Several forms of consumer credit exist. Among them, there is credit without proof. It allows the borrower to be more free on the use he can make of this money. Be careful, however, certain conditions are put forward and precautions must be observed.
A loan without proof for more freedoms
Sooner or later, everyone needs more money than usual. To respond, either individuals draw on their savings, ask relatives or make a loan from an outside organization.
When signing a mortgage or a car loan, the expense is clearly known. To avoid specifying the destination of a loan, there are credit without justification.
A credit without supporting document differs from a loan affected by the absence of information on the object of the expenditure. The individual is simply free to spend the amount obtained towards what he wants without informing the lender. It is therefore a solution for people who prefer to remain discreet about their project.
What are the characteristics of a credit without proof?
Like the other credits, this one is limited in time but also by the sum. Such a loan is indeed to be repaid for a few months or years (generally no more than 6 years). Regarding the amount, it often does not exceed 20,000 dollars even if the law allows up to 75,000 dollars.
The monthly payments to be reimbursed are established according to the interest rate fixed at the signing. It runs until the end of the refund without possible modification. Not all organizations offer the same rates. It is therefore essential to compare offers to find the cheapest credit.
The amount to be reimbursed each month determines the total duration of reimbursement. It can be requested by the borrower himself.
Conditions to be respected
Lending organizations do not make money readily available. Several conditions must be met in order to have access to this type of liquidity. It is necessary to form a file summarizing your various information in order to show the decision-makers if you are able to repay the requested credit.
- So you have to justify a regular salary, a job.
- Avoid being already subject to the repayment of one or other loans.
- Justify a healthy banking profile, namely to be as little as possible in the red on your account. This includes the provision of your latest statements.
Also pay attention to organizations that do not ask you for these items. As the law requires, the reliability of the loan can raise questions …
What expenses are made with this type of loan?
A loan without proof can be requested to finance different types of projects. Most of the time borrowers use it for a trip, a wedding, to furnish their interior, to do work, to pay for studies or simply to have fun. A pleasure which however has a cost since the applicant undertakes to repay his credit each month. This is therefore not to be taken lightly and must be carried out if good financial health is justifiable.
As a reminder, the debt capacity is set at a maximum of 33% on all of the borrower’s income. Sufficient living remains must allow decent living. Especially that with the monthly payments of the credit it is necessary to add the expenses related to food, housing or taxes.