Credit is today a solution to access to wealth particularly democratized in our societies and is no longer an exception to the norm. Everyone now can subscribe to a loan that it is a consumer loan, a loan to real estate or even a credit for a specific business project. If we add to these financial products agencies offering credit buy-backs, revolving loans and micro-credits, the loan market has really become commonplace and is fueling a thriving sector of activity.
The revolving credit or reconstitutable credit
Is a loan with a predefined amount that is reconstituted over the repayments and the amount can be reused as and when the loan. The term of the revolving credit is one year and can be renewed every year. APR – Annual Total Effective Rate – is recalculated annually and may be higher than for a typical loan. After three years, the creditworthiness of the borrower is checked again. A specific bank card is assigned to the borrower to sign the contract. This financial device is defined by the Hamon law defining the 2014 reform of the consumer code.
A loan remains an official gesture where the identity of the borrower is required and documents justifying a certain number of elements on the latter are mandatory and requested by the financial organizations. Credit therefore always begins with the constitution of a file. On the other hand, credit without proof does exist. To what extent can credit be without credentials?
The supporting documents required for all types of credit
It includes revolving credits without proof, are an identity document, a bank account statement and pay slips, generally dating from the last three months. Some financial institutions will be able to do without pay slips but this is rare and a form of guarantee – a third for example – will be requested or required. Credit without proof does not derogate from the rule. In the constitution of the file can even be added the bank statements of the last three months which will justify the banking behavior of the borrower. The savings capacity will also be measured as well as the debt ratio, which means that the borrower’s repayment capacity is calculated based on the loans already in progress. A stable job (permanent job title, high hierarchical function, for example) will be an asset. Finally, it is important not to be stuck at the Bank of Rose, because it is much more difficult to obtain a loan in a situation of banking prohibition.
A credit requiring the constitution of a file but no justification of the use
In opposition to the appropriated credit which has a well defined use at the time of the constitution of the file. The most obvious example of credit affected is the mortgage where the mounting of the file includes the purchase of a property and a well-defined amount. The term “revolving credit without justification” does not concern the assembly of the file but the purpose of the loan which remains free with regard to the use. The borrower is allowed to use his credit in the desired way however he will still have to justify the nature of his loan, to a certain extent. Credit without proof remains a type of personal loan whose purpose is the consumption of good.