Credit sometimes gets a bad rap. Between myths and realities, let's take the time to analyze things objectively.
Credit: Opportunity or Trap?
The Intention
Credit is a simple, transparent and easy financing solution. In this sense, it is an opportunity to carry out your projects.
Like any form of financing, interest is charged so that the lender (often a bank) covers its costs and the risk inherent in the loan.
As far as credit is concerned, knowing that no down payment is necessary, that no collateral is required, that the application process is relatively simple and fast, the interest is higher than that applied for a lease or a mortgage loan.
However, this is also equivalent to comparing apples and pears as the services provided are so different and, contrary to popular belief, the risk can be much higher when you sign a lease contract or a mortgage. We'll come back to that later...
The intention, yours and that of your financial partner, is therefore paramount. The purpose of a loan is to unleash your financial potential so that you can make an investment or purchase decision that is proportional to your budgetary capacity.
Credit must avoid over-indebtedness.
This is prohibited by law.
The intention of the borrower and that of the partner must therefore be anchored in a healthy, responsible dynamic aimed at improving the client's personal situation.
If you want to carry out a project, taking into account your budgetary reality, without administrative burdens, under transparent terms and monthly payments and without surprises, opt for a loan.
When choosing your partner, compare, find out and choose the organization that will convince you of the responsible and qualitative nature of its services.
The credit trap is a myth as the legal framework is so strict; The opportunity is real when you choose the right partner.
The partner
Transparency, ethics, experience and an extensive network of recognized banking partners. Milenia offers you all this via its financing platform.
Tailor-made redesign, online tools to make the process easier for you, individualised advice... Here are some of the services available to you.
No hidden fees, no commitments, no cost for studying and building your credit report. Among serious providers, these elements are a myth.
We were talking about intent. Ours is to guarantee you total freedom without imposing any fees and to support you in your project at the best conditions on the market. It's a reality.
Information
Being well informed will help you avoid unpleasant surprises. Visit Milenia's blog and find out more about ZEK, credit, insurance, credit cards, debt collection offices, partner banks, etc.
Everything is accessible and verifiable. That's a fact.
The Law
When you take out a loan, we will prepare your file beforehand. The criteria for reaching an agreement are strict. Good. This allows everyone to make the best decisions and avoid any outsized risks.
The law prohibits any financing institution from creating a situation of over-indebtedness by circumventing the verification measures necessary to establish a complete file, true in its nature and content and respectful of the conditions imposed by the lending banks.
Debt, income, family situation, history as a payer, place of residence... Everything is designed to provide you with a solution that fits your personal situation and budget. That's a fact.
There is risk and risk.
Sometimes it's curious to hear that a mortgage is safe. The duration of your commitment covers decades, the rates applied are never guaranteed over the entire duration and can rise upwards, the price of real estate is not immune to a fall despite what some experts say, the equity required to lay you bare can be prohibitive and significant costs can result from a change in strategy. For once, the risk is very real.
Interest. Lifelong?
And what about the interests in all this? Considering that a mortgage covers a lifetime, if not more, it is clear that the interest paid is, so to speak, almost endless. The interest rate may be low, but the amounts involved are high because they are proportional to the time borrowed and run for many years.
A personal loan or a home loan cannot be the solution for every type of purchase, but it can be much more attractive depending on your context. If your cash flow allows it and the purchase price of your property or the renovation costs are not exorbitant, a loan may be enough to complete your file.
Yes, the interest with a loan is higher in percentage terms, but it is fixed and limited in time.
By calculating the actual amounts disbursed over a shorter period of time, you will see a definite gain for your portfolio. Your budget situation is of course a decisive factor and the costs involved are decisive, but considering a solution such as the loan is worthwhile.
Are we talking about leasing?
You don't own your vehicle. You incur significant costs if you do not respect the predefined framework, you are limited in your choices of garage, insurance and maintenance.
And no, you won't be able to simply get out of it or turn it into another form of financing without paying considerable penalties.
Yet, we have all taken out a bank loan, a mortgage or a lease. Credit is no riskier. That's a fact.
Freedom has its perks.
Let's also talk about the benefits of credit:
It's fast, it's simple.
No down payment or down payment required.
You can redeem your credit at any time. For minimal or no fees.
No hidden fees, no cost for your file.
Full freedom to use the allocated funds.
And yes, this is all factual too.
You!
In the end, you will be able to tell the difference between reality and bad tongues.
Caution, yes. Responsibility, yes. Choosing the right partner, absolutely.
However, nothing makes credit riskier than other forms of financing.
You are in control when it comes to deciding how to use the loaned funds, you are free to redeem your loan if better conditions are available, your rate is known in advance and limited in time, interest is deductible from your taxable income and you avoid a series of complex administrative procedures.
The risk factor? A strict legal framework is in place. Trusted players such as Milenia offer high-quality services. A study of your file is carried out by both your financing partner and the lending bank. With common sense, good advice and the regulatory framework, there is no evidence that private credit is riskier than other types of borrowing or financing. It's clear, it's clear.
Still not convinced? Never mind! Surf our financing platform and run a simulation. One of our experts will be happy to review your file with you. No commitment, no fees, promised.
Then quietly decide what works best for you.
We'll be by your side no matter what.
