The conditions for obtaining a mortgage or a consumer credit are not so far apart. The way to apply for credit is different. But the decision to accept or refuse works on the same principle. It is mainly the debt ratio that prevails. So let’s see how to get credit, or rather give yourself the best chance of getting an immediate deal.
Each credit institution, bank or lending institution has its own acceptance conditions. They are also different depending on whether it is a credit without proof of use or a justified loan, such as car credit.
It is therefore not possible to hold a unanimous truth for all requests or concerning all credit specialists. However, as we process hundreds of files every day, we have good visibility on the subject. Our credit comparator also allows us to obtain an immediate response, by questioning several organizations at the same time.
Conditions for obtaining a credit: the law
In France, whether for an online credit application or in an agency with an advisor, a banking establishment has no obligation to grant credit. There is no right to credit. The lending organization is also not required to justify a refusal, unless the refusal comes from an examination of its internal file. This is the principle of freedom of contractualization. Fortunately we know a little about the conditions for obtaining a credit. Let’s review the main ones.
In the event of a problem of repayment of a credit or of non-payment on his bank account, we may be the subject of a bank statement. There are two types of filing, the FICP and the FCC. The FICP is the Personal Credit Credits Incident File. The FCC is the Central Check File which brings together people who are prohibited from making checks or bank cards.
To get credit, you don’t have to be on file. All those who claim the opposite are charlatans. Never trust a loan without checking the FICP and FCC. This is also almost one of the only reasons that credit agencies communicate to motivate a loan refused. If this is the case and we do not understand why we are on file, we must get closer to the Banque de France as soon as possible.
The debt ratio
There is no legal constraint giving a maximum debt ratio to refuse a loan. The debt ratio is therefore a condition for obtaining credit, but it is at the free discretion of each credit organization. The choice of a credit amount corresponding to a bearable repayment period favors an agreement in principle.
Age is a criterion for credit decision: you must be of legal age.
There are no conditions for obtaining a nationality credit. You can get credit by being a foreigner. The important thing is to reside in France.
What are the conditions for obtaining a credit?
Now that we have seen the main principles for having access to credit, let’s move on to the conditions for obtaining a loan. These conditions come from the statistical evaluation that we note on the files of our customers. They are given for information only and do not imply any definitive certainty as to obtaining an agreement. The main conditions for obtaining a credit are:
- the employment contract : this is an essential factor. No tongue-in-cheek: getting credit without a permanent contract or without a job is almost impossible, unless the co-borrower is on a permanent contract.
- Age : it is very complicated to obtain credit for young people under 25, even for consumer credit. And the situation remains complicated until 30 years. In the same way, after 70 years, we notice a drop in agreements, which collapse after 75 years.
- The debt ratio : to obtain a mortgage, the standard is 33% but the maximum limit is rather around 40% for large incomes. In consumer credit, this rate can go up to 50% for good income, knowing that the rent generally comes into the debt ratio.
- Income : beyond the fact that you have to earn at least 1000 USD per month, income is not a condition as such. It is rather the rest to live per person that counts. Remainder of living per person = (household income – household expenses) / number of people at home. The condition for obtaining a credit is generally that the remainder to live per person is more than 200 USD.
- Seniority : for bankers, seniority in employment, in housing and in marital status is essential. For them, the less there are changes the less the chances that there will be repayment problems. In the case of a request for unemployed credit (pension, handicap or retirement), the borrower must justify sufficient income but above all stable over time to claim to obtain a favorable agreement.
These conditions for obtaining credit are not the only ones, but they are decisive.
All these criteria are combined together to calculate a customer score. This score is a score given to the credit file. If this score is not good and does not reach the sufficient level, the credit will not be accepted, even if the other conditions to obtain the credit are met.
Get a loan at the best rate
Getting credit is a must when you need money. But you also have to try to get the best rate. Our comparator precisely guarantees two important things in a search for the best credit:
- A classification of the lowest APR rates
- Up to three immediate responses from the best organizations (no obligation)
How does our comparator work?
Our credit form is able to question the best organizations in real time, in order to increase the chances of receiving a favorable opinion. Once their information has been entered, the three online credit specialists offering the best rates will respond immediately.
A system to avoid being confronted with a refused loan and re-entering several identical forms on several separate sites, without having any notion of the rates charged for his project.
Conditions for obtaining consumer credit
The conditions for obtaining a consumer loan differ slightly depending on the type of loan. Let’s review the loan solutions.
The personal loan is a credit without proof of use of money. To get a personal loan as cheaply as possible, it’s quite simple because you have to choose between credit agencies and banks. However, the banks have not really developed in this sector. This is also why they have their subsidiaries specialized in consumer credit. Cetelem for BNP Paribas, Sofinco for Crédit Agricole, Cofidis for Crédit Mutuel. Organizations are able to exit a credit contract more quickly, but above all to make offers at more attractive rates on average.
The conditions for obtaining a car loan are a little different. In any case for the new car loan. In this case, it is necessary to take into account the credit of the dealers. For second-hand car credit, you have to do the same as for a personal loan because second-hand credit offered by garages is generally expensive -> see our article Second-hand car credit.
To get a cheap new car loan, it is usually best to first get the best deal from specialists on the internet. You then only have to go to a concession to negotiate. But it must be done in this order because the credit organizations hardly ever negotiate. While auto salespeople do this but never offer a good rate right off the bat.
To get cheap work credit, it’s a bit like car loan. With the difference that it is not the dealer but the craftsman who can also offer a loan. The process will therefore be the same to obtain a cheap work loan. To find out all about this type of financing, consult our loan works page.
Revolving credit is a small credit, the amount of which rarely exceeds 3000 USD. This small loan provides a reserve of money, which can be used to obtain an immediate transfer. This loan is on average more easily accepted than other types of consumer credit. It is also more expensive: its rates regularly reach the threshold of the rate of wear.
Get the cheapest mortgage possible
As we have seen, the conditions for obtaining a mortgage are almost the same as for obtaining a conventional consumer loan. What will fundamentally change is that the debt ratio may be much higher for a mortgage. This is also why the duration of credit is much longer.
But to get the best mortgage rates, there are other factors to consider. And especially :
- The type of purchase: new, old, work, rental investment, etc.
- The type of financing: fixed or variable rate, contribution, deposit, etc.
- Investment location: district, city, region
These reasons mean that our real estate credit comparator also includes real estate brokers. This allows to exchange and discuss concretely his project. To obtain a mortgage at the best rate, we (or our partners) directly call each customer eligible for the best offers locally. Thus, we make sure we understand the project well and can support it throughout the process.