The term of the revolving credit contract
The question of the repayment period of a revolving credit can titillate us since this loan is defined as a credit made available to the borrower as and when repayment and which is also called a permanent credit. So how long can we take advantage of a revolving loan? A revolving credit is granted for a period limited to one year. However, it can be renewed every year. However, before a renewal of the contract, the client's file will be analyzed in detail in order to verify all the information relating to the reimbursement. The client's creditworthiness must also be reviewed every three years. If the borrower wishes to continue the contract, he must notify his lending institution three months before the annual loan maturity date. The lender is entitled to impose changes at each renewal of the contract and his client can accept or refuse them within 20 calendar days.
- Where to subscribe to a revolving credit without proof?
- Have a reserve of money with an advantageous formula
- Reform of the law on consumer credit known as the Lagarde Law
Where to subscribe to a revolving credit without proof?
To subscribe to this type of loan, you must already prove your solvency, otherwise, the contract will not be extended. Thus, the renewal of the credit takes place as and when repayments according to the amount authorized by the organization. It is distributed by banks, specialized credit institutions as well as by simple distributors. In general, the lending institution grants only small credit . On the other hand, this permanent credit is very flexible compared to other types of credit. This is also its main advantage.
Have a reserve of money with an advantageous formula
The revolving credit formula without proof is accompanied by a credit card that can be used in the network of affiliated brands that accepts this credit card. As a result, its formula can be expensive, because it does not provide the banker with any guarantee of security. You will still have to be careful, because fast revolving credit presents a dangerous incentive to overconsume in the event of mismanagement of the account. Nevertheless, its customers use their money reserve well and are solvent in the majority of cases since the permanent loan has received considerable demand since its inception. Note also that the money reserve is free if it is not used and that its interest rate may be revisable.
Reform of the law on consumer credit known as the Lagarde Law
Revolving credit has aroused much criticism, especially from consumers who have questioned its role in household over-indebtedness. In spite of this, the government decided to introduce the Lagarde law and to reform consumer credit by modifying certain practices, among others, the shortening of the duration of credit, the lack of commercial advantage, the prevention of over-indebtedness or the choice between an online revolving credit and a depreciable credit. One last important thing to know too, know that it is now possible to make an early repayment of your revolving credit .
Most often in consumer credit, we talk about affected credit and credit without proof, that is to say that you must justify or not the destination of the sums that will be loaned to you, and this, from the introduction of your request.