As a general rule, only the last three salary statements are enough to justify your income when applying for a loan. In some cases, however, it may be worthwhile also providing your salary certificate. What is the value of this document when making a request, and what concrete benefits can it bring? Our explanations.
What documents are usually required to justify an income?
For permanent employees, it is sufficient in principle to provide the last three salary slips (sometimes even a single slip) to justify an income. Temporary workers, however, normally provide the last six pay slips.
What is the impact of income for the establishment of a loan offer?
The income of the applicant (or the combined income of the applicants in the case of married couples) is primarily used to define the budget. Concretely, the credit institution takes on the one hand all the income of the applicant, and on the other all the expenses. The remaining amount, or budget surplus, makes it possible to define:
- Whether the loan will be granted or not
- In case of credit granted, the maximum amount of the latter
- The proposed interest rate
Certainly, other elements are taken into account such as the situation of the client, his financial history, etc., but income remains a fundamental element in calculating the budget, and therefore the feasibility of the loan.
The interest of the salary certificate
Providing a salary certificate in addition to a copy of his last sheets allows you to reveal any bonuses or bonuses that would not appear with only the last sheets. This certificate contributes to improving the budget of people:
- Who receive an annual bonus (performance bonus, 13th salary, etc.)
- Who receive monthly premiums which would not have appeared on the last 3 sheets
- Who benefit from other bonuses
If in doubt, should this document be provided?
The objective is always to be able to present your financial situation in the best possible light. If the salary certificate proves an average monthly income higher than that indicated, then adding it to the list of documents is a good thing.
An applicant who goes through a broker or a credit agency like creditflex can benefit from the latter’s experience to optimize their situation. Indeed, where the banks are “content” to study the documents provided, an experienced intermediary will be able to look for the different elements such as a salary certificate which can help improve the budget, and therefore obtain better conditions for his client.