Money reserve

The term money reserve is a term that is still encountered quite often nowadays although it is used less and less by specialists. Now the term that is found most frequently and being the most suitable is revolving credit .

The money reserve formerly called "permanent credit" is a form of consumer credit with a very specific operation. Unlike other financial solutions, the amount of money made available becomes reusable when it is reimbursed by its user. Its operation is therefore opposed to depreciable credit such as for example that of personal credit whose capital is not reconstituted.

The other particularity of this type of credit lies in the different use options that are offered. Used in classic form, the reserve of money can also be associated with a credit card .

This reserve of money is most of the time offered for amounts ranging from 500 to 3000 US dollars although the limit amount is much higher. For higher amounts, the use of a personal loan will be preferable because it is practiced at lower rates.

This type of financing is mainly used for the payment of expensive purchases in several installments but also to deal with an unforeseen event (eg replacement of household appliance, cash flow problem, etc.).

Credit cards with a cash reserve.

Now most credit cards issued by banks and other credit organizations are "backed by revolving credit", in this case the option of payment on credit facilitates more expensive purchases.

In recent years, many consumer laws have regulated the use of this type of credit and thus protect consumers in order to prevent them from using this type of payment too systematically.
Other definitions of the lexicon starting with the letter R:
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