Consumer credit is the ideal way to carry out many projects, but obtaining it is very limited. The borrower and the lender must respect the different steps leading to the signing of the credit agreement.
Choice of credit
The borrower must first defines his needs. He can take advice from loan organizations or brokers during his credit search, the lender must provide him with a standardized sheet detailing the following information:
- the contact details of the lender;
- the type of credit;
- the amount and duration of the credit, the APR (The Annual Effective Global Rate).
This sheet allows you to compare and better sort among the different financing solutions offered. With this information, the borrower can know the cost of consumer credit and make his choice.
The loan application file
Once the choice has been made, the borrower must prepare a file for his credit application. This is to provide the lending institution with proof of its solvency by indicating its income, expenses, loans already in progress. If the amount of the credit is greater than $ 3,000, you must then communicate your tax assessment and your pay slips.
Study of the loan application file
It is then up to the lender to determine whether or not it grants the credit. The lender checks the creditworthiness of the borrower by analyzing the documents in the file and calculating the debt ratio of the client. The lender must also verify that the borrower is not included in the file of loan repayment incidents with the Banque de France.
The loan offer
If the loan application file is accepted, the credit organization presents an offer which specifies the terms of the loan:
- the amount and duration of the loan;
- the Global Annual Effective Rate (APR);
- the date of withdrawal and the amount of the monthly payments;
- the total cost of the loan.
The borrower then has 15 days to reflect in order to take advantage of the offer. Once the contract is signed, the customer has a withdrawal period of 14 days this time.
It’s pretty much that simple — it’s even possible to be approved for a loan in less than 24 hours if you’re applying for a loan online — but there’s always a lot to consider when applying for a loan, particularly when you’re doing it online