The credit or loan is generally divided into two broad categories: consumer credit and mortgage credit. The first category is the one that will interest us. This type of credit is less cumbersome and requires a less thorough study than that conducted for home loans. In this sense, the answer given for the demand for consumer credit is much faster. These credits are intended only for individuals. They make it possible to finance a cash flow requirement intended for the purchase of a good or consumer service. It will be for example a car or a good appliance.
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Traditionally, loans (for consumption and real estate) were granted by physical banks, which had moved up the street. In recent years, with the development of the Internet, lending organizations specializing in consumer credit have largely developed to compete in a very important way these banks. At the same time, household computer and internet access equipment have become more widespread and the sector is reaching maturity with nearly 90% of households equipped.
Thus, thanks to the Internet, consumers will be able to view Payday Now and apply for an instant payday loan very quickly, at any time of the day and week. This is a time saving for some people who can not visit the banks during their business hours, for example, because of their job. With the emergence of these websites, their research is facilitated. In just a few clicks, the consumer can learn about the various practices that have been made, about the current cost of loans and about his commitment if he decides to take out a loan.
Internet sites have specialized in the comparison of consumer credit.
To save even more time, the consumer can go directly to one of these sites. He will only have to indicate once his need for financing and his will as regards the monthly repayments (amount, duration). Following its seizure, the comparator will propose to him a selection of sites proposing offers of credits him corresponding. The characteristics of the different offers will be repeated to allow the individual to make his choice and to go to the specialized site.
On these sites, whether the consumer goes through a comparator or not, he will get a response in principle very quickly. This response is provided by the site once the full credit application. For this, the consumer must first specify his request. It will indicate the origin of its need for cash (auto, works, etc.), the number of funds desired and the repayment period (or the amount of the monthly payments). Once this information is specified, he will get an offer from the lending institution. At this stage, the consumer is not committed to this organization. If this offer suits him, he will have to fill in a fairly complete form. He will be asked for his personal situation (the composition of his home), his professional situation (employment, fixed-term contract, permanent contract, etc.) and his financial situation (income, expenses, other credits already in progress, etc.). This form is tedious but still very fast since all of this data is normally already known to the credit applicant.
Answer of principle
When this information is complete, the website will provide what is called a principled answer. This answer is thus delivered to the applicant, at the end of his seizure, it is an immediate answer. This will be either negative, positive or “pending”. These last two answers are said to be in principle because they are subordinated to the sending of all the supporting documents allowing to prove the situation of the applicant as it was described during the filling of the form. These documents are composed of the identity document of the applicant, his employment contract, the last payslips and possibly his last statements of account.
Once the file is complete, it must be sent to the credit agency. To save time, sending can be done numerically. If this is not possible, the file will be sent by post (thus adding a few days to the processing of the request). On receipt of the latter, within a time-varying from 24 h to 36 h, all parts will be checked and must correspond to what has been indicated by the applicant. If everything is in conformity the positive principle answer will turn into a definitive answer. Thus, the credit institution will make its final proposal to the applicant.
If the documents sent do not correspond to the applicant’s entry which had allowed a positive policy response to the initial request, a refusal from the specialized body will be opposed.
It should be noted that at this stage the applicant is not engaged vis-à-vis the credit institution. Indeed, only the acceptance of the final proposal commits the borrower. Until then, no contract has been signed between the two parties. The applicant is, therefore, free to make different requests to different institutions. Thus, it will be able to compare the final offers which are much more detailed and complete than the proposals brought by their Internet site during their initial seizure.
The offer of the organization
Once the proposals are made, the applicant is free to accept them or not. However, he must respect a certain delay. Indeed, like the quotes in other sectors of consumption, this proposal is only valid for a certain time. Thus, credit institutions undertake to maintain this proposal for a minimum of 15 calendar days. After this period, they are free to no longer maintain it and for example to increase the interest rate that was originally proposed.
It is therefore recommended that the consumer credit applicant make a decision on the proposal before the expiry of this period. If he accepts the proposal made by the specialized body, he can retract for 14 days. This withdrawal period is a period set by law, allowing the borrower a period of reflection and allowing him to withdraw in the event of a change of mind. This period may nevertheless be canceled. However, this must be done very explicitly and at the request of the borrower. This request must be in writing and the individual must be reminded of his / her commitment to the loan organization.
Indeed, this type of credit is generally taken lightly by consumers who do not necessarily think to be engaged or even are not aware of the impact that could be the failure to repay the monthly repayments. It should be remembered that all types of credit commit the borrower to repay it. The loss of a job, the change in the composition of the home (birth, marriage, divorce, etc.) does not suspend the refund. During the eventual death of the borrower the debt is not canceled and it will be passed on to the heirs.
It is very advisable to take out insurance to deal with this type of situation. These insurances are optional in the context of consumer credits but mandatory in the case of real estate loans. These insurances will make it possible to take care of the remaining monthly payments if one of the situations envisaged in the contract occurs. It could be the loss of a job, the illness or the death of the borrower.
When the withdrawal period is foreclosed or canceled, the funds will be transferred to the borrower’s bank account. Depending on the credit institution, the delay can be between 24 hours and 72 hours. The funds can then be used by the borrower as agreed at the time of the subscription. The funds can be sent directly to the seller of the consumer good at the origin of the financing need. This is, for example, the auto-assigned loan. In this context, the delivery of funds is directly suspended upon delivery of the vehicle. Thus, funds do not transit through the buyer’s bank account but are passed directly to the seller of the property. The buyer will then have to reimburse the credit institution that financed the purchase.
The repayment of consumption credits is made according to the monthly payments provided at the conclusion of the loan agreement. These monthly payments are fixed by their amount, frequency and duration over time. The repayment can begin as soon as the funds are delivered or after a few months in order to give the borrower time to dispose of them. He will have to respect the repayment schedule. Under certain conditions, again provided for in the contract, he can anticipate some or all of his monthly payments. Fees may be incurred during this process. They must nevertheless be made known to the borrower before the subscription of the contract.
The speed of consumer credit then has several aspects
At first, the Internet has allowed for speed in research and online loan applications. Lending organizations have developed websites that provide immediate answers. Finally, the management of applications is also very fast by these institutions, allowing delivery of funds in a few days. These sites have been able to adapt to a new demand where the urgency is sometimes greater than the support and advice that should be given in these situations. top