Consumptive credit

Consumer credit is a credit for daily use, without a specific purpose. Quite simply, the "credit for consumption".

Consumer credit is a loan that is not used to renovate your house (with the aim of increasing value) but to buy products or services for everyday use. The goods you purchase with a consumer credit have a limited shelf life, unlike a mortgage loan where you invest in something sustainable. The house mentioned and the increase in value above is an example of this.

Almost every Dutch person sometimes uses a credit for consumption. This could include a holiday, the purchase of white goods or simply being overdrawn on a current account. It is comparable to revolving credit, but differs per bank.

Consumer credit actually consists of two forms which are discussed elsewhere on this site, namely revolving credit and the personal loan.

Advantages and disadvantages of consumer credit

Pros
  • Consumer credit consists of the offer of a revolving credit and the personal loan, both commonplace at competitive interest rates.
  • Easy to apply for and the credit can often be withdrawn quickly.
Negatives
  • Not just credit, but a collective term for credits for daily use.
  • More expensive in relation to mortgage credit.

Compare consumer credit

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