Today, it is not uncommon to need to make credits. Whether they are loans to alleviate an occasional cash flow problem, a revolving credit allowing to have a reserve of money or a mortgage, the loan application can be long and tedious. To set up a credit application file, you will therefore need to be well informed about the various possible credits as well as to take stock of your financial situation and your repayment capacities. When applying for credit, you must do everything in your power to ensure that this credit application is accepted. Your project will depend on the outcome of this credit application. To facilitate the steps to follow when applying for credit, we will take stock of what you need to know: what is a credit application? how to do it? what to pay attention to? what are the criteria to be met when submitting your request? which credit to choose? how to determine your budget? In short, thanks to this article you will have all the keys to carry out your credit application as well as possible and thus carry out your project.
What is credit application?
When you want to make a loan, it means making a loan request. A credit application is nothing more than a file that will allow you to apply to a credit institution to obtain the credit necessary for the realization of your project. For this credit application, you will need to gather a certain number of documents that the credit organization to which you have appealed can ask you to put together the file of your application. However, before applying for credit, it is important to have targeted your needs. What is your project? Do you want to buy a car? Do you need liquidity? Would you like to become an owner? How much can you borrow? What is your debt ratio? What are the interest rates applied to your request for credit? So many questions that will allow you to make the best credit application and see it accepted by the organizations you have chosen.
Credit demand and interest rates: how to navigate?
When applying for credit, find out about the interest rates in effect at the time you want to apply for credit. Interest rates are very important when applying for credit. Indeed, applying for credit is certainly a free act, but credit is not free. When you go to make a loan, it will cost you money. The cost of your credit is determined by the interest rate that was negotiated when you applied for credit. In other words, the interest rate on a loan will allow you to determine the amount you will have to pay the lender based on the capital you have borrowed. Interest represents the income of the credit agency for loaning you that amount of money. The higher the interest rate, the higher the amount borrowed, the higher the cost of your credit will be. When applying for credit, you will therefore have to think carefully about the amount borrowed but also the interest rate at which you will carry out your credit. Besides the fact that this is a form of remuneration for the lender, the interest, calculated therefore thanks to the interest rate and the amount you borrowed, is a guarantee for the lender in the event that you cannot honor your loan. . Our advice is therefore to find out about the rates in effect when you go to apply for credit. Indeed, when you apply for credit, you will need to be interested in two rates. First of all you will need to find out about the benchmark rate. This rate is set by the Central Bank. It is a reference, the rate of your credit cannot be lower than this reference rate. If this is the case, beware of the credit agency you are going to approach. The same is true for the usury rate, which reflects the maximum rate that your future credit can take. Be aware that these two rates are reviewed every quarter, find out and pay attention to the rates that will be offered to you when you apply for credit. Whether too high or too low, an interest rate that does not fall within the range of reference rate and usury rate suggests that your loan application will not be legally admissible.
In addition, do not hesitate to compete with the credit organizations that you have chosen. You can easily find directions on the internet about the best interest rates for your credit. So take the time to study the different proposals. Remember, the more you borrow over the long term, the more your credit will cost you. Indeed, borrowing over the long term is certainly advantageous because it will reduce the amount of monthly payments but it will have a cost. The longer you extend the term, the more risk the credit organization takes in accepting your credit application. To mitigate these risks, the interest rate will be higher, this will allow the organization to repay itself in case you have difficulty honoring your credit. So perform simulations by increasing or decreasing the repayment period, the amount of monthly payments, etc. Determining your repayment capacities is an essential step in applying for credit. Thanks to this, you will be able to make the best credit application and therefore obtain the credit offer that is best suited to your needs.
Credit application and ability to borrow: how much can you ask for?
Making a loan implies that you are able to repay it. When you visit the websites of credit organizations or even the agencies of credit organizations, since September 1, 2010, following the Lagarde law, you will be able to read the following statement “a loan commits you and must be repaid. Check your repayment capacity before you commit". So when you apply for credit, after defining your project and your needs, make sure you can repay it. Nothing could be simpler, you just have to calculate your capacity to borrow. Thanks to loan calculators, you can define the monthly budget that you can allocate to your next loan. Remember that you should not find yourself in a situation of over-indebtedness. In this case, your credit request will be systematically refused. It is therefore important to keep in mind that the part of your budget intended for the repayment of your debts must not exceed more than a third of your income. The calculation of the capacity to borrow will take into account various parameters such as the repayment period and the interest rate of your loan, hence the need to perform several simulations before applying for a loan. Thanks to the internet, you will be able to perform a good number of credit application simulations so do not hesitate. Although it may seem tedious to you, it can save you a lot of money. But when you make a loan to have money, saving money is essential. Calculating your repayment capacity will therefore allow you to apply for better credit according to your expectations and your resources. Remember that over-indebtedness can have a big impact on your daily life. Indeed, by being over-indebted, you risk being stuck on the registers of the Banks of United States. You could then have problems obtaining means of payment (credit card or checkbook) or be banned from banking. So do not hesitate to take the time to calculate your repayment capacities, the calculation of the monthly payments that you can allocate monthly to your new project. Perform all the simulations necessary to make the best loan application, the one that you will not fail, the one that will meet your expectations but also your budget.
How to apply for credit?
First of all, you will need to have correctly situated your request. What credit do you want to achieve? Do you want to request money without having a defined project? apply for personal credit . Do you want to buy something like a car? apply for a car loan. Do you want to have a sum of money available that you can use in several installments? apply for revolving credit. You want to invest in real estate, a mortgage application will then be necessary. Either way, each credit application will be different. The documents to provide, the process but also the deadlines may vary depending on the credit application you are going to make. In addition, it is not uncommon for the credit application to be different for the same credit depending on the organization to which you have appealed for this credit application. It is therefore very important to be well informed before applying for credit to ensure the success of the latter.
Once you have targeted your credit organization, that you have gathered all the necessary information requested by the credit organization, all you have to do is make your credit application. For this, you can directly go to an agency of the credit organization that you have chosen or make your request directly on the website of the organization. Each of the two options has its advantages. Indeed, by going to an agency you will have a direct and human connection. It can be reassuring and be more user-friendly. However, although your interlocutor is informed and is certainly able to respond to your credit request, the final response to your credit request takes longer than when you go through the website. Indeed, by going directly to the site, you will speed up the credit application. All you need to do is scan the documents and send them. In general, you get a response to your credit request within 48 hours (compared to several days in the case of an agency request). So choose the solution that seems best suited to your situation and your expectations. Some organizations do not have an agency and are only present on the internet. So inform yourself well before selecting the organizations you are going to choose to make your credit application.
Applying for credit is an important step. Do not hesitate to ask for information from competent people. Turn to those around you, many people have had recourse to credit in their lifetime. Their experience could help you better carry out your credit application.
Finally, a person who can help you with your credit application is none other than your banker. In fact, we are generally loyal to our banking establishment. Your banker knows your situation, your cash inflows and outflows, so he can help you when you apply for credit. Don't worry, you don't have to apply for credit at your bank. You can simply ask for information, find out about what is currently being done, better target your project. Applying for credit, especially when it comes to mortgage, is something that takes time and investment. All the advice is good to take to make the best loan application for your project.
The choice of the credit organization: why apply for credit in several credit organizations?
When you apply for credit, there is no guarantee that this credit application will be granted to you, even if your credit application file seems acceptable to you. Indeed, only the credit organization has the power to decide if your credit application will be accepted and if you will be able to carry out your project. You must therefore think carefully about the organizations in which you submit your credit application and verify that this credit application is correct. If your file contains errors, you risk being refused your request for credit in an organization. However, if for example you choose to apply for credit in a banking establishment, even if the banking establishments are mainly regional, you risk no longer being able to apply for credit in all the banking establishments of this sign. So be sure to make this credit request.
Multiplying your credit request in too many establishments is not to your advantage either. Indeed, if your file is not in line with the expectations of the establishment, you will be refused your credit request. If in the future you resume contact with the same establishment, the lenders may refuse your credit application because all the lending institutions keep traces of the various credit requests.
It is therefore essential to choose the establishments in which you wish to file a credit application. Choosing 3 establishments seems to be a good compromise, you do not waste your time carrying out too many steps during your application and you can play the competition (especially in the case of a mortgage application to have the best rate of interest).
So do your research before submitting your credit application. Also check if your file meets the various criteria that you should meet to obtain credit in the establishment that you have decided to apply for your credit application.
What are the major criteria to be met in order to apply for credit?
Applying for credit will ask you to meet certain criteria. Indeed, even if anyone can apply for credit, there is no guarantee that this credit application will be accepted by the organization you have requested.
When you apply for credit, certain criteria will be examined by the lender. You must therefore be of legal age and have a bank account to apply for credit. Secondly, the credit institution will ask you to justify the inflow of money and stable income. For this, your financial situation will be studied. The lender is on duty to check your creditworthiness. It will therefore ask you for information on your income but also on your other credits that may be in progress. The lender when you apply for credit will check your debt ratio and finally to know if you are in a situation of over-indebtedness, namely in the inability to repay your debts (article L.330-1 of the consumer code). This debt ratio must not exceed 33% of the total monthly income of the individual (or, where applicable, of the household). In the event that this rate exceeds 33%, your situation will be considered complicated. However, the rate of 33% is a usage rate, no legal text legally stipulates this rate. The situations will therefore be studied on a case-by-case basis. However, you will have little chance of seeing your credit application validated if your income is low with a rate over 33%. If you can justify high monthly income, this rate may be revised upwards (35% or more). The lending institution will need to verify if you are listed on the Bank of United States files. If this is the case, your credit request will be refused. Indeed, in United States, you are legally protected from over-indebtedness.
In addition to your income, your family situation will be taken into consideration as well as your age. Indeed, although it may seem anecdotal, age is of great importance when applying for credit. Whether for a consumer loan or a mortgage, your age will be taken into account when applying for credit and it may be a factor of refusal when applying for credit.
Thus, if you are too young (generally between 18 and 25 years old, but these are only usage data), banks have difficulty accepting a loan application. Young, you cannot justify your situation, you do not have proof that you honor your debts well, you also have little savings so nothing that can justify that you know how to manage your budget. Don't panic, not all organizations are afraid of lending money to young people, so you will need to target the right organizations to file your credit application.
In the opposite case, namely if you are too old, the loan application can be also complicated because the credit organizations will have some reluctance. Indeed, older insurance can be higher, as can interest rates. Generally speaking, lending institutions negotiate rates with insurers. When the individual is old, he will not be able to benefit from these rates which are generally negotiated for the “active” age group. The impact on your credit will therefore be higher and the application for credit more complicated. Increasing the price of insurance or the interest rate on your credit is therefore additional security for the lender, especially when the borrower is over 65 years of age. However, some organizations offer facilities for borrowers over the age of 65, so in your loan application, ask for declining monthly payments over time. This allows you to anticipate the decrease in your income linked, for example, to your retirement or to a possible loss of employment.
There does not seem to be an ideal age to apply for credit, however, when you are over 25, have a stable income and can justify saving, your loan application will be longer. chances of being accepted by the majority of credit institutions.
What documents do I need to provide when applying for a loan?
To verify that your situation and therefore your credit application meets the desired criteria, the lending institution will ask you in most cases for supporting documents. Although these vary depending on the type of credit application, you will generally have the same documents to provide. When you apply for credit, you will need to provide a certain amount of information to the organization to which you are sending this credit application. We will help you take stock of the various documents to provide when applying for credit.
First, you will need to justify your identity and your personal situation. Nothing could be simpler, you just need to provide proof of identity such as your national identity card or your passport. Your personal situation will be justified thanks to your family record book, marriage record book or a PACS certificate issued by your town hall, if you are in a relationship. Proof of address may also be requested. In this case, have an invoice in your name dated less than 3 months (be careful, mobile phone bills may be refused, prefer electricity, water or gas bills). If you are hosted, ask the person hosting you to give you a sworn statement stating that they are hosting you for free. Also remember to ask him for proof of identity and address. It is better to have more proof than not enough when you submit your credit application.
To apply for credit, you must be able to repay future credit. To justify your resources, the lending institution may ask you for your latest pay slips (the last 2 or 3) but also any other document justifying a regular inflow of money (annuity, pension, allowance, retirement etc.). You may also be required to provide your income tax notices.
Case of a mortgage
In the case of a mortgage application, it is possible that the establishment that you request to make your credit application needs more information to grant you this loan. Thus, when applying for a mortgage, provide yourself with the elements to justify a personal contribution. To do this, attach to your loan application proof of your company's profits, donations, your profit-sharing, your family loans or even, if applicable, proof of your home savings.
Applying for a mortgage is a very important step in your project, so you need to put all the cards on your side. In order to reassure the establishment you are requesting, your credit application should be as well as possible. For that, it is interesting and important to gather elements allowing to give information on the credits in progress. Thus, to your loan application, add the amortization tables for your various loans, specifying the outstanding capital. This will allow the lender to have a real idea of your financial situation when you apply for credit.
In addition, when you apply for a mortgage, being able to justify savings can be a real asset for you. Thus, if you have life insurance, do not hesitate to provide supporting documents in your credit application for your possible life insurance. This will give you more credibility with the establishment you have requested to carry out your credit application.
One last tip: when you go to credit institutions to make your request, bring the originals of your supporting documents, your contact person will make copies if necessary. This helps reassure the establishment you are requesting when you apply for credit. You provide real proof of your situation. Indeed, if you only provide copies in your credit application, nothing allows the lender to verify your situation except your good faith. However, this is seldom enough. So don't waste time, take the originals with you so that your credit application has a better chance of being accepted.
Why do you have to provide supporting documents?
When you want to achieve credit, the law requires the lender to check the creditworthiness of the borrower. It is for this purpose that the lender will ask you to justify your situation before accepting or not your credit application. Usually the parts are always the same regardless of the credit request. Namely, at least proof of address, income and identity, the lender may also consult the registers of the Bank of United States.
You have the right to refuse to provide the documents that the lender requests from you. However, in the event that during your credit application you refuse to provide certain documents, this credit application will be automatically refused. Indeed, the credit organization must be able to verify your situation. If he does not have the necessary documents to do so, he will not be able to legally validate your credit request.
Do not take any risks, give all the necessary supporting documents. In the event that your credit application is refused, even if this can have serious consequences for you, it will be good to take a step back from your situation and better review your priorities. It is often bad for good. If your credit application is refused, it is usually because you are already in a situation that does not allow you or no longer to repay additional credit. You will need to review the need for the project you want to finance with this loan application or consider other means of financing. Indeed, there are associations specializing in credit application for special cases. Check with a social worker or organizations such as the popular relief or the red cross, they will guide you on the steps to follow to apply for credit. The CAF or the Pôle Emploi can also in certain specific cases help you in your loan application. Do not hesitate to contact them.
What are the structures to help you in your credit application process?
Do you have a project and you need money to carry it out? Today you just have to type "credit" into a search engine to get hundreds of offers. However, it is not always easy to find your way around. Between the vocabulary and the multitude of establishments, it is difficult to know how to apply for credit.
To help you when you are looking to apply for credit, you can first consult the various offers on the websites of organizations specializing in credit applications. In the majority of cases, on the sites, you will be able to consult the various criteria that you should meet in the event that you want to apply for credit in their establishment.
By going on the internet you can have access to tools such as credit comparators. These credit comparators allow you to compare the different offers offered by credit institutions. This allows you to make a selection of the most advantageous offers. Credit comparators have been created to make your job easier when you research your credit application. Easy and quick to use, they will allow you to choose the organizations that meet your criteria when applying for credit. Each credit comparator is different and the credit offers that will be offered to you are linked to the organizations listed in the credit comparator database. It is therefore interesting to choose the right credit comparator, namely the one that lists a large number of organizations. You can opt for the solution of choosing several credit comparators. The credit comparator will allow you to go faster in your credit application. You can more quickly target organizations likely to respond favorably to your credit application. You will have information on the amounts you can borrow from each organization as well as the various criteria. You will quickly have all the information you need to know in which organization to file your credit application.
On the New Buryday Lilies website, you can easily find the main criteria to meet when applying for credit. Indeed, our credit comparator will allow you to make an initial selection of organizations that will be able to respond favorably to your credit request. By indicating your age, the amount and the repayment period that you want, the New Buryday Lilies comparator will indicate the different credit organizations capable of responding positively to your credit request. Once again, we invite you to choose only three organizations to carry out your credit application. This will allow you to increase your chances at first but also not to waste too much time in making several requests for credits. In addition, this allows you to keep other chances in the event that your credit application is refused in the first 3 establishments that you have requested.
There are many credit organizations. You should therefore be well informed about the ones you will choose to make your credit applications.
You can also use a broker when you apply for credit. This person can help you in the steps to follow and in the preparation of your credit application. However, find out about the broker you are seeking, some people are unscrupulous, they might not do things conscientiously which will cause you to miss an offer, and this more particularly in the case of a request for mortgage.
And when your credit application is validated ...
Since the Lagarde law of July 2010, when you apply for credit you are better protected. Thus, after submitting your credit application, the lending institution will study your request. In the event that the latter responds favorably to your credit request, he must make a written offer meeting the expectations you have stipulated. All information relating to your credit application must be found in this document. The written offer made by the establishment you requested to make your credit request is valid for 15 days. Au-delà de ce délai, l'établissement de crédit devra effectuer une nouvelle offre écrite répondant toujours aux demandes de votre demande de crédit. Vous avez aussi la possibilité de vous rétracter. En effet, si vous signez l'offre, cette signature n'est pas définitive. Vous avez depuis la loi Lagarde un délai de rétractation de 14 jours. Profitez-en donc pour vérifier que tous les critères de votre demande de crédit sont bien repris dans l'offre de crédit et n'hésitez pas à vous rétracter si votre demande de crédit n'a pas été respectée.
Dans le cas parfait où la demande de crédit est identique à l'offre de crédit, la levée des fonds de votre demande de crédit sera possible dans un délai de 8 jours à la suite de la signature du crédit.
Votre demande de crédit sera donc retranscrite sous forme de contrat de crédit. La demande de crédit sera alors un contrat encadré par des textes de loi (L 312-1 et suivants du code de la consommation) qui devra être signé par les deux partis. Lors de la signature du contrat, vous et l'organisme prêteur vous engagez à respecter les conditions qui seront mentionnées par ce contrat. Aucun changement ne sera possible après la période de rétractation sauf s'ils sont mentionnés dans le contrat. A vous de vérifier lors de la signature que tous les critères demandés lors de la demande de crédit sont bien respectés dans le contrat établi. Vérifiez donc que la nature de votre crédit est bien mentionnée, que le taux d'intérêt et la durée de remboursement sont bien précisés. N'oubliez pas aussi de vérifier la possibilité de faire un remboursement anticipé. En effet, lorsque vous effectuez une demande de crédit, vous avez besoin d'une somme d'argent que vous ne possédez pas. Or, vous pouvez avoir une rentrée d'argent suite à une augmentation, un gain ou encore par exemple un héritage. Vous souhaiterez peut-être solder votre crédit. Cependant, certains crédits ne peuvent pas être remboursés de manière anticipée sans frais. Nous vous conseillons donc lors de votre demande de crédit de vérifier les clauses en lien avec le remboursement anticipé et pourquoi pas de les faire rajouter si le cas échéant elles ne sont pas présentes lors de votre demande de crédit.
Enfin, lorsque votre demande de crédit est retranscrite en contrat de crédit par l'organisme prêteur, il vous faudra vérifier que le tableau d'amortissement ainsi que le taux. Pour finir la loi oblige l'organisme que vous avez sollicité pour votre demande de crédit à mentionner l'article L.311-16 lorsque la demande de crédit concerne un crédit renouvelable «"Ce taux est révisable. Il suivra les variations en plus ou en moins du taux de base que le prêteur applique aux opérations de même nature ou du taux qui figure dans les barèmes qu'il diffuse auprès du public. En cas de révision du taux, vous en serez préalablement informé par courrier avant la date effective d'application du nouveau taux. Vous pouvez, dans un délai de trente jours après réception de cette information, sur demande écrite adressée au prêteur, refuser cette révision. Dans ce cas, votre droit à crédit prend fin et le remboursement du crédit déjà utilisé s'effectuera de manière échelonnée, sauf avis contraire de votre part, aux conditions applicables avant la modification que vous avez refusée".
La demande de crédit en bref…
Effectuer une demande de crédit passe par la réalisation de différentes étapes primordiales afin de mettre toutes les chances de son côté pour voir cette demande acceptée. Ainsi, quel que soit votre projetà savoir un besoin d'argent, l'achat d'un véhicule, une naissance, un voyage ou un projet immobilier, tout passe par une demande de crédit. Pour cela, vous devrez donc vous informer de ce qui se fait en termes de crédit sur le marché: quels sont les crédits existants? quel crédit est en adéquation avec mon projet? voiture? liquidité? immobilier: quel est vraiment mon projet?
Une fois que vous aurez bien ciblé vos besoins et vos capacités de remboursement et à emprunter, vous pourrez effectuer une demande de crédit. Vous aurez alors des tas de possibilités. Munissez-vous de patience, choisissez les bons sites, les bons comparateurs et ne retenez que trois organismes. Montez votre demande de crédit avec votre banquier ou encore un coursier si vous avez besoin d'être rassuré. Renseignez-vous bien sur les taux en cours sur les différents crédits que vous souhaitez effectuer. Vérifiez bien que votre demande à un taux d'intérêt compris entre le taux de référence et le taux d'usure en vigueur pour votre crédit. N'oubliez pas de fournir tous les documents demandés afin de mettre toutes les chances de votre côté et ainsi de faire valider votre demande de crédit. Un conseil: si vous vous rendez en agence, munissez-vous des originaux des papiers justificatifs. Lors d'une demande de crédit, cela rassure l'établissement prêteur d'avoir les papiers originaux.