The work loan is a loan that allows you to finance a renovation project or any other type of development linked to a property.
You should know that the credits called “work credits” you find on the net are trade names. Therefore, the work load is quite simply a consumer loan, the amount and repayment period adapted to a project of renovation or development of a property.
It is, most of the time, a personal loan without proof of use.
Affected credit
Affected credit is a loan taken out for a specific purchase. You start repaying your loan only after receiving your good or service. If you do not get the credit, the purchase is cancelled (if the credit request is stipulated when ordering) and vice versa.
This can limit your room for maneuver in your work since you will need to obtain approval from your organization each time before incurring the costs.
Revolving credit
It is a revolving reserve of money that you can use for your work.
This reserve is fed as you repay. An associated credit card usually accompanies this credit.
The revolving credit is often more expensive than others because its rate is higher. However, if you plan to do the work yourself, a credit card offered by a DIY chain can indeed be attractive if it additionally offers bonuses as you shop or discounts.
How much can you borrow with a work loan?
It all depends on the credit you choose. If you opt for the personal loan (consumer credit), you can borrow between 200 and 75,000 $ over a repayment period of at least 3 months.
If you need to do big jobs that require more than 75,000 $, you can use a home loan that will allow you to borrow larger sums of money over a longer repayment period.
Before you start looking for the most advantageous credit, you must also know what work you need to do and how much you need.
Therefore, first of all, start by listing your needs and setting up your renovation project.
You will need materials, but also probably professional services if you are not much of a handyman.
When you have calculated the total amount you will need for your renovation project, you can start looking for offers using our credit comparators.
This will allow you to compare offers more efficiently.
The benefits of credit for works depend on the credit chosen.
That if you opt for a personal loan, it will probably be easier to obtain than a mortgage, but it will be offered at a higher rate, which will cost you more in the end.
As for the credit allocated for works, you will understand:
Although you may negotiate a better rate, it will be less easy to obtain since the bank will ask you for quotes when a renovation project is complex and often accompanied by unforeseen circumstances.
If what you have announced is not carried out, the affected credit is automatically canceled, which is not really reassuring for such a project.
When it comes to revolving credit, it is only worth doing this if a large DIY store offers you a credit card with great perks like bonuses or discounts that can help your home improvement project.
In this case, you will pay a little more, but you will recover the difference between the bonuses and reductions while having great ease in managing your credit.
The downside is that you cannot exceed the maximum amount provided for in the revolving credit agreement you signed.
