An American pastor known as Martin Luther King became famous for his slogan “I have a dream”. Thus, every human being has his own project to improve his way of life, but many of them will not succeed because of a budget allocated to this project.
While some will want to drive to work, others face the need to do some rehabilitation work in their homes or add extra equipment.
In any case, a source of financing is necessary to enable you to achieve your dreams. The best alternative is to obtain a credit without proof that will save you from waiting years of savings to raise money or sacrifice your personal budget. Know that financial organizations and banks offer services that can solve the problem of money.
A flexible source of financing
Several sources of financing are granted to individuals by banks or credit institutions depending on the type of project they are considering. These types of loans are called consumer loans and are meant to finance operations outside those related to real estate which is a little different. Whatever your needs, such as the purchase of household appliances or a car, you can use this source of financing. Nevertheless, you must have the necessary criteria to be eligible for obtaining a consumer credit.
The different features of the loan
Unlike real estate loans, you will not necessarily need to make a personal contribution or guarantee to obtain this loan. There are different forms of consumer credit such as the affected loan, personal loan and revolving credit
The form of credit may vary depending on the amount and type of design you intend to achieve. The minimum repayment period is 3 months while other loans can make you benefit for up to 5 years.
Three types of project can be financed by this form of credit, including works, the purchase of a vehicle and the acquisition of material goods. The appropriations allocated are subject to strict regulation. Indeed, they can only be used for the project that has been mentioned for obtaining it. If the project is canceled, the credit will also be repealed and conversely, if the applicant does not obtain credit, the service provider will cancel the contract.
The work loan
If your concern is to perform work in your home at home such as a repair, a renovation or the establishment of better insulation, opt for the work loan. This form of loan is perfect if you are a tenant or owner of a primary or secondary residence. With an assigned work loan, the quotes are provided by the contracting firm. You then have the obligation to use the money specifically for carrying out the declared work. The advantage of a loan work assigned is that the funds, once released will be immediately paid to the professional responsible for performing the work. Thus, your landlord can verify that the money has really been used for financing the stated service. In the absence of the agreement, you can cancel the credit by means of a cancellation of credit form stipulated in your contract.
The affected personal loan
The affected personal loan is usually requested to acquire physical assets or finance services. Since the use of money must be very clear, supporting documents are mandatory such as a purchase certificate and a substantive assignment. It is therefore a question of making the purchased good a guarantee since its foreseeable lifetime must be greater than that of the loan. You are only required to make the repayments after the property mentioned is delivered. Otherwise, the loan agreement will be canceled because the money can not be used for other purposes. This category includes student loans, travel loans, etc.
The auto loan
Like the acquisition of material goods, the purchase of a car is one of those loans that need proof. Thus, the purchase order of the car or other purchase certificate must be presented during the negotiation of the credit agreement. This will serve as proof for your banker that you will really buy a vehicle with the funds they will lend you. With regard to auto loans especially, you must specify whether you want to buy a new car or a used car. For all the cases of a car loan application, one must not forget that obtaining new auto credit is easier than the granting of used car credit. It is therefore advisable to apply for new auto financing and then buy a used car. There is also motorcycle credit and boat credit for other means of transport.
Personal loan or unallocated loan
This form of loan is a slightly more flexible choice since the use of the funds obtained is not subject to an obligation. It is granted to you without asking you to justify the exact use of the money. In short, if you do not want to provide the rationale for using the money, do not hesitate to borrow under this formula. The formalities for obtaining an unassigned personal loan are often abbreviated. It is only necessary to declare the project while having the possibility to choose the amount of the loan. For personal loan work, you have the freedom to use the money on everything you want to do or to do the work yourself. This formula allows you to avoid certain additional expenses such as the remuneration of a professional worker.
In case you already have a cash reserve, you can speed up your project with a revolving loan. That is to say, you can recover the total amount of money needed for your projects on your revolving credit. But if you need liquidity for your daily expenses or your clothing budget, this type of loan is for you. Theoretically, depending on the pace of your repayments, the revolving credit is to put within the reach of the financier a sum of money reusable. With the exception of the applied interest rates which are quite high, this form of borrowing is the most advantageous.
Operation of consumer loans
Many criteria can be a very interesting factor to facilitate obtaining a consumer credit. The first asset is the fact of being a major person whose sources of income are perpetual. This stability allows you to have an assured repayment capacity. You must not have any payment problems or financial disputes with banks or other lending institutions. Like all loan negotiations, you must provide the necessary records and make them very compelling. It is essential to follow a few steps before subscribing and file your application with your banker.
Simulate your consumer credit loan
In general, doing a credit simulation is to estimate the total cost of your loan based on the amount of money requested, the duration of the repayment and miscellaneous expenses. Visit the websites of some credit agencies and you can discover the variety of loan offer terms available in this area. A loan simulator lets you know the monthly payment, the insurance and the annual percentage rate of charge (APR). The use of the internet tool can provide a palpable time saving and the possibility to choose between several credit organizations.
Use credit comparators online
An applicant for the loan will be well advised to make some comparisons. Specific details should not be overlooked, such as expenses during reunification. The APR that depends on your profile and the form of the loan is also to be taken into account. To cover the risk it takes, the borrower can increase the interest rate applied depending on the quality of your file. We quickly realize that the cost of insurance is optional once we have compared several loan offers. However, it is essential for the lender because it guarantees the payment of the due date even if the borrower undergoes a social turnaround like unemployment or disability.
Submit the request
Now that you have an idea of what your next credit will be, start collecting all the necessary files or apply for credit via online platforms. It only takes a few clicks for your request to be processed. Once the information sheet is full, the organization will send you a response in principle.
If you choose traditional banks, go to the financial institution or bank where you found the best deal. You can then supplement the subscription folder with discretion to ensure your safety. A card mentioning the details of your profile must be completed, signed and certified on the honor. Other supporting documents will be required for loans with a higher amount. The lender can then proceed with the assessment of the repayment capacity by examining your professional and family situation, the value of your estate and your outstanding bonds and loans. For all consumer loans, the final signing of the contract commits both sides. You have the duty to repay the loan while the credit agencies have the commitment to check whether you have any incidents of acquittal with the National Bank. After that, you immediately get an answer in principle from your banker and will get a proposal for a memorandum of understanding by mail.
The requirements of the credit agreement offer must not be subject to change for a period of at least 15 days. The lender is obliged to maintain them unchanged during this period from the date of delivery of the contract. When the latter has become compliant with the applicable legal provisions, the money will be at your disposal after the final signature. Nevertheless, you will be given a 14-day regulatory deadline if you ever want to change your mind and go back on your commitments. To do this, simply detach, fill and initial the slip previously attached to the credit offer, it is designed specifically for this retraction. Holidays and Sundays are counted during these two weeks. After that, review it by registered mail to your lender with acknowledgment of receipt before the expiration of the withdrawal period.
Now, all you have to do is take the first step to achieve your goals. Feel free to use the tools offered by the internet and the trick will be played.