Revolving credit without supporting documents
You have certainly experienced it, even when you ask your bank advisor for the possibility of taking out a personal loan, that is to say without any particular assignment, the latter always asks you about the purpose of your loan. And, even though these loans do not require any supporting documents, at least in the texts, you realize that your banker is still trying to find out everything about your life ...
The big advantage of revolving credits is that you have nothing to justify when using the amounts. Warning ! It does not mean that you can get this loan without proof of income. You should not confuse supporting documents with justification. Explanations ...
The supporting documents to be sent when the file is put together.
First, you must apply for the opening of your revolving credit . And for this, it is your bank advisor who will set the amount of the maximum envelope from which you can benefit. If, in fact, he will not necessarily ask you for your last three payslips, it is simply because he has them in front of him, on a daily basis, while looking at his computer screen. He already knows how much you earn. But the fact remains that the envelope ceiling is determined by the means test.
The banker simulates a maximum loan, over a period determined by the sums borrowed and the new conditions set by the Lagarde laws (36 months for sums less than $ 3,000, and 60 months for higher amounts). From then on, and depending on the analysis of your bank accounts, it can obtain your debt ratio, or repayment capacity. These are the determinants of the borrowing limits.
No supporting documents to provide for use.
But where he will not be able to ask you anything, it is the moment when you will decide to use the sums which have been allocated to you. No proof can be requested, whether you choose to pay yourself a week's vacation, or whether you are forced to repair your vehicle. This is why revolving credit is "without proof". An auto loan requires you to provide a car registration document, a mortgage cannot be released without a deed, but a revolving credit can be used as we see fit.
Of course, the cases are different depending on whether you apply for this loan from your bank or from a finance company. If your banker has been following you for a long time, you are still a complete stranger to the finance company. And, although you have your accounts at Crédit Agricole or at LCL , it does not mean that Paydaynow (also belonging to the same group as the two previous banks) will have registered you in its databases.
So do not be surprised if you are asked to justify your current income and expenses when establishing the file for creating the envelope of the money reserve. But once that is over, do whatever you want with your revolving credit, without having to refer it to anyone.