If the borrower is obviously committed under a loan, the bank also takes risks, in case of payment defaults in scheduled repayments. This risk ratio therefore encourages lending institutions to turn to securities aimed at reducing them, such as criteria for accepting credit and refusal that are specific to them.
The prohibitive rejection rules (and the others)
While lending institutions agree on generic criteria for credit acceptance, the majority of them apply the same rules for systematic refusals , as is the case in the presence of a minor borrower or simply filed with the Banque de France.
Other traditional grounds for refusal also include criteria related to:
- Employment: Temporary, temporary, inactive, unemployed …
- Small income: RSA or any salary below the SMIC.
- Indebtedness: a rate that is too high (except in case of redemption of credits)
It should be noted that these latter reasons may be considered by certain specialized bodies: it is not therefore a question of crippling conditions.
IMPORTANT : if you complete one of these points, ask a broker to benefit from his expert eye and allow you to better evaluate, in an appointment, your purchase project.
Specific criteria for the requested product
In a bank, the credit acceptance process is different from one product to another. On this ground, it is a question of distinguishing the consumer credits, the mortgage loan and the regroupings of credit .
For example, consider the criterion of the debt ratio . In the context of a conventional loan (consumption or real estate), it can quickly be a reason for refusal, if it is too high. On the other hand, in the context of a grouping of credits, it turns out that this rate is not interpreted in the same way, since it is one of the objectives of the approach – namely to lower the monthly payments for reduce the debt ratio.
Favored profiles in credit acceptance
Finally, based on their own experience, each bank writes its own credit acceptance criteria based on the borrower’s profile. This course of action depends on the risk-taking that is “tolerated” by the organization and the expected level of profitability . For example, some institutions will focus on volume to ensure profitability – that is, they will broaden the entry criteria and apply higher rates.
Other organizations will clearly move towards a specific clientele , developing offers oriented to seduce them. Like the “young active” solutions deployed, such as the “first acquisition” loan for 18-29 year olds.
Beyond the most obvious and generic criteria, the broker knows his partners perfectly and can save you time by focusing his actions directly on the right contacts.