Consumer credit covers very different realities: personal loan, earmarked credit, revolving credit, lease with option to purchase. Choosing a credit suitable for one’s needs requires comparing these options based on specific criteria, notably the APR, repayment flexibility, and the level of legal protection. The situation will also change with the European reform applicable to new contracts from November 20, 2026, which expands the scope of regulated products.
APR, duration, and ceiling: comparing consumer credit options
The choice of financing is primarily based on three measurable parameters: the annual percentage rate, the repayment duration, and the amount that can be borrowed. Their combination determines the actual cost of credit.
| Type of credit | Amount | Minimum duration | Rate | Usage |
|---|---|---|---|---|
| Personal loan | 200 to 75,000 euros | More than 3 months | Freely set, capped at the usury rate | Free, no justification required |
| Earmarked credit | 200 to 75,000 euros | More than 3 months | Freely set, capped at the usury rate | Linked to a specific purchase (car, work) |
| Revolving credit | 200 to 75,000 euros | Variable (reusable reserve) | Generally higher | Free, drawn as needed |
| Lease with option to purchase (LOA) | Variable depending on the asset | Contractually set | Included in the rent | Vehicle or equipment |
The personal loan offers the greatest flexibility of use. Earmarked credit, on the other hand, provides more protection for the borrower: if the sale is canceled, the credit contract is also canceled. Revolving credit, often associated with store cards, has a significantly higher rate than the other two options.
To quickly assess the cost of an offer, simply access Finance Technique for credit and start an online simulation with the desired amount and duration.
Consumer credit reform on November 20, 2026: what changes for borrowers
The transposition of the European directive on consumer credit modifies the scope of regulated products. New contracts signed from November 20, 2026, will be subject to broader rules. However, contracts in progress on that date will remain governed by previous provisions.
Products now covered by regulation
Several categories of financing that were previously partially or totally excluded are now included in the scope of consumer credit:
- Mini-loans of less than 200 euros, widely used in mobile payment applications, will be subject to the same pre-contractual information obligations as traditional loans.
- Short-term loans of less than three months with negligible fees, including the installment payment offered online, will lose their exemption.
- Loans with no fees or interest, often used in e-commerce, will be included in the system.
- Contracts for lease with option to purchase (LOA), which have become predominant in the new car market, will be fully assimilated to consumer credit.
- The ceiling rises to 100,000 euros for covered loans, up from 75,000 euros previously.
This extension changes the game for borrowers who used installment payments without perceiving them as credit. The obligations for creditworthiness verification will also apply to these products.
Concrete impact on credit choice
A borrower who signs an automobile LOA contract before November 20, 2026, will not benefit from the new protections. Those who wait until the transition date will obtain a right of withdrawal and pre-contractual information aligned with the personal loan regime. The subscription date thus becomes a decisive criterion.
Usury rate and simulation: two tools to filter loan offers
The usury rate, published quarterly by the Banque de France, sets the legal ceiling beyond which a lender cannot go. Any offer with an APR exceeding this threshold is legally void. Checking this ceiling before signing helps eliminate abusive proposals, particularly regarding revolving credit.
Online simulation remains the fastest way to compare. It allows for varying three parameters: amount, duration, and monthly payment. Borrowing the same amount over a shorter duration increases the monthly payment but significantly reduces the total cost of credit.
Balancing between low monthly payment and total cost
Extending the repayment duration to reduce the monthly payment is tempting, but each additional month generates interest. On a personal loan, reducing the duration by one year can lower the total cost by several hundred euros. The quantified simulation, project by project, remains the only reliable way to decide.
Borrower insurance and processing fees: often underestimated costs
Borrower insurance is not mandatory for consumer credit, but the bank may offer it. It covers death, disability, or job loss. Its cost adds to the APR and can represent a significant portion of the total amount repaid.
Processing fees, on the other hand, vary from one institution to another. Some online lenders waive them to attract new clients, while traditional banks systematically charge them. Comparing the APR alone is not enough if ancillary fees differ.
For credit suited to one’s budget, one must add the cost of interest, optional insurance, and processing fees, then relate this total to the amount borrowed. This ratio provides a more accurate view than just the displayed rate.
The November 2026 reform strengthens the obligation to inform about these costs for new contracts, which should facilitate comparison between offers. Until then, the APR remains the only legal indicator that includes all costs, provided it is verified that it indeed includes insurance when required by the lender.
