A Consumer Credit is a type of loan offered by financial institutions that gives you the freedom to use silver in whatever you need. For example, to remodel your home or renovate the car. But do you know what are the requirements to obtain a consumer credit ? We explain it to you below.
A consumer credit is a short or medium term loan that is granted to obtain freely available money. It is normally used to finance personal needs such as the purchase of consumer goods or payment of services.
What should I know before requesting a consumer credit?
According to records of the Sernac, there are overwhelming differences between consumer loans with the same characteristics of different financial institutions, be they banks, credit unions, financial cooperatives or compensation funds, these differences can reach up to 400%. That is why it is advisable to consider the following aspects before requesting a consumer credit:
- Start your search by comparing among the consumer credits of various entities. The following post may be interesting for this: Better consumer credits.
- To solve your doubts you can also use the online simulators available to some of the financial institutions.
- Another important aspect to consider is credit rates , since the lower they are, the lower the amount that is paid. Thus, it is necessary to distinguish between:
- Annual rate: corresponds to the amount borrowed and consists of the total cost of the loan expressed as a percentage, taking into account commissions and administrative expenses, among others.
- Nominal interest rate: applies only in the case of not establishing an annual rate, with its corresponding expenses.
- It is also important to take into account the time that is considered to pay the credit and the periodicity of the payment (weekly, monthly, bimonthly, etc.), since it will also depend on the number of installments to pay.
- Finally, you should also consider the constitution of guarantees and what are the penalties and other expenses that may be applied depending on the contract.
What are the requirements to obtain a consumer credit?
The establishment of requirements for consumer loans generally depends on the commercial policy of each bank, since each of them must evaluate its customers in order to operate with them. Therefore, there will be entities that may require a lower level of income or indebtedness than another bank is willing to accept, in order to grant them a loan.
In general terms, banks require a series of requirements from the person requesting a consumer credit in order to determine that they will have sufficient income in the future to pay the fees of the requested credit. Among the most common requirements are the following:
- For dependent workers, a minimum liquid income and a copy of their last salary settlements are usually required.
- For independent workers, income declarations and / or fee reports that prove their income.
- Be the right age for signing contracts.
- Have adequate financial and commercial background.
- Copy of the employment contract, to prove seniority.
- Have a Chilean nationality or be a foreigner with a permanent residence.
- Valid identity card.
- Personal health statement, in the event that insurance contracting is included.
- Declaration of assets and liabilities with the documentation proving it.
- Each bank may also require additional requirements.
Additionally, on some occasions the bank may request the client to present a guarantee or joint debtor, as a way of obtaining a second source of income in the event that the principal debtor does not fulfill his obligation to pay the credit. This requirement forms for the institution’s commercial policies and aims to reduce the bank’s risk due to customer default.
What are the main stages of a consumer credit?
Once a consumer credit to be requested has been compared and chosen, and the conditions that it requires are met, the steps to request a consumer credit are as follows:
- Quotation of the credit conditions, which will be valid for no less than seven business days.
- Credit application:
- Evaluation of customer payment capacity.
- Declaration of health of the applicant for the contracting of the relief insurance, if applicable.
- Credit approval:
- Signature of the formal document that obliges the client to pay the credit or promissory note.
- Money delivery
As you can see, the requirements to obtain a consumer credit are quite simple to meet. Always remember to read, inform yourself and compare everything you can before choosing your credit, so that you choose the one that best suits your needs.