Revolving credit without proof

Revolving credit without proof requires, like any credit, the constitution of a file but no proof of use. Learn more

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Revolving credit without proof, is it possible?

Credit is today a particularly democratized access solution to wealth in our societies and is no longer an exception to the norm. Anyone can now take out a loan, whether it is a consumer loan, a loan for real estate or even a loan aimed at a specific professional project. If we add to these financial products organizations offering credit redemptions, revolving credits and micro credits , the loan market has truly become commonplace and feeds a flourishing industry.

The revolving credit or revolving credit or even reconstituting credit is a loan with a predefined amount which is reconstituted over the repayments and whose amount can be reused as and when the loan is made. The term of the revolving credit is one year and can be renewed every year. The APR - Annual Global Effective Rate - is recalculated every year and may turn out to be higher than for a traditional loan. After three years, the borrower's creditworthiness is checked again. A specific bank card is allocated to the borrower upon signature of the contract. This financial system 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 financial organizations. Credit therefore always begins with the constitution of a file. On the other hand, the credit without proof does exist. How far can credit go without supporting documents?

The supporting documents required for any type of credit, including renewable credits without proof, are an identity document, a bank identity statement and payslips, generally dating from the last three months. Some financial organizations will be able to do without pay slips but this remains rare and a form of guarantee - from a third party for example - will be requested, or even required. Credit without proof is no exception to the rule. To 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, that is to say that the borrower's repayment capacities are calculated according to the credits already in progress. A stable job (permanent contract, high hierarchical function, for example) will be an asset. Finally, it is important not to be stuck with the bank of United States, because it is much more difficult to obtain a loan in a situation of banking prohibition.

The credit without proof is a credit requiring the constitution of a file but no justification of use, in opposition to the affected credit which has a well-defined use during the constitution of the file. The most obvious example of affected credit is real estate credit where the preparation of the file includes the purchase of a property and a well defined amount. The term "revolving credit without proof" does not therefore concern the assembly of the file but the purpose of the loan which remains free as regards the use. The borrower is authorized to use his credit as desired, 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 goods.

Specific characteristics

The amount of revolving credit without proof varies between $ 200 and $ 75,000, however the amount of the loan depends mainly on the borrower's income and his repayment capacity. The total amount is paid to the borrower in one go following the signing of the loan. Revolving credit without proof is always a minimum of one year. Depending on the financial situation of the borrower, especially if the latter owns real estate, the banking organization may extend the term of the loan.

One of the main characteristics of personal revolving credit without proof is that it is not linked to a particular good. Thus, as soon as the credit is signed, even if the good is not delivered - a car for example that you buy from a private individual - the borrower is obliged to repay it and the money is paid to him no matter what. Indeed, engaging with a credit without proof imposes a repayment and the repayment capacities can rarely exceed 33% of the total amount of the borrower's income.

As with affected credit, prepayments are possible, if you have an unexpected inflow of money that you want to use to pay off the loan. For loans under $ 10,000, no prepayment indemnity will be applied most of the time. Beyond this amount, fees between 0.5% and 1% will be applied depending on the contract established between the organization and the borrower. These costs can be part of the negotiation with the borrowing organization for the signing of the credit contract.

Insurance is not an obligation. In addition, thanks to the Lagarde Law if the borrower wishes to take out insurance, he can do so with another banking organization or another establishment and the latter is no longer required to subscribe to the insurance of the lender organization. The TAEA or Effective Annual Insurance Rate allows you to know the annual and monthly amount to be paid with the insurance taken out. Most organizations include it in their proposal. The loan rate or APR - Global Effective Annual Rate - remains fixed for the duration of the loan. The deadlines are also constant and equal and they must be repaid regularly. However, it is possible to stop the installments for a period in the event of payment difficulty. On the other hand, the duration of the loan is increased and additional costs may be imposed.

There are a plethora of organizations granting renewable credits without proof. Indeed, it can be a bank but also a financial institution or a bank loan broker. An informed comparison of the different proposals is often necessary. Now, many of these organizations offer quotes and simulations online, available in a few clicks, without commitment or supporting documents, at the start.

Three cards, three needs

Revolving credit offers three credit cards depending on the credit requested.

Private cards

These only work with a specific and limited type of signs and are offered by stores in partnership with a bank or financial organization. You can only use them with participating stores.

Cards accepted by all brands

The banking organization makes an agreement with several brands so that the card is accepted and you can use it in the list given in the revolving credit contract.

Cards that work like a bank card

These cards work in all brands and allow you to pay for any type of product such as a traditional bank card, always without any justification.

Revolving credit is a provision that allows you to have at your disposal a sum of money that can be used in several installments. Repayments are calculated as soon as an expense - a line of credit - is made by the borrower and the rates for the fraction of the credit used will vary from year to year. The reimbursements are fixed or flexible and allow you to reimburse the money used, the insurance taken out and the interest due for the month.

To conclude, the personal revolving loan without proof is a free loan which allows the rapid use of funds, on file and with guarantees, for an undetermined purpose and with relative flexibility. However, you should know that for certain goods, including vehicles or housing, there are also many options: real estate loans and balloon credit and LOA (rental with option to purchase) for vehicles. So choosing the right credit, before comparing rates, is also an important option. Even if now finance gives the possibility of having access to a sum of money which can become significant without expressed goal, the analysis of the need sometimes makes it possible to define a more interesting choice. Finally, it turns out that in United States, the majority of over-indebted people have to their credit one or more revolving loans. Indeed, the amounts to be repaid are low, the repayment periods are long and consequent and few people are thus aware of the high rates of interest. Another possibility is to take out a personal loan that ensures fixed and contractual maturities and an interest rate that will remain fixed. Personal loans are also loans that can be made without proof and do not have to be allocated to an asset. The borrower therefore has the freedom to use the funds as they see fit. There are four types of personal loans: the cash loan, the car loan, the leisure loan and the work loan. In a few words, revolving credit remains a windfall that is not without danger for those who wish to be free, to benefit from daily life and from undefined future projects. The world of credit also offers other possibilities!