—”Hello, am I at the Crédit Populaire bank?”
—”Certainly sir, you have correctly formed the number of Crédit Populaire Européen, how can we be useful to you?” Find out what a credit broker is.
To begin with, everything is fine! Except that Crédit Populaire Européen is not a bank but a credit and insurance intermediary. Then, a credit intermediary is also called a credit broker.
Banks, credit institutions, credit companies, credit intermediaries, brokers: the public then gives the impression of confusing these notions which therefore cover different services.
So let’s take stock together to help you understand what’s behind the “CPE” door that you just pushed! Today we say “It’s not rocket science!”
Credit institutions / credit companies
Consumer credit can be offered by bank lenders – i.e. banks and credit institutions – and non-bank lenders – i.e. credit companies.
All these lenders must have approval from the Federal Public Service Economy for the granting of 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 (stores: 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:
- receive deposits of money or other repayable funds from the public and
- to grant credits for their own account;
Credit institutions are banks, the two terms are synonymous.
Credit companies
Credit companies are lenders which are not credit institutions and which have approval from the FPS Economy to grant credit.
Differences between a bank (credit institution) and credit company
A bank offers you a whole series of financial services (current account, savings account, home banking, investment advice, tax or wealth advice, etc.) while a credit company is a company whose sole corporate purpose is to grant credits on its own account (which of course a bank also does!).
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 customer who is seeking credit with a bank or credit company which will grant them credit.
It is therefore a…credit intermediary!
The credit broker is now responsible for finding your credit at the best rate. He will work with you to find solutions adapted to your projects under the best conditions. Simulate your credit online.
What are the benefits of contacting an intermediary rather than a bank or credit company?
There are several interests:
- The credit intermediary helps you prepare your file and submits it for you: he is your intermediary, your representative. He puts his know-how and his relationships at your disposal;
- The credit intermediary brings several banks or credit companies into competition and therefore. It offers you the best offer on the market for your request and taking into account your specific risk profile.
- The credit intermediary is in contact with the public: he can get you a decision in 48 hours, which no bank or credit companies can offer you;
- The credit intermediary advises you in advance. It offers you the product which will be likely to be accepted by a bank or a credit company. It is our duty to advise.
- In the event of difficulties in the course of your repayments, the broker is much more responsive and pragmatic than a bank or credit company. He defends your case like your insurance broker would in the event of a house fire. The broker is truly a close partner.
