Younited Credit is a public limited company with a management board and supervisory board created in 2009. Formerly called Union Loan, this credit institution changed its name in 2016, after launching its activity in Italy. Younited Credit specializes in lending to individuals via the internet. This institution is the only one (other than banking institutions) to date to have the accreditation of a “credit institution providing investment services”, issued by the Prudential Control Authority.
Younited Credit targets two categories of consumers: the consumer who wants to take out a loan and the consumer who is ready to invest his money. At this stage, it is important to remind future investors that in addition to being of legal age and having a bank account, you must be able to justify two of the following three conditions to become an investor: justify a financial capital of '' at least 500,000 US dollars, justify an activity of active investor on the financial market and / or justify a professional activity in the sectors of finance of companies / market / banking / insurance. In addition, Younited Credit reminds future investors that the amount of the first rent must be at least 1000 US dollars (the amounts of other payments have no minimum or maximum). In addition, for borrowers, Younited Credit has defined criteria that consumers must meet: they must be aged between 18 and 70 years old, reside in the United States Metropolitan (absent from its territories, Younited Credit excludes the DOM / TOM as well as Corsica), not to have been registered with the Bank of United States and to have stable income.
Younited Credit only offers consumer credit and credit redemption to consumers. It is not possible to make a revolving, real estate or business creation loan with this establishment. Nevertheless, listening to its potential customers, the company offers solutions with partners.
Credit with Younited Credit
When consumers visit Younited Credit, they are therefore offered two choices: borrow or invest. When the consumer is a potential borrower, he can use the consumer credit simulator offered to him. He can then choose on the one hand the project and on the other hand the desired amount. As said previously, Younited Credit does not offer revolving credit or mortgage credit. However, these types of credit appear in the drop-down menu of the “project” item. If the consumer selects his products, he will be referred to new pages where he will learn about the various partnerships that Younited Credit offers to be able to finance its products. Thus in the case of a revolving credit, the establishment will offer him solutions with the Empruntis group, while for a real estate loan, it will refer the consumer to the company Crédit.fr.
The borrower will therefore have the choice with different projects. At this stage, only the desired amount is requested. This amount must be between 3,000 and 40,000 US dollars. The duration is between 24 and 72 months. The customer will then launch the credit simulation. At first, the customer will be reminded that he will not go through a banking organization to achieve his credit. The amount of credit requested is reminded to the consumer before he starts the rest of the simulation. Secondly, the borrower must enter his email address. He must then provide information on his situation, his income, his expenses, his banking identity.
After these various information, the borrower can if he wishes to subscribe to an insurance with his credit. Younited Credit thus offers two types of insurance: basic insurance and basic insurance coupled with job loss insurance. It is important to note that these insurances have a significant cost, ranging from 20 US dollars per month for the standard version to 32 US dollars per month for the full version. The borrower also has the legal option of not subscribing to insurance, which is optional for this type of credit. In this case, a new window reminding him of the risks he runs.
Once the choice of insurance has been made, different credit proposals depending on the amount that the borrower has requested, will be offered. These offers are made up of the amount of the monthly payment, the duration of the loan as well as the APR (Global Effective Annual Rate), as well as the total cost of the loan (with the distribution between interest and service charges). For a credit of 16,000 US dollars, the proposals will therefore go, for example, from 255.44 US dollars per month over 72 months with an APR of 5.50% (and a lending rate of 4.70%) to 691.54 US dollars per month for a repayment term of 24 months at an APR of 5.03% (and a lending rate of 3.54%). It is necessary at this stage to remind the borrower that although the monthly payment decreases when he borrows over the long term, the credit will cost him more money. The risk for the lender is always greater over a longer period, the APRs are less advantageous, in order to protect against possible non-payments on the part of the borrower. On the example above, in the event that the borrower chooses a repayment period of 24 months, he will be told that the total cost of his loan will be US $ 820.96 (including US $ 596.91 for interest and US $ 224 for service charges), while when it is 72 months, the credit will revert to US $ 2,695.68 (including US $ 2,391.68 in interest and US $ 304 in fees of services), all without the possible cost of optional insurance.
Younited Credit's response
The client is then given a response at the end of his request. If the answer is a pre-acceptance, the borrower has the option of printing the credit agreement. He is also reminded that it will be returned to him by post following the seizure. The credit agreement includes the various terms of the latter, ranging from the identity of the two parties to the general conditions, including the complete summary of the borrower's request (nature of the credit, its amount, its duration, the rate debtor, APR, service charges etc.). This 20-page contract must be completed and accompanied by a number of additional documents such as: the last bank statement (the last 30 days must be represented), the last income tax notice, the last payslip of the borrower, the duly signed direct debit mandate and a photocopy of an identity document. Younited Credit reminds its borrower that he must return his documents but that the shipping costs are offered to him, in the event that he has chosen to return the documents by post. It is also possible for consumers to sign their contract electronically, which speeds up the process. This process is accessible at any time, if the consumer wishes his request to be taken into account more quickly.
Acceptance of the offer
Younited Credit indicates on its site that the final answer is given to the consumer within 24 hours after receipt of the complete file. When the request is accepted, the consumer then has 15 days to validate the offer. After this period, the offer is no longer valid, the consumer will have to resume a new procedure to sign a new contract. During this 15-day period, Younited Credit can no longer reconsider its offer. Once the two parties have come to an agreement, within the legal withdrawal period which is allotted to the consumer (namely 14 days from the signing of the contract), Younited Credit undertakes to release the funds as quickly as possible. possible. The borrower must be aware of the possibility that he has to raise this withdrawal period (by making a clear written request), in order to accelerate the raising of funds. When the borrower is in possession of the funds and therefore the withdrawal period has expired, he is obliged to honor this debt by paying the repayment, as it was defined during the establishment of the credit contract. between the two parties.
Younited Credit is a unique company, since it offers the possibility to individuals to finance projects or invest money. This company is very competitive because it offers more advantageous APRs than most banks. It minimizes its costs to make it possible to make profitable the fact that it does not take margins to finance the operating costs. In addition, a company based 100% in United States, it demonstrates rapid data processing thanks to its processing over the internet. Finally, it is a company that wants to listen to the consumer and that offers actions such as the withdrawal of the first monthly payment on the 4th of the month following the fundraising, in order to allow consumers to organize themselves.