Consumer credit covers very different realities depending on the type of loan, the amount, and the repayment duration. Comparing these parameters allows for measuring the differences in actual costs between a personal loan, a designated credit, or a revolving credit. The regulatory framework is also evolving, with notable changes expected by the end of 2026 that will reshape the scope of consumer credit.
Designated credit, personal loan, and revolving credit: comparative table
Three main categories of consumer credit coexist. Their mechanisms, costs, and uses differ on several structural points.
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| Criteria | Designated Credit | Personal Loan | Revolving Credit |
|---|---|---|---|
| Purpose of financing | Specific item (car, renovations, appliances) | Flexible (projects, cash flow) | Flexible, renewable reserve |
| Amount | From €200 to €75,000 | From €200 to €75,000 | Variable depending on the granted limit |
| Rate (APR) | Generally the lowest of the three | Intermediate | The highest |
| Link to purchase | Cancellation of credit if the sale does not occur | No legal link | No legal link |
| Repayment duration | Fixed in the contract | Fixed in the contract | Variable, renewable each year |
| Withdrawal period | 14 days | 14 days | 14 days |
Designated credit offers additional security for the borrower: if the item is not delivered or if the sale is canceled, the credit contract automatically terminates. This protection does not exist with a personal loan.
The online simulators available on conso-credit.fr allow for quick comparison of the total cost of each option based on the borrowed amount and the chosen duration.
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APR and total cost of consumer credit: what really makes the difference
The annual percentage rate (APR) remains the only reliable indicator for comparing two consumer credit offers. It includes interest, processing fees, and the cost of any borrower insurance.
Why the APR of revolving credit is structurally higher
Revolving credit functions like a replenishable cash reserve. The lending organization does not know either the exact amount that will be used or the actual repayment duration. This increased risk for the lender mechanically translates into a higher APR than that of a personal loan with the same amount and duration.
Conversely, designated credit for a specific purchase (car, renovations) presents a lower risk since the financed item serves as implicit collateral. The type of credit chosen influences the total cost more than negotiating the rate.
The impact of duration on repayment
Extending the repayment duration reduces the monthly payment but increases the total cost. On a personal loan of several thousand euros, moving from a short duration to a long duration can represent several hundred euros in additional interest.
Reducing the repayment duration is the most direct lever to limit the cost of a loan. Before signing, checking one’s ability to absorb higher monthly payments over a shorter period remains the most cost-effective precaution.
Consumer credit reform: what changes on November 20, 2026
The European directive 2023/2225 on consumer credit contracts (DCC2) is currently being transposed into French law. Several modifications will come into effect on November 20, 2026 and will significantly broaden the scope of consumer credit.
- Credits of less than €200 (mini-credits) will be integrated into the consumer credit regime, with a withdrawal period of 14 days.
- Split or deferred payments of less than 3 months, including so-called “free” credits, will have to comply with pre-contractual information rules, solvency assessment, and APR display.
- Credits between €75,000 and €100,000 will fall under the scope of consumer credit, whereas they were previously excluded.
- Leasing with an option to purchase (LOA) will be treated as consumer credit, with an obligation to display an APR including all fees and to provide a standardized information sheet.
This reform particularly targets the installment payment options offered by online shopping sites. Until now, these facilities were outside the credit regulations. The “3 times without fees” will legally be considered consumer credit starting November 2026.
Automobile LOA and APR transparency
The inclusion of LOA within the scope of consumer credit will have a concrete effect for auto leasing subscribers. Dealers and financing organizations will have to provide a standardized information sheet allowing for the comparison of the total cost of an LOA with that of a traditional designated credit.
Until now, the lack of an obligation to display an APR on LOAs made comparison difficult. A borrower will now be able to compare LOA and auto credit on an equal basis.
Consumer credit: pitfalls to check before signing
Several points deserve particular attention when comparing consumer credit offers.
Borrower insurance is rarely mandatory on consumer credit, unlike mortgage credit. Organizations systematically offer it, but the subscriber can refuse it or choose an external contract. Checking if the insurance is included in the displayed APR helps avoid unpleasant surprises regarding the actual cost.
Revolving credit is subject to annual renewal. The lending organization must inform the subscriber three months before the deadline. In the absence of use for a year, the reserve is automatically suspended. After two years without use, the contract is terminated.
The 14-day withdrawal right applies to all types of consumer credit. This period runs from the signing of the contract, not from the receipt of funds. In the case of designated credit, withdrawal results in the cancellation of the associated sale.
The transposition of the European directive at the end of 2026 will add new information obligations for lenders, including on mini-credits and split payments. Monitoring these regulatory developments will allow borrowers to better calibrate their choice between personal loans, designated credit, or LOA.