Revolving credit

The revolving credit, for many the best known credit. Revolving credits generally have a higher starting interest rate for the credit and comparing revolving credits pays off enormously.

A revolving credit is an ideal way to be in the red every now and then. The starting interest is somewhat higher with a revolving credit (compared to some other types of credit), but it is mainly about convenience. You should think of an interest of about 5% at your own bank or your house bank.

The revolving credit is not an installment purchase. This is much more expensive, so watch out for this. Mail order companies make a lot of money from interest payments in the tens of percent. Buying on installment is also called different, namely an installment credit.

A dead-end credit is a term that refers to the fact that people with a revolving credit often continue to take it. This way of borrowing is often done at your own bank and often has limitations that you indicate yourself before entering into the obligations. You indicate the maximum revolving credit amount yourself, this is usually from 2500 US dollar revolving credit up to a maximum of 75,000 US dollar revolving credit.

Of course your own bank can calculate different amounts and interest rates. But keep in mind that, in addition to a second mortgage, the revolving credit can be a cheap loan.

Tip: view the interest rates offered on-line, request quotes and submit them to your own bank. If the offer is reasonable, your own bank can often participate.

You can often find a cheap revolving credit online, but sometimes it is better to close it with your bank. Comparing revolving credits pays off enormously. The conditions for repayment and of course the interest rate are also very important.

Note: many companies will also test this form of borrowing money at the BKR in Tiel, if you have your own home, a mortgage loan can be much more interesting.

Pros and cons revolving credit

Pros
  • Without a penalty you can make additional repayments on your revolving credit.
  • Shortening of the term by extra interim repayments.
  • Often competitive rates, as revolving credit is a popular product.
Negatives
  • Interest often a bit higher than with a personal loan.
  • More expensive than a mortgage loan.

Compare revolving credit

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