Banks use the notion of certainty, or, in other words, risk, to assign credit. When they lend money, they ask for information about the applicant for credit, not to lend money to someone who can not repay. How to reduce the risks of a credit?
How to be sure of being able to repay a credit?
Before applying for a credit, you must be sure to repay it. But how to be sure? What are the questions to ask yourself before contacting your bank for a credit? What are the dangers of credit?
A credit applicant, before contacting the bank or a credit institution, must assess their ability to repay the credit. This is sometimes a difficult exercise to do, too many people think they do not have difficulties to repay, and find themselves in complicated situations. The over- indebtedness is very present in France, and the people who found themselves in this situation certainly did not think that they would be in this unfortunate posture one day.
credit scoring (article conolia), thus determining the loan risks. But even with all this data, the banker can not evaluate some criteria that can make everything switch. Sometimes the credit scoring may have difficulty accurately assessing the risk represented by the applicant, especially when the request is made to the “maximum” of its possibilities. It is then up to the banker to appreciate, with his experience, the possibility of credit.
During the interview with the banker for a credit application, he evaluates, on a personal level, any risks that may not be apparent on the papers or on the computers. This is where everything is played out. If you ask for a credit without room for maneuver, without being able to save, it is better to be sure of being able to pay the monthly payment! The banker, on the basis of personal criteria, will evaluate the possible risks that a machine can not see. These are the risks that a person should take into account, even more than those that can be calculated by simply simulating on the internet. And what are these risks? These are the ” accidents of life “, the main culprits of the passive over-indebtedness in France. On their own, they are responsible each year for 75% of over-indebtedness situations in France.
to build an over-indebtedness file, which I have already discussed at length in a previous article. credit possibilities for an unemployed person.
The problem of the purely “CDI” reasoning of credit organizations and banks is that they do not take into account personal factors, which can make someone who connects fixed-term contracts a person more solvent than a person. on CDI. But only the objective, paper-based criteria really play a role in this tough credit world. The risk of unemployment, before being evaluated by a banker, must be evaluated by the applicant himself, asking the right questions.
- Is my company in danger of filing for bankruptcy?
- Can I be kicked out?
- Can I resign?
These questions do not necessarily have an easy answer. An employee is not necessarily aware of the health of his company. But if a doubt remains about his professional situation, something that is not necessarily seen on paper, it may be more prudent not to embark on a credit for the next few years! Sometimes the loss of the job can be very difficult to live, and even more if you have bills to pay. No bank has the power to know the status of your employment situation, and indeed, a permanent contract does not mean that you can not lose your job overnight. We must understand the banker, who has more confidence in a person who has the same job for 10 years, than in someone who connects the CDD or the jobs in acting, never really knowing how much it will touch next year, and so if he really will have the means to repay his credit.
To be sure of repaying your credit, it is best to be sure that our sources of income are stable throughout the repayment period.
It is important not to go into debt to the maximum of its capacity, and to leave room for maneuver in case of a hard blow. It must be understood that one must be able to save even a minimum. Bankers love people who save! In general, the credits to be repaid must not exceed one-third of the revenues, it is a rule of gold well known to credit organizations and banks. An employee who earns 1000 euros a month should not repay more than 333 euros each month, above he is in danger.
If there is a risk of job loss, if we have credits in progress and we are therefore likely to exceed the one-third mark of the income to be repaid monthly, it is best to consider a repurchase of credit, only viable solution to not find yourself overnight in trouble. This is even the first thing to do if you think you can not find work quickly during your period of unemployment.
Credit and risk of divorce
The extraordinary negative impact of a divorce is too often overlooked. We are often told about children, the emotional tears a divorce provokes, but beyond these sentimental considerations, there are also financial considerations. 15% of over-indebtedness cases were caused by divorces or separations! More generally, family difficulties (including deaths for example) are responsible each year for about 23% of cases. We know that when you get married, you do not think of getting divorced, but every year, on three marriages, there is a divorce. This proportion is gigantic, and the trend is only getting stronger.
These painful situations very often cause serious financial difficulties to one of the spouses. The woman who is without resources, for example, or the husband who has to pay very high alimony. The risk of divorce is therefore very present, and is not necessarily taken into account by the banker, who even sees the married couple as being more “safe” against the debts and credits to be repaid.
The question that must be asked, before making a long-term credit: do you like your spouse? Could you live with him all the duration of the credit? It’s a strange question when we talk about credit, but essential! Others choose a simpler solution, having a marriage contract protecting mutual interests. But housewives married under the separation of property regime can find themselves in extremely complex situations: divorced, destitute and often ill-prepared for the world of work, their standard of living drops drastically.
The safest way to make a credit is to have a strong couple or simply to be single! A married couple has more facilities to obtain a credit, it is a fact: if one spouse is unemployed, the other can continue to pay the credit…. But beware in case of separation!
Credit and other “unforeseen” expenses
The unexpected can not of course be expected, that makes sense. But sometimes, what is called “unforeseen” is not necessarily one. For example, some over-indebtedness cases are caused by children’s studies. Parents go into debt so that they can pay for the children’s education. Can we really say that this is an unforeseen expense?
Savings are fundamental to guard against all situations. To live in tense flow, that is always on the water, always finishing the month in the red is not a possible solution, let alone when one wants to make a credit. Without throwing stones at people who do, is it really reasonable to give credit when you do not earn more than the SMIC? It would be wiser and prudent to save money to buy what you want, rather than take a credit. I do not talk about real estate credit, very different from other credits: the mortgage is a kind of savings, the purchased apartment continues to have value once the credit paid, which is not the case sofa or flat screen.
conolia’s advice is based on observations observed on people with high levels of debt. A lot of common sense, but above all a great ability to anticipate the future and guard against hard knocks. You do not have to expect the worst at all times, which prevents you from living, but at least a lifeline, a safety margin in the event of an accident of life.
The profile of the over-indebted future, who does not know it yet:
- Troubles in the couple, with many arguments
- At work, less overtime, fewer customers
- Children soon to be of age
These signs should alert the person in the description: do not make credit for now. Yet, on paper, we have a married person on permanent contracts with children. The banker lends his eyes closed. But in practice, it is an extremely risky situation. And no, to make a credit will not solve the problems of couple, it is not necessary to make leap forward!