If the borrower is obviously engaged in the framework of a loan, the bank also takes risks, in the event of payment defaults in the repayments provided for in the schedule.
This risk ratio, therefore, encourages lending institutions to turn to securities aimed at reducing them, such as their own credit acceptance and refusal criteria …
The prohibitive refusal rules (and the others)
If the lending institutions agree on generic criteria for accepting credit, the majority of them apply the same rules for systematic refusals, as is the case in the presence of a minor borrower or simply filed with the Bank of Good Finance.
Among the other classic grounds for refusal are also the criteria related to:
- Employment: CDD, temporary, inactive, unemployed …
- Small income: RSA or any salary below the minimum wage.
- Debt: too high a rate (except in the case of loan repurchase)
Note that these latter reasons can be considered by certain specialized organizations: they are therefore not prohibitive conditions.
IMPORTANT: if you fulfill one of these points, ask a broker to benefit from his expert eye and allow you to better assess, in an appointment, your purchase plan.
Specific criteria for the product requested
Within a bank, the process of accepting credit differs from one product to another. In this area, it is a question of distinguishing consumer loans, home loans, and credit groupings.
For example, consider the criterion of the debt ratio. In the context of a conventional loan (for consumption or real estate), it can quickly constitute a reason for refusal, if it is too high. On the other hand, in the context of a grouping of credits, it turns out that this rate is not interpreted in the same way, since it is one of the objectives of the approach – namely to lower the monthly payments reduce the debt ratio.
Favored profiles in accepting credit
Finally, based on their own experience, each bank draws up its own credit acceptance criteria according to the profile of the borrower. This course of action depends on the risk-taking “tolerated” by the organization and the level of profitability expected. For example, some establishments will focus on volume to ensure profitability – in other words, they will expand entry criteria and apply higher rates.
Other organizations will clearly orient themselves towards a specific clientele, by developing offers aimed at attracting them. Like the “young active” solutions deployed by Good Credit, such as the “first acquisition” loan for 18-29-year-olds.
Beyond the most obvious and generic criteria, the broker knows his partners perfectly and can save you time by focusing his actions directly on the right people.
But the advantages of a broker do not stop at their network, take a few minutes to discover the extent of their know-how, which you could benefit from …