Auto credit: what are the most frequent reasons for refusal?

When an individual requests a car credit, or any other type of loan, the financial establishment requested is free to accept or not.In addition to the fact that there is no "right to credit", the lending establishment is not required to justify its refusal.

Registration on a Banque de France file

If an advisor refuses to give the reason why a car credit has not been granted to his applicant, the latter can try to find the sources of this refusal himself.The most obvious to identify is its possible registration on the national file of incidents for reimbursement of credits to individuals (FICP).Managed by the Banque de France, the FICP lists the names of persons in default of their lender, and retains its registration for five years under certain conditions.

Although registration for the FICP does not have the legal consequence a credit ban, financial institutions, who consult this file before making their decision, in principle prohibit a car loan, or anyAnother type of loan, to a person listed at the FICP, but also to the central check file (FCC).If being registered with the FCC is supposed only to prevent the use of the checkbook, it is also a guarantee of poor reputation with a financial institution which, in practice, refuses to lend money to all the persons fell by the bank ofFrance, for fear of not being completely reimbursed.In addition, individuals formerly files must avoid requesting an auto credit in an establishment with which they have met payment incidents, because it has the right to keep its customer files up to five years after the end of the last accountdetained.

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A file not strong enough at the financial level

The other major reason for refusal by financial institutions, who wish above all to avoid bad payers, is the lack of solvency of the applicant.In principle, banks and other lenders do not give any credit to people with a debt rate exceeding 33% or 35% depending on the establishments.Each individual can also calculate his own thanks to the simulator made available by the official website of the French administration.

This level of debt is not always a sine qua no condition, because other criteria are taking into account for the financial institution when giving its decision.The lack of personal contribution, a professional situation deemed unstable (for example the absence of a permanent contract), an overall level of revenue insufficient, or excessive outstanding credits are all reasons that can be crippling.Finally, banks also carefully look at the profile of the demanding person, and in particular their age and marital situation.Indeed, the older the applicant, the more he presents the risk of not being able to repay his credit.It is also easier to lend money to a bachelor winning 2.000 euros per month, that to another person with the same salary but who is married to a person without income.

What recourse to use when you have been refused for your car credit?

After understanding as best as possible why he was denied his car credit, the individual can try to make a request, erasing the stumbling block when possible.A featured person can regularize their situation, if they have the means, by reimbursing their unpaids (for example their monthly payments for a person registered with the FICP or his checks without provision for a person present on the FCC).Once this is done, she will still have to contact the Banque de France and prove the regularization by providing it with the reimbursement certificates issued by her bank or the lending establishment.

By evoking the right to information on his personal data, the borrower can ask his establishment what information concerning him were taken into account when rating his auto credit file.When the refusal seems to be motivated by an overly fragile financial situation, the individual can try to clean up it in the lender, for example through a repurchase (by his bank) or a grouping of his credits (by another bank).If the Auto Credit applicant has the impression that his file has not been properly studied, he can request the review of the customer service of the financial institution, by highlighting his borrowing capacity.As a last appeal, it is possible to contact the mediator of his bank or the mediator of the French Association of Financial Companies (ASF).

(By writing the HREF agency)