehicle, a television set or a sofa), the credits offered on site in the store are those companies specializing in consumer credit.
- Unlocking is often quite quick, especially since the store is a partner of the brand and they are used to working together.
- It’s practical, you do everything on site. (purchase and credit).
- You don’t make competition for credit work.
PLEASE NOTE : Before signing, make sure that this is a classic “consumer” credit, and not a revolving, revolving or revolving credit. These three terms mean the same thing: A loan with a very very high rate (sometimes bordering on 20%!). If so, apply for consumer credit. or even better, see your banker and come back later.
2nd possibility : You postpone your purchase and contact your banker so that he can grant you consumer credit. Once the credit is released, you proceed to payment for the item in store.
TIP : To avoid being trapped during the purchase, be careful:
- First shop to compare prices.
- Then when you have a clear idea of the expected cost of the purchase, go to online credit sites (those whose names we mentioned above). Some people may make promotions valid for a few weeks. Then do online loan simulations.
- Then contact your banker, by email or by phone, he can quickly give you an answer.
- Compare the different proposals.
- So, when you are facing the seller, you will have all the elements in hand to judge if his proposal is interesting.
And remember that you NEVER do good business in a rush!