A revolving credit is a flexible form of borrowing money. With a revolving credit you can withdraw money up to your credit limit and you can make additional redemptions at any time without penalty as much as you want. A revolving credit can be a good form of money for you if you want to keep an amount in hand.
Compare continuous credit providers
In order to make a good choice, it is good to compare continuous credit providers. This can save you a lot of money.
|Personal loan||Revolving credit||Mini loan|
|From 4.1%||From 4.5%||Borrow a maximum of $ 1500|
|Fixed interest||variable interest||No BKR testing|
|from 21 to 69 years old||from 21 to 69 years old||from 21 to 70 years old|
|Payment within 2 days||Payment within 2 days||Payment within 24 hours|
|Apply for a personal loan||Apply for revolving credit||Apply for a mini loan|
When comparing, make sure that they are from interest rates. So don’t just be blinded by the minimum interest rate, but also look at the maximum interest rate. And, perhaps more importantly, if you have not received the lowest interest rate, ask for the reason. Banks and credit intermediaries must of course be able to explain this.
Revolving credit? What are the risks?
Taking out a revolving credit has the risk that you take out a loan form in which the interest is variable. This means that interest can rise and fall. This does not happen every day. Unfortunately, it is also not possible to indicate in advance what the interest will do in the future. The advantage is that you can always repay a revolving credit extra without penalty and therefore also transfer it to another loan form.
And the benefits of a revolving credit?
In addition to disadvantages, a revolving credit also has advantages. The major advantage of a revolving credit is that you can transfer the credit free of charge at any time. This allows you to immediately transfer your loan to a loan with a lower interest rate if interest rates rise. You can of course always transfer a revolving credit to a personal loan if you (or your advisor) expect interest rates to rise again in the short term. Another advantage is the low interest rate. A revolving credit generally has a much lower interest rate than a personal loan.
Finally, it can be noted as an advantage that you always have money with a revolving credit. you can withdraw money up to your credit limit. This gives you more flexibility. The latter can also count as a risk for your loan. If you keep withdrawing up to your credit limit, you never get rid of your loan, and you pay a lot of interest. Make sure that you also always have a certain reduction in your loan with a revolving credit.
For whom is a revolving credit suitable?
The question for whom a revolving credit is suitable is not easy to answer. However, it can be a form of borrowing that is suitable for many people. Due to the flexible possibilities of this loan, you can use the loan for many purposes. There are 2 factors that really matter. The first is that you must be strong enough in your own shoes. The overview you receive from your loan shows how much you can still withdraw.
This is very tempting for many people and can keep you from taking out your loan unintentionally. In addition, it is important to consider how you want to use the loan. If you really need the flexibility, and you are strong enough not to make withdrawals, it can be an extremely suitable form of borrowing money. However, keep an eye on the interest. Large differences can occur in the interest rates of the various providers.