You have certainly experienced it, even when you ask your bank advisor the possibility of taking out a personal loan, that is to say without any particular affectation, the latter always questions you about the purpose of your loan. And, even though these loans do not require any proof, at least in the texts, you realize that your banker still seeks to know everything about your life …
The big advantage of revolving credits is that you have nothing to justify when you use the money. Warning! This does not mean that you can get this loan without justifying an income. We must not confuse justifications and justification. Explanations …
The justifications to be paid to the constitution of the file.
At first, he will make the request for the opening of your revolving credit. And for this, it is your bank advisor who will set the amount of the maximum envelope that you can benefit. If, in fact, he will not necessarily ask you your last three payslips, it’s simply because he has them in front of him, on a daily basis, while looking at the screen of his computer. He already knows how much you earn. But it remains that the ceiling of the envelope is determined by the conditions of resources.
The banker simulates a maximum loan, over a period determined by the amounts borrowed and the new conditions set by the Lagarde Laws (36 months for amounts less than $ 3,000, and 60 months for higher amounts). From that moment, and depending on the analysis of your bank accounts, he can get your debt ratio, or repayment capacity. These are the determinants of the borrowing limits.
No evidence to provide for use.
But where he can not ask you is when you decide to use the money you have been allocated. No proof can be required, whether you choose to pay a week’s vacation, or you are forced to repair your vehicle. It is in this that the revolving credit is “without justification”. An auto loan requires you to provide a gray card, a home loan can not be released without a deed signature, but a revolving credit can be used as we see fit.
Of course, the cases are different depending on whether you are applying for this loan at your bank or at a finance company. If your banker has been following you for a long time, you remain a complete stranger to the finance company. And, although you have your accounts at CreditCole or LCL, it does not mean that Financecall (also belonging to the same group as the two previous banks) will have registered you in its databases.
So do not be surprised if you are asked to justify your income and your current expenses at the creation of the envelope of the money reserve. But once this step is over, do whatever you want with your revolving credit, without having to refer to anyone.