The reasons for taking out a revolving credit can vary greatly: the purchase of a car or an unexpected repair, the building of a greenhouse or the laying out of the garden. The vacation you’ve been around for so long. Setting up the baby room. Just that little bit of extra luxury in life!
Recession and the revolving credit?
But the current, difficult time of recession and dismissal can also be a reason that you need money immediately. Following a course or course may just give you the guarantee that you can keep your job. If you don’t have the money for that, then a revolving credit is the solution. If you are unemployed for a while, but the rent and the fixed living have to be paid, a revolving credit can help you bridge this time until better times start.
With a revolving credit you can borrow exactly the amount you need at that moment, ranging from € 2,250 to € 50,000. But do not withdraw more than you actually need, because interest must naturally be paid on the loan amount. The usual interest rates for a revolving credit are 1%, 1.5% and 2%, depending on the agreed credit limit and the time you think you will need to repay the revolving credit. You can redeem this at any time that suits you and is free of penalties. The more you pay off, the lower the interest. If you come again later for more expenses, you can withdraw the amount already repaid. In short, with a revolving credit you have exactly the support you need in difficult times.
In expensive times a revolving credit offers the solution!
Withdraw money and pay back whenever you want with a revolving credit. A certain amount of credit is available to you and therefore it is also called a revolving credit. It can happen to anyone: your car breaks down. The ability to withdraw money offers the solution in expensive times. Your mortgage charges or rent will of course continue as usual. A revolving credit, it couldn’t be easier?
What are the advantages?
The ability to withdraw money when you need it is the main benefit, but it offers a number of benefits. You can also decide yourself when you pay it back, you have it entirely in your own hands. Is it not coming out this month? Then you pay the following month or maybe next year, but in the meantime you naturally pay interest on the amount withdrawn. Of course you can always pay off your ongoing credit in between, which is no problem because you have it completely in your own hands.
What are the disadvantages?
A revolving credit can also have disadvantages because of course there are not only advantages. You must use a revolving credit wisely, an important disadvantage can be that you regularly withdraw money while this is not wise. You naturally pay interest for every amount that you withdraw.
Taking out a revolving credit.
If you are faced with an expense where it is not known in advance how much money is needed, a revolving credit can be a solution. For example if you are for the purchase of a new car or for renovating your home. The revolving credit is also known as a flexible loan form, both the term amount, the interest rate and the term can vary. With a revolving credit, there is almost always the possibility of early repayment without you being fined for this. Because this form of credit is flexible, you can withdraw the repaid money, also known as continuous credit. The minimum age to apply for a revolving credit is 18, with the maximum age usually being 70. To prevent the money from being paid back by the borrower, this maximum age has been set by the lenders.
The maximum loan amount is determined based on the income and expenses of the borrower and his partner, if any. A limit is set in advance in consultation with the lender, this is also referred to as credit facility. The interest you pay on the revolving credit depends on the amount of the loan and the interest rates on the market. The duration of the loan, additional insurance policies and personal risk also have an impact. The interest rates can also vary considerably per lender. The interest is therefore very person-dependent.