Credit without proof is a credit agreement, which does not require the borrower to provide information on the use of funds. The borrower can therefore use the allocated sum absolutely as he wishes, without the institution asking him any questions.
On the other hand, beware, credit without proof is in no case a loan contract that you are granted without having to prove your identity, your place of residence, your professional situation or the amount of your income. This information is mandatory since the law requires institutions to check the creditworthiness of the borrower.
Financial planner helping a couple with their banking accounts
What are the characteristics of a consumer credit without proof
Unlike other types of allocated consumer credit, such as car credit, credit without proof is unrestricted credit. The borrower can therefore use the sums obtained completely freely.
Credit without proof is generally granted for an amount lower than other consumer credits. While the maximum amount of this type of loan is set at $ 75,000, a credit without proof rarely exceeds $ 21,300. In the same way its duration is usually shorter, it rarely exceeds more than 5 years to 7 years.
How can you use a consumer credit without proof?
Consumer credit without proof can be used completely freely and the sums allocated can therefore be used for all situations that are not provided for by other types of credit.
- Finance your vacation
- Financing your marriage
- Financing your honeymoon
- Finance the purchase of capital equipment
- Facing an unforeseen need for cash
Advantages and disadvantages of unrestricted consumer credit
Like each type of contract, the unrestricted personal loan has certain advantages and disadvantages
- The Benefits of Unrestricted Personal Loan
Unrestricted consumer credit makes it possible to preserve his private life, since, as long as he respects the terms of the contract, he has no supporting documents to provide. In addition, since the credit is not linked to a particular purchase or transaction, it can finance 100% of the property. Finally, this type of personal loan offers great flexibility, the borrower has indeed all the attitude to choose the duration and amount of repayments.
- The disadvantages of an unrestricted loan
Restricted credits offer certain attractive advantages which are not accessible with a personal loan without proof. When purchasing a property, an assigned credit offers, for example, additional security and guarantee, since in the event of non-compliance, it is possible to break the sale and cancel the credit. Unrestricted credit does not offer the same guarantees.
The supporting documents and conditions to be fulfilled
Most credit agencies will ask you to be able to prove that you have a steady job, a regular income and a healthy financial situation. You will therefore be asked to have good repayment capacities with a debt ratio that does not exceed 33%. The lender can therefore ask you for any type of documentary evidence which will enable it to assess your financial situation.