Online credit without proof
Online credit without proof most often refers to a personal loan obtained through the website of a financial organization.
The personal loan, a credit without proof of use
The personal loan is a consumer credit that can be granted by a bank or an establishment specializing in consumer credit. It is a credit whose particularity is that it does not require proof of use. This means that a person signing a personal loan agreement can dispose of the borrowed amount the way they want, without having to justify their purchases to the lender. It is a loan that can be used to finance any type of expenditure, whether it is, for example, a piece of equipment or a trip. This is how it differs from the affected loan which is linked to the purchase of a specific good or service.
The rate of the personal loan can be freely fixed by the lender, being careful however not to exceed the rate of usury, which is the maximum rate applicable for loans. It is updated regularly based on the average rates charged by different lenders and can be checked on the Bank of United States website. Depending on the different lending agencies, it is possible to borrow up to US $ 75,000. The method of repayment and the duration of the contract are variable but in general, it is carried out by monthly installments and the contract cannot exceed 7 or 8 years.
There is mandatory information that must be communicated by the lender to the borrower, before signing the contract. This includes the identity of the lender as well as its address, the amount of the loan as well as the conditions for making the borrowed amount available, the repayment period, the number and frequency of monthly payments, the total amount to be repaid. , the cost of administrative fees, the APR (annual percentage rate), compensation in the event of late reimbursement. The lender must also inform the borrower concerning his right of withdrawal (which is 14 calendar days following the signing of the contract) as well as the laws concerning the period of validity of the offer but also the minimum period of reflection.
How to apply for credit online?
To apply for a loan online, you must first choose the bank or credit institution to contact. For this, you can use an online credit comparator which will allow you to have a general view of the different offers on the market so that you have the possibility to choose the one that suits you best. Once the lender has been chosen, all you have to do is complete an online questionnaire by filling in the necessary information to know if you are eligible for the credit to which you wish to subscribe. This includes information about your family, professional and banking situation. Then you will receive a response in principle, most often immediate, based on the elements declared. If this answer is favorable, the lender will send you a loan agreement that you will have to date and sign, then send it back to them. In addition, although the personal loan does not require proof of use of the amount borrowed, you will still need to provide the lender with the documents justifying your personal situation. You must attach them to the contract and then send them back to the financial institution so that the study of your file can be finalized. This includes documents justifying your identity and domiciliation, your professional situation as well as your banking situation.
Advantages and disadvantages of a personal loan
The personal loan is a simple, fast and flexible solution. It can meet specific needs and freely finance any type of project, without having to justify the use of borrowed capital. It can allow you to dispose of this amount as you see fit, which is very convenient in the event that the loan is not intended for a specific purchase. It is a credit that can be personalized, by choosing the duration of the contract as well as the monthly payments according to your situation. You can also repay the loan in advance, in part or in full. The duration of the credit as well as its rate are fixed, which reduces the risk of over-indebtedness compared to other types of loans such as revolving credit for example.
However, there are also some drawbacks to note. If you ever want to use this loan to finance the purchase of an object and a problem arises with the sale, the repayment of the credit will still have to be made. This is not the case with an affected loan whose contract is automatically canceled if the sale is not completed or if the object and defective. In addition, the interest rate of the personal loan is often higher than that of an affected loan because the lender does not have a guarantee linked to a specific purchase. For this same reason, the rules for acceptance are often stricter.