Life is punctuated by many occasions where the need for immediately available money is imperative: a family event, a good deal to seize, a change of situation ... Revolving credit constitutes a reserve of money that you will be able to use. as you see fit. This very attractive formula, however, deserves careful consideration before making any decision.
You do not necessarily need large sums, but the regular income you have is sometimes insufficient to finance one or more projects that are important to you. Revolving credit , unlike affected credit, is a simple reserve you can draw from, and, as the name suggests, this credit is replenished by your repayments.
The advantage of this formula is therefore its flexibility. Also, you don't pay interest on the entire reserve, but only on the amounts borrowed. Finally, the monthly payments are low and can be spread over three or five years, depending on the amount available to you. The amount borrowed for a revolving credit is between 500 and 3000 € , beyond that the personal credit is often more interesting in terms of the borrowing rate and allows longer repayment periods.
The revolving credit can be taken out with a bank or a credit institution at any time. Depending on various criteria, including your monthly income and your other credits, a lump sum is made available to you. As it is an unallocated credit, you are free to use it partially or totally, for the project of your choice.
As soon as the loan is taken out, the repayment by monthly installments is fixed and takes into account the interest rate, which is often a revisable rate which is around 20%. The lender will inform you regularly of the evolution of this rate.
As with any loan, you will need to measure your ability to repay the monthly payments . The great flexibility of this cash reserve can cause you to spend more, so you should always keep in mind what you still have to pay back and the remaining deadlines.
As the interest rate is quite high, this credit will cost you less if you repay as soon as you have an additional inflow of money: the reserve will always be available and you will thus reduce the amount of monthly payments. And if you change your mind, you can terminate your contract at any time without penalty: it will then be up to you to reimburse the amount used.
Revolving credit is well framed by a legislative device intended to protect the consumer: you will therefore benefit from clear information throughout your contract, which will allow you to carry out your projects while being vigilant.