—”Hello, am I speaking with the Crédit Populaire bank?”—”Certainly sir, you have indeed dialed the number of Crédit Populaire Européen, how can we assist you?”. Discover what a credit broker is.
To start, everything is fine! Except that the Crédit Populaire Européen is not a bank but a credit and insurance intermediary. Furthermore, a credit intermediary is also called a credit broker.
Banks, credit institutions, credit companies, credit intermediaries, brokers: the public then seems to confuse these notions which actually cover different services.
Let’s clarify together to help you understand what lies behind the “CPE” door you just pushed! Today, we’re doing it “It’s not rocket science!”
Credit institutions / credit companies
Consumer credit can be offered by banking lenders – namely banks and credit institutions – and non-banking lenders – namely credit companies.
All these lenders must have an authorization from the Federal Public Service Economy for granting consumer credit.
Consumer credits can be distributed by bank agencies as well as by credit intermediaries, that is to say, brokers and credit agents, points of sale (store: for example in household appliances, furniture, garages, etc.) and remotely (for example via the internet).
Credit institutions
Credit institutions (savings banks) are defined by legislation as companies whose activity consists of:
- receiving deposits of money or other repayable funds from the public and
- granting credits for their own account;
Credit institutions are banks, the two terms are synonymous.
Credit companies
Credit companies are lenders that are not credit institutions and have authorization from the SPF Economy to grant credit.
Differences between a bank (credit institution) and a credit company
A bank offers you a whole range of financial services (current account, savings account, home banking, investment advice, tax or wealth advice, etc.) whereas a credit company is a company whose sole corporate purpose is to grant credits for its own account (which a bank also does, of course!).
Credit intermediary / credit broker
A broker or credit intermediary – the two terms are synonymous – is neither a bank nor a credit company.
The broker or credit intermediary does not grant credit. It simply connects a client seeking credit with a bank or credit company that will grant the credit.
It is therefore a… credit intermediary!
The credit broker is now responsible for finding your credit at the best rate. They will find solutions tailored to your projects under the best conditions. Perform your online credit simulation.
What are the benefits of contacting an intermediary rather than a bank or a credit company?
There are several benefits:
- The credit intermediary helps you prepare your file and submits it on your behalf: they are your intermediary, your representative. They provide you with their expertise, their connections;
- The credit intermediary puts several banks or credit companies in competition and consequently. They offer you the best market offer for your request, taking into account your specific risk profile.
- The credit intermediary is in contact with the public: they can get you a decision in 48 hours, which no bank or credit company can offer you;
- The credit intermediary advises you beforehand. They offer you the product that is likely to be accepted by a bank or a credit company. It is our duty to advise.
- In case of difficulties during your repayments, the broker is much more responsive and pragmatic than a bank or a credit company. They defend your file as your insurance broker would in case of a fire in your house. The broker is truly a close partner.