Do you want to request a revolving credit? A revolving credit is a loan that you take out with, for example, a bank or other lender for an indefinite period of time and variable interest. Unlike a personal loan where everything is recorded (monthly repayment amount, interest, duration) you can withdraw money more often with a revolving credit, there is no fixed duration and the interest can vary.
A revolving credit is very suitable if you do not know exactly how much money you want to borrow or if you want a buffer for unexpected costs. You may withdraw additional money until you reach the credit limit, which is the maximum amount that you can borrow. You can set the credit limit in advance. You pay back your loan with interest. In between, you can repay additional fine without penalty. Do you want to borrow a small amount? Then a mini loan is a suitable and appropriate loan form.
What is a revolving credit?
The revolving credit is a consumer loan that is characterized by flexible borrowing with fixed monthly payments. The loan has no fixed end date, variable interest during the term and a fixed monthly amount for repaying the loan. This type of loan is useful if you want to borrow money more often, withdraw money and have extra money on hand. You can request a revolving credit from 1500 euros and the loan amount can go up to 75,000 euros. The term is for an indefinite period of time and you can repay the loan without penalty during the term of the loan.
Where can I request a revolving credit?
You can apply for this loan at most financial institutions. This is a common loan and is therefore offered by many lenders. For example, it is possible to request a revolving credit account with your bank. With a consumer finance company that provides the loan directly to you. You can also apply to a broker where they act as an intermediary and intermediary that makes the best offer from many loan providers.
Bankate is a provider that can immediately offer you a favorable loan without brokerage. In addition, there are providers such as Creditmash and Kredietspotter who act as intermediaries and provide you with a number of offers from many providers.
How much can I borrow?
Just as with a personal loan, the amount of the loan depends on your personal situation and your wishes. Consider your income, your partner’s income, housing costs, the amount you want to borrow and whether you have other loans. With a revolving credit you do not borrow a single amount. You agree with your lender on a maximum amount that you can withdraw. This is called a credit limit. You have this money at your disposal and you can decide how much you spend and how much you repay. There is often no duration because you can withdraw money over and over again. You do, however, have to pay a certain percentage of interest each month on the amount that still needs to be paid.
You always pay a certain percentage of interest on the amount that you have borrowed. However, this interest is not fixed and can therefore change during the repayment period. The interest rate depends on developments in the money and capital market. It is difficult to predict in advance whether the interest rate will remain the same, fall or rise during your repayment.
Benefits of a variable interest:
- The interest rate is often lower than with a personal loan.
- You can repay additional money or withdraw extra money in the meantime without penalty
- Interest benefit if it falls during the repayment period.
Disadvantages of a variable interest:
- There is less certainty about the term, monthly amount and interest.
- More claim is made on your own responsibility. It is very easy to borrow money again and again without having to repay the amount.
- You can be attached to it for a long time.
- The interest may rise, which means that the term also becomes longer and you pay more.
Conditions for revolving credit
Before you are eligible for a revolving credit, we first look at your income, whether you have a permanent employment contract, what your partner’s income is, the level of your housing costs and whether you already have other loans. In addition, almost all lenders will do a test with the Credit Registration Office (BKR). Everyone taking out a loan is registered with the BKR. This registration can always be used to see whether you are currently borrowing and / or have had a loan in the past and whether you have made the payments. If you have not paid your payments, you will receive a negative BKR registration and it is not possible to take out a new loan.
For lenders it is especially important that you are able to pay the monthly amount. If you have a very low income, other debts or no permanent job, you will not be eligible for a loan quickly.
The maximum age at which you can take out a revolving credit is between 59 and 69 years. The minimum age is between 18 and 25 years with the limit being earlier than 25 years.
At Creditmash you can borrow a minimum of € 2,500 and a maximum of € 75,000. At Creditmash you can take out a revolving credit with a credit protector. If, due to circumstances, you are unable to pay the monthly amount, the credit protector will ensure that this is picked up. If you take out the credit protector, you pay a fixed monthly amount for this. You protect yourself in this way in case you die, you become unemployed or incapacitated for work. You or your surviving partner will not be left behind with high debts.
At Bankate you get free advice about your loan. With 3 simple steps you can apply for a loan with an application form. At Bankate, personal contact and responsible lending are paramount. You can request a personal loan or revolving credit for various topics such as some extra money, a trip or renovation. You can borrow a minimum of € 1,500 and a maximum of € 50,000, although the amount of the loan does depend on your personal situation.
Need extra money quickly? Or do you want to purchase a car or a new kitchen? Kredietspotter is looking for the most affordable loan with low interest and they ensure that you have your money quickly. On their site you can easily and quickly calculate how much money you can borrow. This loan amount is calculated on the basis of your income, income of your partner and your housing costs.
Where should you pay attention with the revolving credit
A revolving credit is very beneficial if you want more flexibility. You can redeem or withdraw money whenever you want. This is good if you do not know exactly how much money you need. A revolving credit is also often taken out by people who often have too little money to cover unexpected high costs. The loan gives you a buffer in this case.
It sounds very ideal, but there are also risks:
- There is a variable interest rate, which can rise during the term.
- The revolving credit does not close automatically if you have repaid the loan amount. After all, you can always withdraw money. If you want to end the nimble, report this to the lender.
- You pay interest on the amount that you still have to pay off. The more you pay off the lower the amount you have to pay. But if you withdraw money in the meantime, that amount will increase again.
- There is a great temptation to withdraw money over and over again, remember that the longer you are tied to a revolving credit, the more money you will ultimately spend on interest.
Transferring a loan means that you have the current loan paid off by another lender and that you take out a new loan with that lender. If you have a revolving credit and the interest rate is being increased, you can have the loan transferred to a lender with a lower interest rate. You may repay a revolving credit at any time without penalty. Please note that you do not take out a temporary promotional interest with the new lender. In that case, you will eventually lose more interest after the promotion.
A revolving credit is not automatically terminated, you must do this yourself. Also make sure that the BKR registration with the old loan is deleted.