Personal credit is also called personal loan. It is in the form of a restricted credit, but without proof of purchase.
Personal credit is one of 3 types of consumer credit with:
the revolving credit: which like the personal credit, is not allocated to the purchase of a specific property.
the credit allocated: which is intended for the purchase of a specific property (car, works …).
This type of credit is made to finance your current expenses
The characteristic of the personal credit is that it is not allocated to the purchase of a specific property: you do not have any proof of purchase to provide. Just call 1800 cash now to get the amount you need
This is its main difference with the credit allocated.
Otherwise, its operation remains very classic:
You determine with the lender the amount of the credit, the duration and the amount of the monthly installments.
You pay monthly monthly payments defined by contract until the end of the credit.
The rate (TEG) varies from 2.5 to 10% depending on the duration, the amount and the lender.
The application fee can reach 1% of the credit but is capped at 75 € and can be included from a certain amount.
You can take credit insurance in case of problems (unemployment, work stoppage, death).
Personal credit is more readily negotiable than an assigned credit (rate, administration fee, insurance), but it is generally higher than a restricted credit, but less than a revolving credit.
Caution: Like any unallocated credit, if the item you are purchasing is defective or undelivered, you must continue to repay.
Enhanced consumer safety
Faced with the problem of over-indebtedness, the State has taken steps to increase the responsibilities and obligations of creditors.
Thus, the application of the consumer credit reform, since May 1, 2011, now obliges credit agencies to verify the creditworthiness of their client before any personal credit underwriting. For it :
The lender must consult the FCIP which identifies incidents of credit repayments.
The lender and the borrower must jointly complete a fact sheet that will help measure the creditworthiness of the borrower.
Credit sellers who complete this form must be trained.
For more than € 3,000 of borrowing, additional proofs will be requested from the borrower: proof of income, domicile, etc.
Enjoy legal protection for your personal credit
If your personal credit is less than € 75,000, it is likely that it falls within the legal definition of consumer credit and therefore enjoys legal protection under the Scrivener law.
If the credit is more than € 75,000, it is not legally a consumer credit, so you do not benefit from the protection of the Scrivener law.
In this case, read the clauses of the contract:
Check the TEG (the actual rate of your credit).
Check the retraction, early repayment clauses.