Consumer credit is financing granted by a bank or other lending institution to an individual for purchases of goods or services. However, this credit is not available to everyone. Credit rules are imposed by creditors.
Conditions for taking out consumer credit
To subscribe to a consumer credit, you must: be of full age, receive stable income, reside in France, not be registered in the national file of payment incidents of the Best Bank. This last restriction is intended to avoid cases of over-indebtedness.
More concretely, the lender will attach particular importance to the age of the borrower. Indeed, a borrower who is too young appears less solvent in the eyes of analysts, in particular because of the professional instability linked to this age group. An overly aged borrower, on the other hand, is considered to be at risk by the bank. In general, people with stable incomes, with an acceptable level of savings and a certain family stability represent the standard profile of a consumer credit underwriter.
How to take out consumer credit?
Taking out a mortgage is a strictly regulated action. Before signing his credit contract, the borrower must complete an information sheet indicating his family and professional situation, his possible current loans. This information is the subject of a declaration on honor. If the amount of the credit exceeds 3,000 USD, the borrower must provide supporting documents (pay slips, tax notices, etc.). This sheet allows the lender to determine the type of financing most suited to the applicant’s situation.
When his loan request is accepted, the borrower receives a prior offer of credit valid for 15 days from its delivery or its sending. The offer indicates the amount of the credit, its purpose, its rate, its duration, the cost, the APR as well as the repayment terms. The terms of the proposal cannot be changed during this 15 day period.
Once the credit offer has been accepted and then signed, the borrower has a withdrawal period of 14 calendar days. This period is 3 days in the event of immediate delivery of goods purchased with an assigned credit. It is possible to be accompanied in these steps by going through a specialized banking intermediary.