Often talk about zero-interest credit means but this type of financing includes several different categories of loans. The 0% credit rate can therefore also be:
- Interest loan (PTZ) of homeownership: paid-tested for easy access to the property.
- Eco Ready to zero (Eco-PTZ) loan works for the energetic renovation conditionally.
- Credit Auto zero: financing a car offered by dealers who will bear interest.
- Credit to zero in store: occasionally available in specialized retailers of crafts, from household appliances, furniture, kitchen in the form of credit 0%.
- Payment in 3 or 4 times for free: in-store or online, it is regularly offered to pay in 3 or 4 times for free.
We will go through each of these zero-rate credit solutions, to understand if this lowest possible rate does not sometimes hide some drawbacks.
Interest loan: the rate 0% credit for home ownership
It is the best known form of zero rate credit. This system has been put in place for several years by the State to support households with limited incomes in home ownership. The principle is to finance part of the purchase of the property with a loan at zero interest.
However, while the amount of the acquisition may not be covered by a zero-interest credit. There are many variables that fall within the calculation of the amount that can be obtained. The region, household composition, income level are the main. To find all the details of how the zero-rate loan works, it is best to refer to the information site set up by the State about the PTZ.
Main points to remember about the zero rate loan
- Share of financing taken over: 20% – 40%
- Not having owned his residence during the last two years
- Ready in 20, 22 or 25 years with a grace period of 5 to 15 years
- Agreement subject to variable income ceiling next household composition and location. For a household of 4 people, the ceiling varies from $ 48,000 to $ 74,000 (income tax reference).
- The 0% rate credit application is made to any bank who will investigate the case.
Conclusion: In all cases it will find the most funding in another way. If it is through a mortgage “classic”, we can only recommend to go through our comparator. It offers mortgage simulation online and provides proposals tailored no obligation.
As we saw in the introduction, the Eco-interest loan provides loan rate no work, provided to make changes related to the improvement of the energy transition. It is also necessary to choose a guarantor r econnu environmental entrepreneur (label EGR) to hope to get.
Again, there are a lot of specific formalities to get this credit at zero interest.
In summary, for an Eco-interest loan, you must:
- Perform eligible works (generally insulation and heating)
- Choose an eligible business (EGR)
- Maximum amount: $ 10,000 to $ 30,000 depending on the work
- Duration of repayment of 0% rate credit: maximum 15 years
- To apply you must go to his bank and provide many supporting
This approach is advocated by the French, despite the credit rate for consumption low. The best alternative to a demand for eco-PTZ is denied an online credit work.
Credit to zero: Auto Loan
This type of zero-rate car loan is used by certain dealers and certain manufacturers to bring in as many people as possible in dealerships, without always making the maximum discount. Indeed, we had investigated in a fairly detailed manner the zero rate car credit (see our article 0% car credit) and we had come to the following conclusion:
- The zero-rate credit is generally not offered on all times and all amounts.
And generally limited to short durations. Now it’s a new car loan and therefore often in a vote 10 000. In this case, credit monthly payments are very high. The sellers then offer longer terms but credit is no longer zero.
- A zero interest credit is equivalent to a discount of approximately 5%
And yes, we have to do the math because the seller will probably less of a strain on the decline in the price of the car itself. He will explain that by offering a credit car at 0%, it may not play on all tables. However by comparing the cost of a cheap car loan compared to the price of the car, one comes across a discount value of around 5%. So do let up on negotiating the price of the car from the start.
it may be interesting to enjoy a 0% credit rate to finance a new vehicle. Not all dealers offer it. Those who do not generally use only two times a year for a week. This is probably the Volkswagen credit that offers the most. In this case, to enforce the law, it is the dealer who shall bear the cost of credit. So it must not be overlooked trading on the price of the car.
Credit 0% store
It regularly finds rate credit card offers 0% store to help sell products at high prices. The best known forms are the 10 free installments or 20 times for free.
Again, not talking about free credit as the cost of credit is supported by stores (see how fixed rate credit). Moreover, these zero-interest credit offers are often offered through the store charge card. It is important to know that since the Cogilaw Company, sellers are supposed to offer to be able to subscribe to these zero-rate credit offers outside the store’s credit card.
These offers do not really competitive and are pretty unbeatable. We can only recommend to those and they do not want to store the card request that it be zero rate credit is affected through a personal loan.
Payment facilities in 3 or 4x without charge
This is particularly the payment in 3 times for free which is highlighted on the internet or by small traders. This payment is not a zero-interest credit because it’s not considered a consumer credit. While the funding period is less than 90 days while consumer credit legislation does not apply.
This is also why the formalism is quite small and the transaction is in the majority of cases to make 3 samples on the bank card. The only points where you have to watch with 3 times and 4 times for free are:
- The first withdrawal generally corresponds to a deposit. It is therefore collected on the day of purchase.
- Cards with systematic authorization are not generally accepted.
- In the event of a return for a purchase on the internet, it may be complicated to stop the direct debits and to be reimbursed.
But objectively, this system is usually quite interesting for merchants and customers. There is no reason to deny it when it is offered.
Zero rate credit: what does the law say?
The law does everything to limit zero-rate credit. In any case if it is offered by financial companies. As for the free loan and eco-interest loan, this is special mechanism set up by the state.
The law considers that if financial companies offer zero interest credit. This is a form of selling at a loss and is prohibited. So why is there anyway? Simply because an intermediary such as a dealer or a store can support the cost of credit. For 3 or 4 times for free, this formula is not considered credit if it is less than 90 days.
It is therefore possible to find different forms of zero rate credit but normally not under the designation of “free credit”. Why ? Because the law prohibits the use of this term for credit, since someone bears the cost of credit. The latter is therefore not free. Besides the rate 0% credit must also specify if an APR rate notes or fixed rate credit 0% APR.