Whether physical agencies or online agencies, credit agencies abound in the market. To finance their projects, many consumers are also called upon to seek the services of a credit organization. Before signing a loan contract, you might as well know everything about this entity! Decoding with Good Credit, a great specialist in online credit between individuals.
The concept of credit agency decrypted
A credit organization is a company whose job is to carry out banking operations. This organization is empowered to draw up a loan contract with any borrower wishing to use its services. This is called a lending institution. The loan amount is based, among other things, on the borrower’s repayment capacity. When a loan contract is concluded, the borrower is required to ensure repayment from the lender. And this, according to the terms of said contract.
Besides credit operations, a credit organization can offer other services such as:
- receipt of repayable funds from the public (i.e. depositing money by the third party with an authorized person);
- the provision of means of payment to customers (bank card, checkbook …);
- management of means of payment.
Good to know: a type of organization, several appellations
Other names are commonly assigned to credit organizations. The following are notably included: credit institution, financing institution, financial institution, credit house, and credit company.
What are the different categories of credit institutions?
Financial institutions are divided into banking families. Thus, a credit organization can be:
- a bank ;
- a credit company;
- a financial company;
- a municipal credit union;
- a specialized financial institution;
- a payment institution.
Note: the bank became multidisciplinary in the 80s
The banking law of January 24, 1984, relating to the activity and control of credit institutions, was a real turning point for banks. This law has indeed ended their specialization. Since then, each bank has been able to market different types of services.
In the loan market, banks and credit companies are major players. They may very well be specialized in a particular type of loan. For example :
- consumer credit (personal loan type, earmarked credit, etc.), which requires no proof of use;
- the repurchase of credit.
A credit company differs from a bank especially by the speed of its services. A borrower needing to take out an emergency loan will, therefore, tend to approach this type of lender to request a credit offer.
Note: excessive borrowing rate and false lender
Despite the urgency of the situation, the borrower must remain vigilant. Some agencies charge particularly high-interest rates. It is also not excluded to come across a false lender. Before concluding a loan contract with an organization, it is better to consult the list of approved credit institutions on the official site of Good Finance.
Credit organization: strict regulations
Each credit institution, whatever it is, is subject to the Monetary and Financial Code (CMF). The latter is mainly governed by the Consumer Code. To find out whether a bank or an insurance company complies with the provisions of the Monetary and Financial Code, the borrower can contact the Prudential Control and Regulation Authority (ACPR).
Consumer credit: can a credit institution impose insurance on me?
For consumer credit (personal loan, earmarked credit, etc.) – as with any other form of credit, – borrower insurance is not compulsory. The credit institution can still demand it, especially concerning the risks linked to disability and death. To this end, it can offer the borrower an insurance offer at the same time as the consumer loan offer. However, the borrower remains free to turn to another insurance company.
Good Credit, a credit organization like no other
In pole position in the field of online credit to individuals in France, but also in Portugal, Spain, Germany, and Italy, Good Credit is a credit organization based on an innovative financial model. The funds are directly granted to the borrower by the investor himself, without a bank intermediary. This explains the speed of our services.
Our offer focuses exclusively on the fixed-rate personal loan, the repayment terms of which are completely transparent: the amount of the credit is fixed in advance, the monthly repayment is constant. Furthermore, Good Credit does not penalize the borrower in the event of early repayment. This operation is free, regardless of the loan amount. With us, no vices or hidden costs!
If you wanted to know everything about this financial institution that is the credit organization, this is now done. Do not hesitate to use our online simulator to find out our rates. Very competitive, they are above all unbeatable up to $ 3,000. Good Credit, the assurance of a clear and unsurprising loan contract!