Before granting you a personal loan the credit institutions check that you fulfill their acceptance conditions. The most common acceptance condition is your repayment capabilities. To do this, you must demonstrate using various documents and supporting documents that you have the repayment capabilities necessary to pay your monthly payments serenely.
The first step is to calculate your disposable income: wages, retirement, rental rent, dividends from your company, compensatory allowance, unemployment benefits, allowances, etc. You can thus fulfill the conditions of acceptance, even if you are self-employed or looking for a job. Typically, the credit agency asks for more supporting documentation to verify that your repayment capabilities will be stable over the long term.
Your personal expenses
In a second step, your expenses are deducted from your disposable income in order to obtain your monthly repayment capacities. These capabilities must be sufficient to pay the monthly payments of your personal loan while allowing you to cope with the expenses and small unforeseen of everyday life.
As “expenses”, it takes into account your rent or monthly payments of your mortgage, your energy costs (EDF, etc.), taxes, maintenance, etc. To calculate them, your personal situation is also taken into account: family status, number of children, status of owner or tenant, etc.
Once the data is reconciled, credit agencies will know your repayment capabilities accurately and will be able to assess whether or not your file matches their terms of acceptance. The conditions for obtaining a mortgage or consumer credit are not so far apart. It is mainly the debt ratio that would make a difference. We will therefore review the conditions to obtain credit at the best rate.